The San Diego diocese’s Chapter 11 petition will be filed Monday, Cardinal Robert McElroy says
Cardinal Robert W. McElroy watches as the Catholic Communities from San Diego processioned during the celebration of the San Diego Diocese’s sixth annual Pentecost Mass for All People at Mira Mesa on Saturday, May 27, 2023.The Roman Catholic Diocese of San Diego announced Thursday that it plans to return to U.S. bankruptcy court to help manage its response to hundreds of lawsuits filed by people who say they were sexually assaulted by Catholic priests when they were young.
The legal action, which is expected to be filed Monday, comes after church officials acknowledged last year that they were considering a return to bankruptcy court and began mediation with survivors. “After nearly a year of mediation, we were hoping that child sexual abuse survivors, the Diocese and its insurer would have been able to reach a settlement and an agreed-to plan for compensating victims through the inevitable bankruptcy announced by the Diocese about a year ago,” plaintiffs’ attorney Irwin Zalkin said.Plaintiffs’ lawyers said the Catholic Diocese of San Diego is the 13th diocese across the country to seek bankruptcy protection from sexual-abuse survivors.
The Chapter 11 proceeding more than 15 years ago was marred by accusations from victims’ lawyers that church officials deliberately hid assets from the bankruptcy court in order to limit damages.“The term ‘disingenuous’ as applied to the Diocese description of assets available to fund the settlement is completely accurate,” then-U.S. Bankruptcy Court Judge Louise De Carl Adler said in a ruling.
That same year, in the weeks leading up to the bill being signed into law, the diocese systematically transferred ownership of hundreds of its properties., the diocese owned 376 properties at the start of 2019 but just 76 by that year’s end — an 80 percent drop. None of the property transfers involved money changing hands or other monetary consideration.
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