1. Stay Relief: The Official Committee in this bankruptcy filed a motion, that has been granted, to allow four State Court actions to move forward.  The Committee believes that this stipulation will help incentivize the Diocese, its affiliates, and insurers to reach a settlement for all Survivors.  Any awards received as a part of these four actions will go to benefit all Survivors.
2. Stipulation Appeal: Not unexpectedly, two of Diocese’s insurers are currently appealing the Bankruptcy Court’s approval of the stipulation mentioned above.  The Official Committee of Survivors has filed its response to this appeal, and oral argument is set for March 2, 2026, before the District Court.
3. State Court Actions: The state court actions that were released by the stipulation are not currently disrupted by the insurers’ appeal and are proceeding quickly.  The Survivor Committee and the Diocese believe that trial in three of the released cases will be set for the end of 2026, with the fourth occurring sometime in early 2027.
4. Mediation: Mediation is still ongoing with Roger Kramer serving as the mediator.  The Official Committee of Survivors is negotiating earnestly the financial terms of a settlement with both the Diocese and its insurers and will continue to press the Diocese to strengthen its child protection policies to ensure that children are safe in the Diocese in the future.  The Court requires that details of mediation be kept confidential by all parties, so it is impossible to share developments unless the parties agree that they can become public. We will continue to update this case website when we can.
5. Property Sales: The Diocese (with the support of the Official Committee of Survivors) has agreed to sell eighteen properties throughout the Diocese of Sacramento.  Although only one of these properties has been sold so far, the others are either being marketed currently or prepared for the marketing process. The proceeds from any sales will be used to fund a settlement with all Survivors during the Diocese’s bankruptcy.  The Official Committee of Survivors, with the assistance of the property experts it has retained, is actively monitoring the sale process and ensuring that proceeds are appropriate and will be available as part of any financial settlement with Survivors.

The Official Committee of Survivors knows that the bankruptcy process can be a difficult and often a re-traumatizing one for Survivors.  It is working hard to achieve a satisfactory settlement in this bankruptcy as swiftly as possible but also recognizes that due to its complexity that this process takes a great deal of time.  Duration of cases such as this one is discussed here.  The Committee has also posted some valuable mental health resources here.   As mentioned, if you have questions about how the bankruptcy impacts your own case you should communicate with your attorney if you are represented.  If you have general bankruptcy questions or a message for the Official Committee you are also welcome to contact the Stinson team via sacramentosurvivorteam@stinson.com.  We always welcome your questions and thoughts, and every message receives a response.

Last week, the Diocese of Sacramento obtained approval from the Bankruptcy Court to sell undeveloped cemetery property located in Riverside, California for $2,697,000.00. The net proceeds of the sale will stay with the Diocese until the case is resolved. FTI (the Official Committee’s real estate advisors), reviewed the sale process and the sale price and determined that the Diocese conducted a proper marketing process and that the sale price was reasonable. As a result, the Committee supported the sale. The Committee will continue to review all real estate sales proposed by the Diocese to ensure that the maximum amount will be available to Survivors in a bankruptcy settlement.

Survivors involved with the Archdiocese of New York and Archdiocese of New Orleans have seen important developments recently.  

In New York, the Archdiocese has announced it enter a formal negotiation process with attorneys for Survivors and commit at least $300 million to compensate the 1,300 victims of sexual abuse with claims pending against the church. Additional information may be found here.  

In New Orleans, Survivors and the Archdiocese reached a settlement of $230 million, approved by the bankruptcy court, to address the claims of approximately 600 Survivors who have been a part of this bankruptcy since it was filed in May of 2020. Further information about the New Orleans case can be found here. 

Both of these developments point to the recognition that significant financial settlements are appropriate to address the harm that Survivors have endured during their lifetime.  While every bankruptcy proceeding is unique, these are positive developments for Survivors.  If you have legal representation and questions related to your case, you should direct them to your attorney.  If you have questions about the bankruptcy process in general, you may email Stinson LLP via sacramentosurvivorteam@stinson.com.  Every message will receive a response.

The Diocese of Sacramento obtained approval from the Bankruptcy Court to sell a property located in Oroville, California for $415,000.00. The net proceeds of the sale will stay with the Diocese until the case is resolved.   In the professional opinion of FTI (the Official Committee’s real estate advisors), this sale price is within the range of reasonable values for the property, so the Committee supports the sale.  The Committee will continue to review all real estate sales proposed by the Diocese to ensure that the maximum amount will be available to Survivors in a bankruptcy settlement.

Judge Littlefield Rules Insurers Do Not Have Standing to Object to Survivor Claims

In a significant victory for Survivors, Judge Littlefield has issued a decision that has wide-ranging implications. Specifically, Judge Littlefield concluded that insurers who deny that they are financially responsible for survivor claims do not—without more—have standing (the ability to act in Court) to object to survivor claims. The decision is instructive with regard to when and whether insurance companies have the ability to act in bankruptcy cases.

In the Diocese of Albany case, two of the Diocese’s insurance carriers, London Market Insurers and the Hartford, objected to nearly 50 survivor claims. The Committee challenged the objections, arguing that the insurers did not have standing to object. Judge Littlefield agreed, writing:  “As the Court stated on the record, it is difficult to “understand how [the Insurers] create the thread that [the Insurers] have standing when [they] have nothing at stake, [they] have no skin in the game.” 

The Committee applauds this decision and is hopeful that it will recognized across the country in situations where insurance companies attempt to interfere in bankruptcy cases to the detriment of Survivors.

