Federal Judge Rejects the Oakland Diocese’s Bankruptcy Plan That Would Have Resolved Nearly 330 Sexual Abuse Claims

A federal judge has rejected the Oakland Diocese’s bankruptcy relief plan that would have resolved nearly 330 sexual abuse claims. The judge’s Oct. 2 decision comes three years after the Oakland Diocese filed for bankruptcy due to declining participation and an ongoing financial crisis linked to sexual abuse cases dating between 1960 and 1990.

Judge William J. Lafferty dismissed many of the diocese’s arguments in its bid to settle through bankruptcy, including wanting special considerations given its status as a religious institution, the diocese’s valuation of its many real estate assets, and the total amount owed to survivors. According to the diocese’s bankruptcy plan, submitted two years ago, the church owes between $160 million and $198 million.

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