Author Archives: Shelby Kostolni

September 2026 Update

Recent Property Sales

On Thursday, June 24, 2026, the Diocese of Sacramento obtained approval from the Bankruptcy Court to sell 53 acres of undeveloped land in Vacaville, CA. This sale will collectively generate approximately $23,550,000 in proceeds which, as with prior sales, will be held in a segregated bank account during the course of the bankruptcy. All net proceeds will be held for use in a financial settlement with Survivors. 

    The Committee and its real estate professionals, FTI, have reviewed these sales and agree that the marketing process and price were commercially reasonable.  As a result, the Committee did not object to these sales prior to their approval by the Bankruptcy Court. The Committee continues to review all real estate sales proposed by the Diocese to ensure that the maximum amount will be available to pay Survivors.

    Mediation

    At the request of the mediator, Roger Kramer, the Court has extended the deadline for the Debtor to file a plan of reorganization to September 30, 2026.  The Committee and the Debtor are continuing to focus upon the mediation process and are making meaningful progress towards a settlement. This progress includes the scheduling of an in-person mediation session in mid-September. If the mediation process is unsuccessful, the Committee will update Survivors on the path forward and the steps it intends to take to ensure the best possible outcome on their behalf.

      Survivor Victory in California

      A jury in Alameda Superior Court (Oakland) found this week that one Survivor deserves to be paid $16 million for abuse he experienced in the Diocese of Oakland. The Survivor was abused by a priest who had previously been arrested for abuse, but was then moved to another post. The same priest had been accused of abuse in several other lawsuits. 

      Rick Simons, lead trial attorney for the Survivor commented “This is a case about accountability, it’s about justice. It’s about the Survivor finding his voice and regaining his power. We stand with him on this momentous day.” Jeff Anderson, another attorney representing the Survivor commented “Today’s verdict reflects years of resilience and determination, driven by an unwavering pursuit of truth and justice. This moment belongs not only to the Survivor, but to every survivor who has stood up and spoken up.”  

      The Diocese of Oakland is in bankruptcy, but this trial was able to proceed because the bankruptcy stay was lifted to allow a small number of Survivor lawsuits to proceed. Details regarding the case can be viewed via this link. Please be aware that details may be difficult to read and re-traumatizing for some Survivors.  

      This result makes clear, once again, that Survivor claims are valid and serious and that the Church and its insurers face very significant financial responsibility for Survivor claims in all Catholic Church bankruptcies. The outcome also reflects the bravery and tenacity of the Survivor who agreed to stand up to the Church and its large insurers, and to face down the most difficult experiences of his life, in order to help other Survivors in the Diocese of Oakland and across the country. 

      Property Sale Update

      The Diocese of Sacramento recently obtained approval from the Bankruptcy Court to sell two properties: (i) a single-family residence in Vallejo, California; and (ii) another single-family residence in Sacramento, California.  These sales will generate $1,175,225 in net proceeds for the Diocese’s estate, which will be held in a segregated bank account during the course of the bankruptcy. 

      The Committee’s real estate professionals, FTI, has reviewed these sales and has advised the Committee that the marketing process and price were commercially reasonable.  As a result, the Committee did not object to these sales prior to their approval by the Bankruptcy Court.  As with previous sales of real property, all net proceeds will be held for use in a financial settlement with Survivors.  The Committee continues to review all real estate sales proposed by the Diocese to ensure that the maximum amount will be available to pay Survivors.

      Mediation Update

      The Official Committee of Survivors in the Diocese of Sacramento bankruptcy, advocating for all Survivors, will be returning to mediation with the Diocese soon.  Mediation is an important component of the bankruptcy process and allows the parties, with the involvement of an experienced Mediator, to explain their viewpoints and hopefully make further progress toward a settlement. 

      The Official Committee continues to be involved in all facets of the bankruptcy process, including mediation, and is committed to the best financial settlement possible for all Survivors.  The Committee knows that Survivors want resolution but also understands we need to push hard for fairness on the financial side and make sure that the Diocese puts in place the best youth protection measures possible to protect children in the future.

      Please note that mediation follows strict confidentiality measures so it is not possible to release much information publicly until the parties agree on any settlement issues.  The Official Committee will continue to update this website with any developments that may be shared.  Survivors, if represented by legal counsel, should discuss with their attorneys any questions related to their individual case. 

      Questions about the bankruptcy process in general may be directed to the Committee legal professionals, Stinson LLP, via sacramentosurvivorteam@stinson.com.  Every message to Stinson will receive a reply.