On Tuesday, the Catholic Diocese of Fresno announced an intent to file for Chapter 11 Bankruptcy in the month of August after it had been inundated by over 150 clergy abuse claims.
The Diocese hopes to resolve these claims through bankruptcy filing after receiving increased pressure from a recent state law that more easily allows victims to bring claims forward.
Diocese Statement
The Diocese of Fresno announced the bankruptcy plans on May 28, characterizing them as a “plan to fairly compensate victims.”
“Today, Bishop Joseph Brennan announced the Diocese of Fresno’s plan to address the sin of clergy sexual abuse and that the plan includes filing a petition for Chapter 11 bankruptcy through the United States Bankruptcy Court in August of this year,” said a statement from the Diocese Superintendent of Catholic Schools Joan Bouchard.
California Law
The statement brought up the recent California law signed in 2019 which Bouchard feels has made every Diocese susceptible to sudden increased claims.
“This news comes on the heels of the enactment of a California State law, which opened a three-year window for individuals to bring forward otherwise barred or expired claims for sexual abuse suffered as a child. Since the closing of the filing window on December 31, 2022, the Diocese has been informed of 154 cases filed. The reopening of the window has made every Diocese in California susceptible to more claims,” the statement said.
Assembly Bill 218
The law referenced by the Bouchard is California’s Assembly Bill 218, which among other things expands the definition and period people can claim childhood sexual abuse.
“This bill would change that reference from childhood sexual abuse to childhood sexual assault, as defined, and it would remove the requirement that the conduct occurred on or after that specified date. The bill would also make a conforming change to the provision governing confidentiality provisions in childhood sexual abuse claims,” says AB 218.
Recovery of Damages
AB 218 also gives victims of childhood sexual assault an increased time limit to recover damages from incidents through the legal system.
“This bill would increase the time limit for commencing an action for recovery of damages suffered as a result of childhood sexual assault to 22 years from the date the plaintiff attains the age of majority or within 5 years of the date the plaintiff discovers or reasonably should have discovered that the psychological injury or illness occurring after the age of majority was caused by sexual assault, whichever is later,” the law says.
Considering All Options
The announcement of the Chapter 11 filing was sudden, but the Diocese asserts that it was a decision reached with careful consideration.
“Bishop Brennan has considered all possible options with his cabinet, staff and professionals retained by the Diocese and is confident that filing for Chapter 11 bankruptcy is the best option,” said the Bouchard statement.
Operations of the Diocese
Superintendent Bouchard promises that the bankruptcy will not affect the functionality of the schools that he oversees because they operate under separate entities.
“I would like to assure you of the following: The Diocese requesting a court-supervised reorganization, will not affect the operational functions of our Catholic schools. Your child’s education and your community will remain uninterrupted. The only entity filing for bankruptcy protection is the corporate sole, known legally as The Roman Catholic Bishop of Fresno. Our Catholic schools operate under a separate legal and ecclesial entity known as The Diocese of Fresno Education Corporation, and will not be filing for bankruptcy protection,” Bouchard said.
Commitment to Safety
Despite the 154 sexual abuse cases filed, Bouchard attempts to reassure that the church will make children’s safety a top priority.
“I imagine many of you will join Bishop Brennan, myself, and the rest of the faithful in our sadness and disappointment upon hearing of the immense suffering endured by victims. It is a chilling reminder of our church’s past. We want to reassure you that your children’s safety is of the upmost priority and pledge to continue our efforts in creating a safe environment for all,” said Bouchard.
Need for Atonement
The Diocese of Fresno expressed the importance of atoning in light of the clergy sexual abuse allegations.
“Bishop Brennan has acknowledged the need to atone for the sin of clergy sexual abuse in an equitable and compassionate manner. He believes that the faithful share that same acknowledgment,” said the statement.
Abuse Cases
The Diocese released a list in 2021 of priests who had accusations deemed credible as the conclusion of a two-year review.
The list included over two dozen people within the Diocese, including priests, deacons, and church members. It also contained another two dozen people who had accusations at other Dioceses.
Cost of Doing Business
This sudden bankruptcy news comes after the Diocese unveiled its finished construction of a $21 million parish church that can seat around 3,200 people for a single Mass service.
The church was boasted as the largest Calothic parish in America, beating out nearly 17,000 other parishes in competition.
Cynical Motivation
While the Diocese expressed commitment and compassion for the victims, some advocates view this bankruptcy move cynically. They think the action will slow the process of justice down in the courts so the Diocese can avoid having to pay out victim settlements.
“I think it’s an indication of their moral bankruptcy, not their financial bankruptcy,’ said Survivors Network of those Abused by Priests advocate Melanie Sakoda to ABC7.
