Author Archives: Shelby Kostolni

Important Development in the Archdiocese of San Francisco Bankruptcy Case

The Roman Catholic Archdiocese of San Francisco has announced a tentative agreement with the Official Committee of Unsecured Creditors in its Chapter 11 bankruptcy case that would provide a $395 million settlement, along with several non-monetary commitments focused on youth protection. If approved by a survivor vote and the bankruptcy court, the settlement would establish a trust to compensate survivors through an efficient and equitable claims process.

This is a very significant development. It reflects an agreement to provide substantial compensation to survivors of abuse by priests, church employees, and volunteers, while also including meaningful measures intended to strengthen youth protection going forward.

At the same time, it is important to remember that every diocesan bankruptcy case is different. Settlement outcomes depend on many factors, including the financial circumstances of the particular diocese and the contributions available from other parties. For that reason, survivors should not assume that the San Francisco settlement predicts the outcome of the Santa Rosa bankruptcy case or the value of individual claims here.

Even so, the Official Committee in the Santa Rosa Diocese bankruptcy case is encouraged by this development and continues to work very hard toward the best possible financial recovery for survivors in Santa Rosa, along with meaningful changes to youth protection in the Diocese of Santa Rosa moving forward.

If you are a survivor with a claim in this bankruptcy case and have questions about your individual claim, you should contact your attorney if you are represented. If you have general questions about the bankruptcy process or would like to share comments with the Official Committee, please email santarosasurvivorteam@stinson.com.  All communications are treated confidentially, and we will respond to every message.

After Oakland: Why Can’t My Case Go to Trial?

Recently, a jury in Oakland awarded a Survivor $16 million in a clergy abuse case. Because the Oakland Diocese is also in Chapter 11 bankruptcy, many Survivors in the Santa Rosa bankruptcy have asked: “Why can’t my case go to trial too?”

That is an understandable question. For many Survivors, the Chapter 11 process is unfamiliar and confusing. This website is intended to keep Survivors informed and answer common questions about the bankruptcy process.

Chapter 11 bankruptcy is a voluntary legal process that allows the Diocese of Santa Rosa to reorganize its debts and continue operating. When the Diocese filed for bankruptcy, an “automatic stay” immediately went into effect. That stay paused all lawsuits against the Diocese, including clergy abuse cases that had already been filed or were about to be filed.

The Diocese is seeking to resolve all claims through the bankruptcy process rather than through individual trials. As a result, the Official Committee of Survivors is working to negotiate the strongest possible financial settlement for all Survivors.

So why did a case proceed to trial in Oakland?

In some diocesan bankruptcies, including Oakland and Santa Rosa, the bankruptcy court allows a limited number of “stay relief” cases to move forward. These cases help establish how juries may value abuse claims and provide important information to the Diocese and its insurers about potential liability.

Importantly, any recovery from a stay relief case is typically included in the overall settlement process intended to benefit all Survivors. The purpose is not to give special treatment to one Survivor, but to help inform negotiations for everyone.

In Santa Rosa, the Court has authorized three stay relief cases to proceed. These cases require extensive preparation and may take significant time before reaching trial. The first trial may not occur until 2026 or later.

The Committee recognizes the courage of the Survivors involved, who may face intense scrutiny and possible retraumatization during the litigation process. Their efforts may help strengthen negotiations on behalf of all Survivors.

The Official Committee remains actively involved in every aspect of the bankruptcy process and remains committed to pursuing a fair and appropriate resolution for all Survivors.

If you have questions about how the bankruptcy may affect your individual claim, and you are represented by an attorney, please contact your attorney directly. General questions about the bankruptcy process or comments for the Committee may be sent to santarosasurvivorteam@stinson.com.

Survivor Victory in California

A jury in Alameda Superior Court (Oakland) found this week that one Survivor deserves to be paid $16 million for abuse he experienced in the Diocese of Oakland. The Survivor was abused by a priest who had previously been arrested for abuse, but was then moved to another post. The same priest had been accused of abuse in several other lawsuits. 

