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.

The deadline to filed proofs of claim was October 1, 2024. The next step in the case is mediation (settlement negotiations) between the Committee, the Diocese, and Insurers once the court refers the parties to mediation. This page will be updated when mediation is set to begin.

On May 11, 2024, the Bankruptcy Court granted the Committee’s application to employ Stinson LLP (“Stinson”) as its counsel in the bankruptcy case. The Court authorized Stinson to, among other things, represent the Committee at hearings, advise the Committee, investigate the conduct and assets of the Debtor, aid in the Committee’s participation in formulating a plan, and negotiate issues relating to the value and payment of claims held by the Committee’s constituency.

The Roman Catholic Bishop of Sacramento (also referred to as the “RCBS,” the “Diocese of Sacramento” or simply the “Diocese“) filed for chapter 11 bankruptcy on April 1, 2024.  In its initial case filings, the Diocese explained that:

“The RCBS enters chapter 11 as a further step toward fulfilling its moral obligation to try to compensate all Abuse survivors fairly and within a reasonable amount of time. … The RCBS intends to negotiate a plan of reorganization as early as possible which will: (a) allocate fair compensation among the legitimately competing interests for [RCBS’s assets]; (b) provide a process to fully, fairly and expeditiously resolve claims of Abuse survivors; and (c) permit the RCBS to carry on the RCBS’s essential ministries and services so the RCBS can continue to meet the needs of the Non-Debtor Catholic Entities, parishioners, and others who rely on the RCBS’s ministry, education, and charitable outreach.”

The Diocese estimated that at the time it filed for bankruptcy it had less than 1,000 creditors.  Its total assets had an estimated value between $100 million and $500 million, and its total liabilities also had an estimated value of $100 million to $500 million.