The Archdiocese of Baltimore announced Friday it filed for Chapter 11 bankruptcy reorganization days before a recent state law goes into effect removing the statute of limitations on child sex abuse claims and allowing victims to sue their abusers a long time after the actual fact.
The step will “allow the archdiocese to equitably compensate victim-survivors of kid sexual abuse” while the local Catholic church continues its mission and ministries, Archbishop William E. Lori said in a press release posted on the archdiocese website.
But attorneys and advocates said the church is solely attempting to protect its assets and silence abuse victims by shifting the legal proceedings to bankruptcy court.
Jeff Anderson, an attorney specializing in child sex abuse cases whose firm has offices across the country, said the bankruptcy filing is “a calculated decision in hopes to silence and suppress survivors of abuse.”
“Little does the Archdiocese of Baltimore know the strength and resilience of the survivors who’ve come forward — we are going to proceed to face by them and vigorously advocate for them within the bankruptcy process,” Anderson said in a press release Friday afternoon.
Michael McDonnell, interim executive director of the national group Survivors Network of those Abused by Priests, said the Baltimore archdiocese is following within the footsteps of other jurisdictions across the country which have similarly sought bankruptcy protection to offset settlement costs.
“Catholic bishops are employing the identical deception from coast to coast,” he said. “Cover up child sex offenses while maintaining the ministry of the abusers. Next, oppose any modifications to the statute of limitations that may make those offenses more visible. Finally, go to federal bankruptcy courts and act as if you will have run out of cash when secular laws offer a window to justice. When will church officials make true amends?”
But Lori argued the move is the very best approach to compensate survivors for the reason that archdiocese’s resources would have otherwise been exhausted on litigation, perhaps after only a small variety of cases had been decided.
“Staggering legal fees and huge settlements or jury awards for a couple of victim-survivors would have depleted our financial resources, leaving the overwhelming majority of victim-survivors without compensation, while ending ministries that families across Maryland depend on for material and spiritual support,” he said.
On Sunday, Maryland will end the state’s statute of limitations for when civil lawsuits for child sexual abuse could be filed against institutions. Victims are already poised to file lawsuits when the law takes effect. Lawmakers included a provision within the law that may put lawsuits on hold until the Supreme Court of Maryland can settle on the law’s constitutionality, if it’s challenged on legal grounds.
Earlier within the week, Maryland’s attorney general released some previously redacted names in its staggering report on child sex abuse within the Baltimore archdiocese, however the names of 5 Catholic Church leaders remained redacted amid ongoing appeals, prompting criticism of the church by victims’ advocates.
Lori said the financial reorganization is anticipated to take two to 3 years and involve several steps. He said the bankruptcy court will begin accepting claims from victims who want to enter into negotiations with the church.
“The Archdiocese and victim-survivors will then enter negotiations with the hope of agreeing to a plan that features a trust fund to supply compensation. If a plan is approved by the bankruptcy court, no future claims for past cases of abuse could be brought against the Church,” he said.
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This story’s first paragraph has been updated to make clear that recent law will remove statute of limitations on civil claims, somewhat than charges.
