The Official Committee of Survivors in the Diocese of Santa Rosa bankruptcy, with the assistance of its legal counsel Stinson LLP, has been diligently involved in all aspects of the bankruptcy and is sharing the update below.  Please understand that we are also involved in mediation with all parties and must maintain strict confidentiality.  This prohibits us from sharing some information until agreements are made public.  However, we will continue to update this website whenever possible.

• Litigation Efforts:  Over the summer the Committee secured two big victories.  First, the court granted the Committee permission to sue two Catholic entities in Washington, D.C. (the United States Conference of Catholic Bishops and Catholic Relief Services) to recover up to $760,000 from those entities for the benefit of Survivors; that lawsuit is ongoing.  Second, the court granted permission for three Survivors’ lawsuits to proceed against the Diocese and its affiliates.  The court also authorized Survivors to send settlement demands to the Diocese.  While the rest of the Survivors’ cases against the Diocese remain paused during the bankruptcy case, we expect that these three cases (along with the settlement demands) will help us move settlement talks forward more quickly.

• Ongoing Mediation:  One of the mediators in this case stepped down due to health concerns, and the court appointed a replacement mediator named Roger Kramer. Mr. Kramer has a strong track record of resolving similar cases.  In collaboration with the new mediator, the Committee is actively engaged with the Diocese, its affiliates, and its insurers to negotiate a global settlement as soon as possible.  Once an agreement is reached, Survivors will have a chance to vote on it and the bankruptcy court will also have to approve it.  Once the settlement is approved by the bankruptcy court, Survivor claims can be reviewed and paid.  

• Positive Developments in Other Cases:  In the bankruptcy of the Diocese of Albany, the court ruled that insurance companies may not object to claims filed in the case.  Also, in the bankruptcy of the Diocese of Syracuse, the bankruptcy court confirmed (approved) a plan of reorganization over the objections of insurers and the U.S. Trustee.  We view both these positive developments as helpful precedents that will limit the ability of third parties, especially insurance companies, to hinder and delay our Committee’s efforts in the Diocese of Santa Rosa’s bankruptcy.

• Survivor Website, Follow-Up Questions, and Resources:  The Survivor Committee created this website to provide information about the Diocese’s bankruptcy throughout the case.   The website provides an overview of the bankruptcy process, answers frequently asked questions, posts periodic case updates, and lists important resources for Survivors in the Santa Rosa area.  If you have any questions about the bankruptcy process or concerns that you would like to send to the Official Committee directly, you can do so by sending an e-mail to santarosasurvivorteam@stinson.com.

Judge Littlefield Rules Insurers Do Not Have Standing to Object to Survivor Claims

In a significant victory for Survivors, Judge Littlefield has issued a decision that has wide-ranging implications. Specifically, Judge Littlefield concluded that insurers who deny that they are financially responsible for survivor claims do not—without more—have standing (the ability to act in Court) to object to survivor claims. The decision is instructive with regard to when and whether insurance companies have the ability to act in bankruptcy cases.

In the Diocese of Albany case, two of the Diocese’s insurance carriers, London Market Insurers and the Hartford, objected to nearly 50 survivor claims. The Committee challenged the objections, arguing that the insurers did not have standing to object. Judge Littlefield agreed, writing:  “As the Court stated on the record, it is difficult to “understand how [the Insurers] create the thread that [the Insurers] have standing when [they] have nothing at stake, [they] have no skin in the game.” 

The Committee applauds this decision and is hopeful that it will recognized across the country in situations where insurance companies attempt to interfere in bankruptcy cases to the detriment of Survivors.

A Survivor in New York was recently awarded $30 million by Supreme Court Justice Meagan K. Galligan.  Represented by Pfau Cochran Vertitis Amala, the Survivor was abused at a Boy Scout Camp by the defendant who was unlawfully posing as a doctor.   Details of this case can be read via this link.  Please be aware that details may be difficult to read and re-traumatizing for some Survivors.  From that article, Ben Watson an attorney representing the Survivor commented “This verdict is a major victory for Mr. Pringle and for survivors across New York.  It also sends a clear message to any individual or institution that believes they can get away with the sexual abuse of children: the law will hold you accountable.”

The Official Committee of Survivors of Sexual Abuse in the Diocese of Santa Rosa bankruptcy has been fully engaged in this bankruptcy process and is sharing this update:

1. Mediation is ongoing with full Committee involvement.  Throughout previous months the Committee has been engaged in discussions with the mediators and representatives of both the Diocese and Hannah Boys Center.  These meetings continue to follow the principles of “Mediation Confidentiality,” and allows the parties to negotiate and discuss issues confidentially as they seek resolution to this bankruptcy.  The Committee understands that some Survivors may be frustrated that more details of the mediation sessions can’t be shared.  This website will continue to be updated whenever possible, to include significant Court decisions.

2. The Diocese of Santa Rosa has proposed the sale of property located on Spring Street in Hopland, CA for $275,000. The proceeds will stay with the Diocese until the case is resolved.   In consultation with Stout, our real estate advisors, this sale would be within the range of reasonable value for the property, so the Committee is not objecting.  The Committee will continue to review all proposed real estate sales to ensure that the maximum amount will be available to Survivors in a bankruptcy settlement.