Rick Simons, lead trial attorney for the Survivor commented “This is a case about accountability, it’s about justice. It’s about the Survivor finding his voice and regaining his power. We stand with him on this momentous day.” Jeff Anderson, another attorney representing the Survivor commented “Today’s verdict reflects years of resilience and determination, driven by an unwavering pursuit of truth and justice. This moment belongs not only to the Survivor, but to every survivor who has stood up and spoken up.”  

The Diocese of Oakland is in bankruptcy, but this trial was able to proceed because the bankruptcy stay was lifted to allow a small number of Survivor lawsuits to proceed. Details regarding the case can be viewed via this link. Please be aware that details may be difficult to read and re-traumatizing for some Survivors.  

This result makes clear, once again, that Survivor claims are valid and serious and that the Church and its insurers face very significant financial responsibility for Survivor claims in all Catholic Church bankruptcies. The outcome also reflects the bravery and tenacity of the Survivor who agreed to stand up to the Church and its large insurers, and to face down the most difficult experiences of his life, in order to help other Survivors in the Diocese of Oakland and across the country. 

March 2026 Update

  1. Survivor Victory in Sacramento:

You may remember that all Survivor lawsuits against the Diocese were paused when the Diocese filed for bankruptcy. That pausing of lawsuits is called the “automatic stay” and it is something required by bankruptcy laws. But last August, the bankruptcy court granted survivor attorneys special permission to move forward with three survivor lawsuits against the Diocese. The insurance companies of the Diocese did not like that development, so they appealed the bankruptcy Judge’s decision in an effort to stop the survivor lawsuits from moving forward.

We have not received a decision on the appeal by the Diocese’s insurance companies yet. But last week, Survivor attorneys and the Committee of Survivors in the Diocese of Sacramento defeated a very similar appeal by the insurance companies in their case. We are hopeful that we will receive a similar, great result for Survivors in the Diocese of Santa Rosa case very soon.

  1. Settlement Efforts:  

The mediators, Roger Kramer and Janet Fields, continue to meet regularly with the Committee, the Diocese, the Diocese’s parishes, and the Diocese’s insurers in an effort to achieve a settlement for Survivors. The next in-person mediation session is scheduled for May 4 and 5, 2026. Please remember that confidentially rules prohibit parties engaged in mediation from sharing any information about negotiations until there is an agreement. Once a settlement is reached, however, Survivors will have a chance to consider it and vote on it before the bankruptcy court approves anything.

  1. The Diocese is Selling Real Estate to Fund Survivor Claims:

The Diocese recently asked for permission from the bankruptcy court to sell two properties. The first sale involves a residential property located at 918 Napa Street, Napa, California, and the Diocese is proposing to sell it for $569,000. The second sale involves a small mission church located at 345 Klamath Blvd., Klamath, California, and the Diocese is proposing to sell it for $125,000. The funds raised by selling these properties would be used to pay Survivor claims. After talking with its professionals and carefully reviewing the Debtor’s proposed land sales, the Survivor Committee in the Diocese of Santa Rosa’s bankruptcy concluded that the proposed sales were fair and should go forward.

  1. Survivor Impact Statements: 

The Survivor Committee plans to ask the bankruptcy court to hold another Survivor impact statement session sometime this summer. We will keep you updated on that and provide more details when we have them. Please let us know if you are interested in participating and sharing your story with the Bishop and the bankruptcy Judge.

  1. Survivor Website, Follow-Up Questions, and Resources: 

As always, for more periodic updates on the case or other Survivor resources, you can access the Survivor Committee’s website here:  https://www.santarosasurvivors.com/.  If you have any questions or concerns that you would like to send to the Survivor Committee directly, you can do so by sending an e-mail to santarosasurvivorteam@stinson.com