The Roman Catholic Diocese of Fresno said on Tuesday that it voluntarily filed for Chapter 11 bankruptcy, citing 153 allegations of priest sex abuse.
More than a year has passed since the diocese first announced its intention to file for bankruptcy in the United States.
While abuse victims and their lawyers criticized the church for what they say are delay tactics to help the diocese dodge justice, Fresno church leaders said the step will help them avoid insolvency.
The next hearing for church executives before Judge Ren Lastreto II is set for Monday in Eastern District Court in Fresno.
In a letter to parishioners, Bishop Joseph V. Brennan stated, “I am clear-sighted that this path is the only path that will allow us to handle claims of sexual abuse with fair, equitable compassion while simultaneously ensuring the continuation of ministry within our Diocese.” The pain that victims of clergy sexual assault go through must be addressed by our Church.
Brennan said the court will create a fund to be distributed to survivors, even though the church has not admitted culpability for all 153 claims.
“The proceedings help the diocese and bishop avoid accountability,” said Jeff Anderson, whose law firm has represented victims of clergy abuse in 11 of California’s 12 dioceses, including the Archdiocese of Los Angeles.
“They are once again denying responsibility by forcing survivors into bankruptcy court,” Anderson wrote in a statement. However, we will support survivors and fight for the full extent of justice, truth, and healing that they are entitled to.
California
Bishop Joseph V. Brennan, the head of the Fresno diocese, stated that the decision to declare bankruptcy was required because the diocese has been inundated with allegations of sexual abuse.
Since Assembly Bill 218 was passed in January 2020, the church has been the target of more than 150 allegations of sexual assault, which it recognized in May 2024.
Certain civil sexual assault cases that had previously expired owing to the statute of limitations now have a three-year window thanks to AB 218.
According to the Act, the deadline for submitting a claim was December 31, 2022.
According to lawyer Jennifer Stein, AB 218 caused all 50 of the firm’s clients to file cases immediately, with one filing in 2019 in hopes of the Assembly bill’s passage.
The majority of victims, according to her, were children who had been traumatized by clergy abuse and were left permanently scarred.
“That’s trauma that lingers throughout your academic and professional career, in relationships with others, and in marriages,” she said. Not enough attention is paid to the fact that every single survivor has a story to share about their abuse.
California
In order to handle the hundreds of child sex abuse lawsuits that have been brought against it, the Catholic Archdiocese of San Francisco is most likely going to declare bankruptcy.
According to Stein, bankruptcy deprives victims of publicity and shifts the focus of court proceedings—which may take years—on property and corporate structure.
“Bankruptcy is about the church’s ability to pay,” she explained, in contrast to state court proceedings.
With 87 parishes and 21 schools spread across Fresno, Kern, Kings, Inyo, Madera, Mariposa, Merced, and Tulare counties, the diocese of Fresno is home to over a million Catholics.
A list of 63 accused clergy and laypeople, including ordained priests as early as 1906, was made public by the diocese in 2021. Some clergy were from Guatemala, France, Ireland, Mexico, and the Philippines, but the majority were indigenous.
Attorney Rick Simons filed a motion in court on Monday, requesting that the bankruptcy announcement from Fresno be looked into. He stated that he thinks several dozen cases were fraudulently delayed by the more than year-long lag since May 2024. Nearly 1,800 separate cases have been filed against seven Catholic dioceses, including Fresno, as part of the Northern California Clergy Cases court procedure, which Simons oversees.
The benefits for the church, according to Simons, include survivors dying out, growing weary and leaving, or drastically lowering their expectations, Simons told The Times.
California
According to its bishop, the Catholic Diocese of Sacramento may have to file for bankruptcy as a result of hundreds of recent sexual abuse claims.
In order to ensure that specific monies or accounts are not included in the debtor’s inheritance, he added, the church may have used this time to reorganize funds and property. According to Simons, the proclaimed intent to file for bankruptcy also prevents discovery and jury trials from proceeding while cases are awaiting bankruptcy.
Regarding the charge, the church chose not to comment.
Church leaders have stated that they do not anticipate any effects on Catholic charities, other local affiliations, or primary and high schools managed by the diocese.
Those properties are named in the Chapter 11 filing, but diocese officials have stated that they do not anticipate an impact at Catholic cemeteries either.
The diocese admitted that it might not be able to pay the claims and might become bankrupt if the value of the Diocesan assets available to settle them, including any insurance coverage that may be available, was insufficient.
Additionally, the diocese confirmed that it was not getting any funding from the Vatican.
