Diocese of Oakland files for bankruptcy as it faces hundreds of sexual abuse claims

"The Diocese of Oakland is surely morally bankrupt, it seems to us, but they do not deserve to be declared financially bankrupt Except for character and integrity, it is not poor."

May 9 (UPI) -- The Roman Catholic Diocese of Oakland has filed for Chapter 11 bankruptcy, church officials said, as it prepares to compensate victims who accuse its clergy and staff of having sexually abused them over the last six decades.

Bishop Michael Barber made the announcement in a letter to parishioners on Monday, stating they are filing for bankruptcy in the belief that "this is the best way to support a compassionate and equitable outcome for survivors of abuse while ensuring we continue to provide the essential services and support so crucial to our parishioners and communities."

The bishop also revealed that more than 330 people have filed sexual abuse lawsuits against the diocese during a three-year window that closed Dec. 31, allowing adults who were abused by church officials as children to seek compensation.

Filing for court-supervised bankruptcy will stop all legal actions against the diocese, which covers 82 parishes, and affords it the ability to reorganize its assets to settle claims with abuse survivors, he said.

"Given our current financial resources, RCBO could not shoulder the burden of litigating 330 cases filed under the recent California Assembly Bill 218," Barber said in a statement to the media, referring to the legislation that extended the statute of limitations for filing such lawsuits.

The majority of the lawsuits were filed over allegations of sexual abuse that were committed in the 1960s, '70s and '80s by priests the church said are no longer active in the ministry or are dead.

"It's important we take responsibility for the damage done so we can all move beyond this moment and provide survivors with some measure of peace," he said.

"Sadly, for many, the pain caused by these horrific sins, no matter when they occurred, will never wash away, which is why we offer support to survivors and pray for their continued healing."

The Survivors Network of Those Abused by Priests, better known as SNAP, rebuked the announcement Monday as an attempt by the church to deny transparency and justice to its victims.

"Everything about this bankruptcy strikes us as wrong," it said in a statement. "It's all about keeping money and secrets."

The network accused Barber of filing for bankruptcy in order to prevent high-ranking members of the church accused of sexual abuse from testifying in court.

"The Diocese of Oakland is surely morally bankrupt, it seems to us, but they do not deserve to be declared financially bankrupt," it said. "Except for character and integrity, it is not poor."

The move by the Diocese of Oakland comes almost exactly two months after its Santa Rosa equivalent similarly filed for Chapter 11 as it was facing at least 160 new lawsuits filed by those who accuse its clergy of having sexually abused them.



In February, the Diocese of San Diego announced it would consider filing for bankruptcy in light of sexual abuse claims filed by some 400 people.

The Diocese of Oakland said that in 2003 under a similar law that extended the statute of limitations, it resolved 52 lawsuits with money it secured from insurance funds, the sale of property and loans.

Barber assured parishioners in his letter Monday that schools would not be affected by the bankruptcy filing.