Baltimore Catholic Church bankruptcy settlement delay Archives

Photo: Old Saint Paul's Church on Charles Street; via Shutterstock. It has been nearly two years since the Catholic Archdiocese of Baltimore filed for bankruptcy, a move that was supposed to pave the way for compensating survivors of clergy sexual abuse. But after numerous delays and procedural turns, survivors have yet to receive a single dollar, and many feel they’ve been left in the dark, Scott Maucione reports for WYPR. One survivor recently voiced that frustration directly to U.S. Bankruptcy Court Judge Harner. “What started as a positive situation as the rust of a newly enacted law by the Maryland legislature years ago has developed into what one might describe as a circus,” the survivor wrote. “Who do the victims believe and what can they believe? Especially when there is almost complete secrecy surrounding this case.” Court documents reveal that roughly $11 million has already been paid to the dozen law firms and financial entities working on the bankruptcy case, fueling further survivor anger. During a Monday hearing, Judge Harner urged those firms to consider holding a town hall meeting to update survivors about the progress, or lack thereof. Bankruptcy cases, especially those involving large institutions like the Catholic Church, often take years. But the slow pace in Baltimore has drawn added scrutiny, particularly over delays tied to insurance disputes. The Archdiocese is attempting to collect on policies from three insurers—Federal Insurance Company, Indemnity Insurance Company of North America, and Westchester Fire Insurance Company—all subsidiaries of the Chubb Corporation. According to survivor Theresa Lancaster, the mediation process has been obstructed by the insurance companies’ resistance. The insurers recently filed a motion to bar survivors from sharing their stories in court, arguing that “victim statements are a creature of criminal procedure,” while bankruptcy cases are civil matters. Although precedent exists for excluding such statements in civil court, Judge Harner ultimately allowed survivors to speak and submit written testimony. These voices, many argue, are not only essential to the case but also central to the healing process. “They’ll throw anything at the court to try to stop it,” said Lancaster. “The insurance companies are claiming that the testimonies are improper, but we say that it’s more than the money, it’s about the actual lives behind it. A lot of these people have suffered irreparable harm, and some tragically took their own lives as a result of childhood rape and that that should be known.” Lancaster warned that if progress continues to stall, the bankruptcy case itself may be dismissed. That would mean forcing survivors to sue the Archdiocese individually, reigniting a painful legal process for hundreds of people. As of now, no date has been set for the proposed town hall meeting. If you are a survivor of sexual abuse by a member of the Catholic Church, you still have options, and several plaintiffs have secured large settlements. Learn more by visiting our Catholic Church sexual abuse lawsuit guide.You can also start the process of receiving a free case review by filling out the brief, confidential form.

Baltimore Catholic Church bankruptcy settlement delay

Survivors Still Waiting as Baltimore Archdiocese’s Bankruptcy Case Drags On

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Baltimore Catholic Church bankruptcy settlement delay

Survivors Still Waiting as Baltimore Archdiocese’s Bankruptcy Case Drags On

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