Baltimore Diocese Declares Bankruptcy Ahead of Looming Legal Changes on Abuse Cases

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Just days before the implementation of a new Maryland law that eliminates the statute of limitations on civil lawsuits relating to child sexual abuse, the Baltimore Archdiocese filed for Chapter 11 bankruptcy protection.

Archbishop William E. Lori issued a statement via the diocese’s official website, stating that the bankruptcy filing aims to “fairly remunerate victims of child sexual abuse” while sustaining the ongoing work and ministries of the United States’ oldest Catholic diocese.

Legal professionals and victim advocates, however, argue that the move is primarily designed to safeguard the church’s financial assets. By filing for bankruptcy, the archdiocese effectively puts on hold all civil litigation against it and transfers the proceedings to the less publicly scrutinized environment of the bankruptcy court.

Michael McDonnell, the acting executive director of the Survivors Network of those Abused by Priests, accuses the Baltimore diocese of employing a well-worn strategy. “It’s the same story, different diocese,” McDonnell stated. “This is an ongoing effort to evade responsibility, impede the course of justice, and perpetuate a culture of secrecy.”

Although the new Maryland law, effective on Sunday, prevents litigation against the archdiocese during its bankruptcy proceedings, it does not extend this protection to other affiliated institutions such as Catholic schools and individual parishes.

The recent legislation came on the heels of a nearly 500-page report from the state attorney general, which revealed extensive child sexual abuse and institutional cover-ups within the archdiocese. The report named more than 150 clergy members who were credibly accused of abusing over 600 victims across multiple decades.

Rob Jenner, a lawyer who represents victims, criticized the archdiocese’s timing as causing additional emotional strain on the victims. “This eleventh-hour move is just another way to keep the extent of the abuse and wrongdoing hidden,” Jenner commented.

Kimberly Mills-Bonham, one of the plaintiffs, found her case transferred to bankruptcy court due to the school where her alleged abuse occurred being closed. She is among the victims who view the bankruptcy filing as a continuation of the abuse they experienced.

David Lorenz, the Maryland state director of the Survivors Network of those Abused by Priests, said that the bankruptcy proceedings would dilute the legal rights newly granted to victims. Once the bankruptcy process concludes, victims’ claims will be settled en masse, closing the window for further claims.

Archbishop Lori, however, contends that the bankruptcy filing is the most feasible approach to provide compensation to victims, asserting that the alternative—lengthy legal battles—would likely result in financial depletion that benefits only a small fraction of survivors.

Financial documents associated with the Chapter 11 filing estimate the archdiocese’s assets to range between $100 million and $500 million, with liabilities estimated between $500 million and $1 billion. Among the listed creditors are 685 survivors of abuse.

Starting on Sunday, Maryland will no longer have a statute of limitations for filing civil lawsuits against institutions for child sexual abuse. However, this change will not apply to the archdiocese while it undergoes bankruptcy proceedings.

Victims and their attorneys vow to persevere in their legal efforts. Jeff Anderson, a lawyer specializing in child abuse cases, affirmed, “The Baltimore Archdiocese has underestimated the resilience and determination of the survivors. We shall persist in advocating for them throughout the bankruptcy process.”

This article has been updated to clarify that the new Maryland law pertains to the removal of the statute of limitations on civil lawsuits, not criminal charges.

Reported by Denise Lavoie from Richmond, Virginia; Sarah Brumfield from Silver Spring, Maryland; Tiffany Stanley from Washington, D.C.; John Raby from Charleston, West Virginia, and Ben Filney from Norfolk, Virginia.

Frequently Asked Questions (FAQs) about Baltimore Archdiocese Bankruptcy

More about Baltimore Archdiocese Bankruptcy

• Maryland’s New Law on Child Sexual Abuse Claims
• Chapter 11 Bankruptcy Explained
• The Scope of Sexual Abuse in the Catholic Church
• Archbishop William E. Lori’s Statement
• Survivors Network of those Abused by Priests
• Report by Maryland’s Attorney General on Abuse in Archdiocese
• The Netflix docuseries “The Keepers”