On October 27, 2025, the Diocese of Santa Rosa obtained approval from the Bankruptcy Court to sell Our Lady of Mount Carmel Church in Cloverdale, California for $460,000.00. The net proceeds of the sale will be made available for distribution to Survivors according  to the terms of any consensual plan of reorganization approved by the Bankruptcy Court. In the professional opinion of Stout Risius Ross, LLC (the Committee’s real estate valuation expert), this sale price is above the range of reasonable values for the property, so the Committee supported the sale. The Committee continues to review all real estate sales proposed by the Diocese to ensure that the maximum amount will be available to Survivors in a bankruptcy settlement.

By Doug Kennedy

The question we get the most from Survivors who find themselves pulled into a bankruptcy is either “How long is this going to take?” or after a while, “When will this be over?”  For many Survivors, after decades of dealing with the impact of their abuse, these are understandable questions because bankruptcy often represents the first time their abuse has been recognized by others and some degree of resolution is a possibility.  I remember well asking the same questions.  I had just been appointed to the “Official Committee of Survivors” in an organization’s bankruptcy and turned to the Survivor next to me to ask how long he thought things would take.  His answer was “I’m guessing two years.  There’s a lot to be settled.”  I remember thinking “Two years?  Let’s all get in a room, negotiate, and get this done.”  We were both wrong!  It took five years, and appeals are now dragging it out longer.  So, while no one can accurately predict how long a bankruptcy will take, it’s important for Survivors to understand what’s involved so their expectations can be realistic.

Bankruptcy is initiated by a Diocese voluntarily to “reorganize” its debts, pay those it owes what it can, and then continue to operate under the terms of a bankruptcy plan approved by the Court.  To do that, bankruptcy must include complex agreements with creditors (including Survivors) and often many insurance companies that issued policies to the Diocese.  This involves the discovery process and often multiple mediation sessions spanning a great deal of time.  Unfortunately, mediation follows strict confidentiality rules that prevent the parties from sharing very much information.  So, it can often seem like nothing is happening when in fact a great deal of negotiation is taking place.  It’s important to know though that the Official Committee of Survivors is engaged in all facets and along with its legal professionals is working hard to resolve the bankruptcy.  Unfortunately, because of the complexity involved it just takes a lot of time.

Perhaps the best expectation of how long a Diocese bankruptcy might take comes from looking at other cases.  Since 2004 there have been 36 Diocese bankruptcies either settled or ongoing.  The average length of time that they lasted, or continue to be ongoing is between three and five years (our numbers include 21 cases that are ongoing so that average number of months may actually increase when they are settled). 

As my own bankruptcy went on, there were moments of hope that a resolution was near, and many more moments when I realized that it wasn’t.  It was hard not to be disappointed and wonder if it would ever end, and when it did, if the result would be worth the wait.  Being a Survivor is a very long and often very bumpy road.  It’s important that your expectations for this phase of the journey are realistic.  So, I hope this message helps your thinking.  I got tired of telling my family “I don’t know what’s going to happen.” 

There were many days when the most positive thing I could think was “Well, another day, but one more day closer to this being over.”  Please take care of your mental health so you can weather those periods when resolution seems far off or unknown, keep in contact with your attorney, check your Official Committee’s website, and remember that your Official Committee and its legal professionals are laser-focused on all that needs to be accomplished to bring an end to the bankruptcy.  If you have a question at any time regarding the bankruptcy process just email santarosasurvivorteam@stinson.com.  Every Survivor’s message is important and will receive a reply.  Stay strong.

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.