Facing more than 130 new claims of child sexual abuse and the prospect of large financial settlements, the Roman Catholic Diocese of Santa Rosa announced Friday it will be filing for Chapter 11 Bankruptcy protection shortly after the new year.
Vasa said the Chapter 11 process will allow the Diocese to handle the abuse claims collectively, rather than one at a time, while allowing the Diocese “to continue the various charitable ministries in which it is engaged.”
Victim advocates and plaintiffs’ attorneys say the announcement doesn’t come as a surprise. It’s a blueprint other Catholic dioceses across the country have followed in the past when hit with lawsuits. “None of the attorneys representing survivors are surprised by this announcement,” said Rick Simons, a Bay Area trial attorney representing clergy abuse plaintiffs.
While the announcement didn’t come as a shock, victim advocates still blasted the decision, calling it an attempt to skirt transparency and potentially reduce payouts to victims. “Bankruptcy freezes the discovery of plaintiffs suing [the Diocese], limiting the damage of sworn testimony and the obligation of defendants to honestly answer written questions known as ‘interrogatories.’”
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