The Diocese of Sacramento obtained approval from the Bankruptcy Court to sell a property located in Dixon, California for $502,500. The proceeds of the sale will stay with the Diocese until the case is resolved.   In the professional opinion of FTI (our real estate advisors), this sale price is within the range of reasonable values for the property, so the Committee supports the sale.  The Committee will continue to review all proposed real estate sales to ensure that the maximum amount will be available to Survivors in a bankruptcy settlement.

On July 25, 2025, Judge Klein granted four Survivors relief from the automatic stay to pursue their cases against the Diocese and affiliated co-defendants in state court. The automatic stay is a mechanism in bankruptcy cases that “stays” or suspends actions, including lawsuits, against the bankrupt entity for the duration of the bankruptcy case. Here, when the Diocese filed for bankruptcy, Survivors were prevented from continuing their lawsuits against the Diocese because of the automatic stay.  With the joint support of the Committee and the Diocese, and over numerous objections from the insurance companies, the Bankruptcy Court modified the automatic stay so that four Survivors can proceed with their cases against the Diocese and affiliated co-defendants in state court. In addition to ending decades of silence about the horrors of abuse within the Diocese, the Committee believes that these cases will spur progress in the ongoing mediation in the bankruptcy case as they (1) will provide information regarding the value of all Survivor claims; and (2) alter the current mediation dynamics, which are ongoing. 

A Survivor in New York was recently awarded $30 million by Supreme Court Justice Meagan K. Galligan.  Represented by Pfau Cochran Vertitis Amala, the Survivor was abused at a Boy Scout Camp by the defendant who was unlawfully posing as a doctor.   Details of this case can be read via this link.  Please be aware that details may be difficult to read and re-traumatizing for some Survivors.  From that article, Ben Watson an attorney representing the Survivor commented “This verdict is a major victory for Mr. Pringle and for survivors across New York.  It also sends a clear message to any individual or institution that believes they can get away with the sexual abuse of children: the law will hold you accountable.”

The Diocese of Sacramento has proposed the sale of a property located around Highway 80 & Placer Hills Road in Colfax California for $450,000. The proceeds will stay with the Diocese until the case is resolved.   In consultation with FTI, our real estate advisors, this sale would be within the range of reasonable value for the property, so the Committee is not objecting.  The Committee will continue to review all proposed real estate sales to ensure that the maximum amount will be available to Survivors in a bankruptcy settlement.

In what is a victory for all Survivors who find themselves part of a Diocese bankruptcy, a Survivor abused by a Diocese of Winona NY priest has been awarded $7.6 million by a jury.  This is an important development because the defendant in the lawsuit was US Fire Insurance, an insurer who chose not to settle with the Official Committee of Survivors in the Winona bankruptcy.  Now, that insurer is liable for this settlement and the costs associated with its defense.  Further information regarding the Winona decision can be found at Survivor Abused by Diocese of Winona Priest Sees Victory in the Courtroom, Awarded $7.6 Million – Jeff Anderson and Associates

1. Survivor Impact Statements:  On March 31, 2025, ten Survivors presented impact statements at a hearing before the Bankruptcy Court.  Bishop Jaime Soto and other Diocese representatives were also present to hear the impact statements.  The Survivor Committee is grateful to the brave Survivors who shared the truth about their abuse and its effect on their lives.  The Survivor Committee is also hopeful that the impact statements will increase understanding regarding the tremendous pain and challenges Survivors endured and continue to endure as a result of their difficult experiences.  At this time, no additional hearings for the presentation of impact statements have been scheduled or approved by the Bankruptcy Court, but additional hearings may be possible if more Survivors express an interest in presenting a statement.  
2. Mediation:  Mediation is a process that allows Survivors, through the Survivor Committee, to negotiate a settlement with the Diocese and the Diocese’s insurers.  Mediation is ongoing with Roger Kramer serving as the mediator.  The Survivor Committee is negotiating the financial terms of a settlement and will also press the Diocese to strengthen its child protection policies to ensure that children are safer going forward.  The Court requires that the Survivor Committee keep information about its negotiations with the Diocese during mediation confidential.  Survivors sometimes find this challenging because they do not have information about how things are progressing.  If you have questions, or are experiencing frustration during the mediation, remember that the Survivor Committee is made up of nine Survivors, and that they are dedicated to representing all Survivors in the case as effectively as possible.  You are also welcome to contact the Stinson team via sacramentosurvivorteam@stinson.com, or have your own attorney(s) contact Stinson, any time.  We always welcome your questions and thoughts.
3. State Court Actions:  Upon the filing of the bankruptcy petition, all state court actions against the Diocese and its affiliates were automatically paused (i.e., stayed).  Those state court actions are consolidated for procedural purposes before Judge Chatterjee in the Superior Court of California, Alameda County.  On April 28, 2025, the Diocese filed a complaint in the Bankruptcy Court seeking confirmation that the automatic stay applies not just to claims against the Diocese, but also to claims against its affiliates.  The initial hearing on the complaint is scheduled for June 25, 2025.

The Official Committee of Survivors of Sexual Abuse appointed to advocate for all Survivors in the Sacramento Diocese bankruptcy has noted the election of a new leader of the Catholic Church, Pope Leo XIV.  This has raised concerns among some regarding his commitment to the prevention and investigation of sexual abuse in the Church.  This article summarizes those concerns.  The Official Committee wishes to acknowledge those concerns and share that it is fully committed to its work in this bankruptcy to both gain a financial settlement for Survivors and the adoption of policies that will end sexual abuse within the Church.