Catholic Diocese of Oakland to create sex abuse survivors' fund in wake of bankruptcy
The Roman Catholic Diocese of Oakland, which filed for bankruptcy last year in the wake of hundreds of child sex abuse lawsuits, said Sunday that it will create a survivors' trust to compensate victims of the church.
"I apologize without reservation for the terrible suffering survivors have endured," said Bishop Michael Barber in a news release. "I and everyone in the Diocese of Oakland remain committed to the healing of survivors and their families, and to ensure no clergy, religious, employee or volunteer who would abuse a child can be in any ministry in our church."
The Roman Catholic Bishop of Oakland filed for bankruptcy protection in May 2023 in the face of 345 child sex abuse claims going back decades, church officials said. Lawyers for the survivors say the number is more like 370.
The diocese filed for Chapter 11 bankruptcy in order to stave off individual lawsuits and consolidate the claims in a court-supervised process that will ultimately lead to settlements.
"After careful consideration of the various alternatives for providing just compensation to innocent people who were harmed, we believe this process is the best way to ensure a fair and equitable outcome for survivors," Barber said at the time of the bankruptcy announcement.
On Sunday, the diocese said it filed a Plan of Reorganization with the bankruptcy court earlier this week.
"The Plan, if confirmed by the bankruptcy court, creates a Survivors' Trust to provide compensation of between approximately $160 million and $198 million or more for approximately 345 claims," the diocese said.
Attorneys for the victims on Friday sent out a statement decrying the diocese's plan.
"This is not a reorganization plan," said Jeff Anderson, an attorney for the victims. "This is the Bishop's shell game—it's a scam and a sham."
Anderson said the bishop is trying to "force a plan on survivors without their approval or consent" and that the church has grossly undervalued its assets.
The diocese said the Plan of Reorganization funds will come from the Roman Catholic Bishop of Oakland to the tune of $103 million, a contribution from real estate that RCBO believes is worth between $43-81 million or more, and contribution by the Roman Catholic Welfare Corporation/Schools of $14.5 million, and possible contributions of cash from other entities.
Plaintiffs will also be able to pursue insurance proceeds from RCBO's insurers.
Anderson alleges the church has a real estate portfolio of $3.4 billion and that the plan "smacks of fraud and deceit."
"According to research and public data, we believe the Diocese of Oakland's bankruptcy filings undervalued its assets to deceive people, the parishioners, the public and the survivors," said Anderson in a statement released by his office.
A spokesperson for the diocese on Sunday responded to the attorneys' allegations.
"We are committed to continuing the mediation process while seeking approval by the bankruptcy court for the proposed reorganization plan," wrote Helen Osman in an email Sunday night. "The plan is based on real numbers and realistic estimates."
Anderson's office on Friday released a statement from a survivor it represents.
"I believe the Diocese will pay the lowest amount they can," said Cathy, an Oakland sexual abuse survivor. "They are before this court looking for a discount on my pain. On our pain. The church protects its money and reputation more than its children. No amount of money will make me whole and restore the child that was damaged in that one moment."
Barber on Sunday said the church wants to keep its obligations.
"While this is an extremely difficult challenge, we want to honor our obligation to survivors," said Barber. "We recognize that no amount of money can fully and satisfactorily compensate survivors for the abuse they suffered. Bearing that in mind, we believe the plan compensates survivors in a fair and equitable way and allows the Diocese of Oakland to set a path forward to continue to spread the Gospel, serving the faithful and the poor."
The lawsuits came in the wake of California Assembly Bill 218, which went into effect in 2020 and opened a three-year window allowing childhood sex abuse lawsuits to move forward despite statute of limitations rules that had prevented older claims.
Church officials say most of the sex abuse claims it's facing involve allegations from 1960s, 1970s and 1980s by priests who are no longer active in the ministry or who have died.
