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.