Information on the Diocese filing for Chapter 11 of the Bankruptcy Code
Update From Bishop Michael C. Barber, S.J.
October 7, 2024
Dear faithful Catholics and friends of the Diocese of Oakland,
May the peace and love of our Lord Jesus Christ continue to be with each one of you!
Today, I want to update you on the progress we have made since May 8, 2023, when the Roman Catholic Bishop of Oakland (the Diocese) made the difficult but necessary decision to seek bankruptcy protection. The effect of California state law AB 218, which temporarily revived the statute of limitations for sexual abuse claims, meant we did not have the resources to simultaneously defend the claims made against the Diocese for abuse which happened decades ago, and to provide adequate compensation to abuse survivors, as well as to continue to fulfill our mission to serve God and His people.
Thus, the Diocese filed bankruptcy because we believe this process is the best way to support a compassionate and equitable outcome for abuse survivors, while we continue to spread the Gospel and provide essential services and support so crucial to our parishioners and communities.
We believe we have made significant progress toward that goal. Regrettably, it has been necessary for the Diocese to sue our insurers, so they will satisfy their moral and contractual responsibility to pay covered claims and assist contributing to a settlement. This pursuit now involves more than a dozen different insurers and a court-ordered mediation process and is a key component of a potential settlement in bankruptcy.
Second, over the last seven months, we have been engaged in mediation with the group of survivors appointed by the bankruptcy court, through mediation with their counsel and representatives. We are also separately mediating with representatives of our insurers. Each mediation is overseen by court-appointed mediators, with the goal of reaching a settlement which may then be approved by the bankruptcy court. We are working toward a bankruptcy court deadline of Nov. 8, 2024, through which the Diocese has the exclusive right to file a plan of reorganization with the bankruptcy court, pursuant to which the Diocese would seek to compensate the survivors. The details of these negotiations are confidential pursuant to an order of the bankruptcy court, and the process remains extremely difficult.
The bankruptcy case has required a tremendous amount of effort including making necessary court filings and production of reams of documents and information about the Diocese. The financial burden of being a debtor in bankruptcy is also tremendous. We believe progress is being made. Still, I must stress to you that a settlement in the bankruptcy case, if we are able to achieve it, will necessarily involve shared sacrifice – there is no way around this.
Nothing can undo or excuse the terrible suffering the survivors have endured following the deplorable conduct of their abusers. We are hopeful the survivors nonetheless recognize the Diocese is working in good faith to try to compensate them fairly and equitably. I believe this kind of settlement is the right thing to do.
A settlement in the bankruptcy case is not guaranteed, and much work remains. Therefore, I ask you, my brothers and sisters in Christ Jesus, to join me in praying for a successful conclusion to this process. Please pray for the survivors; for those in our Diocese working so hard now to keep children safe; for our team working to resolve the bankruptcy case fairly and justly; and for me.
This is a time of purification for our Church and Diocese. We are committed to the mission Christ has entrusted to us: to bring His message of love, mercy, and salvation to the people of the East Bay. We trust in the promise Christ made to us at His Ascension: "I will be with you all days, until the end of the world." It is His Church; and the power of His love will prevail.
I thank you, the priests, religious, and laypeople of our Diocese for your generosity, fidelity, and good will.
On this feast day of the Holy Rosary, we ask Mary, Queen of Heaven, to intercede for us with her Divine Son.
Yours sincerely in Christ,
The Most Reverend Michael C. Barber, S.J.
Bishop of Oakland
For more information, please visit:
https://oakdiocese.org/chapter-11
October 7, 2024
Dear faithful Catholics and friends of the Diocese of Oakland,
May the peace and love of our Lord Jesus Christ continue to be with each one of you!
Today, I want to update you on the progress we have made since May 8, 2023, when the Roman Catholic Bishop of Oakland (the Diocese) made the difficult but necessary decision to seek bankruptcy protection. The effect of California state law AB 218, which temporarily revived the statute of limitations for sexual abuse claims, meant we did not have the resources to simultaneously defend the claims made against the Diocese for abuse which happened decades ago, and to provide adequate compensation to abuse survivors, as well as to continue to fulfill our mission to serve God and His people.
Thus, the Diocese filed bankruptcy because we believe this process is the best way to support a compassionate and equitable outcome for abuse survivors, while we continue to spread the Gospel and provide essential services and support so crucial to our parishioners and communities.
We believe we have made significant progress toward that goal. Regrettably, it has been necessary for the Diocese to sue our insurers, so they will satisfy their moral and contractual responsibility to pay covered claims and assist contributing to a settlement. This pursuit now involves more than a dozen different insurers and a court-ordered mediation process and is a key component of a potential settlement in bankruptcy.
