Category Archives: Case Updates

Diocese of Sacramento February 2026 Update

  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.

    Property Sale Updates

    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.

    Important Developments in New York and New Orleans

    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.

    “How Long is this Going to Take?”

    By Doug Kennedy

    The question we get the most from Survivors who find themselves pulled into a bankruptcy is either “How long is this going to take?” or after a while, “When will this be over?”  For many Survivors, after decades of dealing with the impact of their abuse, these are understandable questions because bankruptcy often represents the first time their abuse has been recognized by others and some degree of resolution is a possibility.  I remember well asking the same questions.  I had just been appointed to the “Official Committee of Survivors” in an organization’s bankruptcy and turned to the Survivor next to me to ask how long he thought things would take.  His answer was “I’m guessing two years.  There’s a lot to be settled.”  I remember thinking “Two years?  Let’s all get in a room, negotiate, and get this done.”  We were both wrong!  It took five years, and appeals are now dragging it out longer.  So, while no one can accurately predict how long a bankruptcy will take, it’s important for Survivors to understand what’s involved so their expectations can be realistic.

    Bankruptcy is initiated by a Diocese voluntarily to “reorganize” its debts, pay those it owes what it can, and then continue to operate under the terms of a bankruptcy plan approved by the Court.  To do that, bankruptcy must include complex agreements with creditors (including Survivors) and often many insurance companies that issued policies to the Diocese.  This involves the discovery process and often multiple mediation sessions spanning a great deal of time.  Unfortunately, mediation follows strict confidentiality rules that prevent the parties from sharing very much information.  So, it can often seem like nothing is happening when in fact a great deal of negotiation is taking place.  It’s important to know though that the Official Committee of Survivors is engaged in all facets and along with its legal professionals is working hard to resolve the bankruptcy.  Unfortunately, because of the complexity involved it just takes a lot of time.

    Perhaps the best expectation of how long a Diocese bankruptcy might take comes from looking at other cases.  Since 2004 there have been 36 Diocese bankruptcies either settled or ongoing.  The average length of time that they lasted, or continue to be ongoing is between three and five years (our numbers include 21 cases that are ongoing so that average number of months may actually increase when they are settled). 

    As my own bankruptcy went on, there were moments of hope that a resolution was near, and many more moments when I realized that it wasn’t.  It was hard not to be disappointed and wonder if it would ever end, and when it did, if the result would be worth the wait.  Being a Survivor is a very long and often very bumpy road.  It’s important that your expectations for this phase of the journey are realistic.  So, I hope this message helps your thinking.  I got tired of telling my family “I don’t know what’s going to happen.” 

    There were many days when the most positive thing I could think was “Well, another day, but one more day closer to this being over.”  Please take care of your mental health so you can weather those periods when resolution seems far off or unknown, keep in contact with your attorney, check your Official Committee’s website, and remember that your Official Committee and its legal professionals are laser-focused on all that needs to be accomplished to bring an end to the bankruptcy.  If you have a question at any time regarding the bankruptcy process just email sacramentosurvivorteam@stinson.com.  Every Survivor’s message is important and will receive a reply.  Stay strong.