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