Second, over the last seven months, we have been engaged in mediation with the group of survivors appointed by the bankruptcy court, through mediation with their counsel and representatives. We are also separately mediating with representatives of our insurers. Each mediation is overseen by court-appointed mediators, with the goal of reaching a settlement which may then be approved by the bankruptcy court. We are working toward a bankruptcy court deadline of Nov. 8, 2024, through which the Diocese has the exclusive right to file a plan of reorganization with the bankruptcy court, pursuant to which the Diocese would seek to compensate the survivors. The details of these negotiations are confidential pursuant to an order of the bankruptcy court, and the process remains extremely difficult.
The bankruptcy case has required a tremendous amount of effort including making necessary court filings and production of reams of documents and information about the Diocese. The financial burden of being a debtor in bankruptcy is also tremendous. We believe progress is being made. Still, I must stress to you that a settlement in the bankruptcy case, if we are able to achieve it, will necessarily involve shared sacrifice – there is no way around this.
Nothing can undo or excuse the terrible suffering the survivors have endured following the deplorable conduct of their abusers. We are hopeful the survivors nonetheless recognize the Diocese is working in good faith to try to compensate them fairly and equitably. I believe this kind of settlement is the right thing to do.
A settlement in the bankruptcy case is not guaranteed, and much work remains. Therefore, I ask you, my brothers and sisters in Christ Jesus, to join me in praying for a successful conclusion to this process. Please pray for the survivors; for those in our Diocese working so hard now to keep children safe; for our team working to resolve the bankruptcy case fairly and justly; and for me.
This is a time of purification for our Church and Diocese. We are committed to the mission Christ has entrusted to us: to bring His message of love, mercy, and salvation to the people of the East Bay. We trust in the promise Christ made to us at His Ascension: "I will be with you all days, until the end of the world." It is His Church; and the power of His love will prevail.
I thank you, the priests, religious, and laypeople of our Diocese for your generosity, fidelity, and good will.
On this feast day of the Holy Rosary, we ask Mary, Queen of Heaven, to intercede for us with her Divine Son.
Yours sincerely in Christ,
The Most Reverend Michael C. Barber, S.J.
Bishop of Oakland
For more information, please visit:
https://oakdiocese.org/chapter-11
- The Roman Catholic Bishop of Oakland announced May 8, 2023, that it has filed for Chapter 11 of the Bankruptcy Code to manage legal expenses and facilitate settlements with abuse survivors.
- Our diocese is set up as a corporate sole, which means all parishes are under the corporate umbrella of the Diocese. While all the parishes in the Diocese are included in the filing, it is important to understand our daily operations, the celebration of sacraments and other aspects of regular parish life will be unaffected by the action taken.
- The Diocese will continue to administer health and welfare benefits, along with various retiree programs, without interruption. The funds for these programs are held in trusts and can only be used for their specified purpose.
- Programs and ministries of the diocese, such as marriage preparation, Hispanic ministry, CYO sports and others will continue uninterrupted.
- Monies given by parishioners will continue to be used as operating funds for our parish. Our parish relies on our parishioners’ donations to continue our work and ministries both within our parish and our community.
- The Bishop’s Ministries Appeal donations are solicited to fund designated projects and programs and are held in restricted accounts designated for certain purposes only.
- The Catholic schools, while affiliated with the Diocese, are incorporated as part of separate legal entities, and therefore are not included in the bankruptcy filing.
- All schools continue to provide education based on our Catholic faith and tradition. The Chapter 11 filing, and the related legal proceedings, will not have a direct impact on the day-to-day operations of our schools.
- The employment, salaries, and benefits of RCBO employees will not be impacted by this filing.
- Tuition, philanthropic support, parish support of schools will, as always, be fully dedicated to funding the operations of the schools and is not impacted by the Chapter 11 filing.
- The bankruptcy process should bring closure to the Diocese and all parishes from any and all abuse claims. We are still quantifying the lawsuits filed against the Diocese under the recent California Assembly Bill 218, which allowed decades-old claims that were otherwise time barred and expired. As we move through the settlement process, additional information will be available.
- We are taking responsibility for the damage done so that we can all move beyond this moment and provide survivors with some measure of peace and compassion.
For more information, visit www.oakdiocese.org. RCBO has also set up a toll-free information line for inquiries at 888-733-1425 (U.S./Canada) or 310-751-2631 (International). For access to certain court documents and other information about our Chapter 11 case, please visit https://www.kccllc.net/RCBO.