Roman Catholic Diocese of San Diego announces plans to file bankruptcy
SAN DIEGO (FOX 5/KUSI) — The Roman Catholic Diocese of San Diego is planning to file for Chapter 11 bankruptcy, the religious organization announced Thursday.
Cardinal Robert McElroy, Bishop of San Diego, released a letter to parishioners and clergy confirming the action. This comes about 16 months after he said bankruptcy was being considered as a means of settling with abuse survivors.
“The diocese faces two compelling moral claims in approaching the settlement process: the need for just compensation for victims of sexual abuse and the need to continue the church’s mission of education, pastoral service and outreach to the poor and marginalized,” McElroy wrote in his letter.
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The Cardinal went on to explain that bankruptcy offers “the best pathway to achieve both.”
Only the diocese is filing for bankruptcy, not the parishes, Catholic charities, parochial schools or Catholic high schools. However, compensation may still be needed from the other organizations.
“It is clear that as part of providing appropriate compensation to past victims of the sexual abuse of minors, both the parishes and high schools will have to contribute substantially to the ultimate settlement in order to bring finality to the liability they face,” McElroy wrote in his letter.
The diocese is currently facing more than 450 claims of sexual abuse after the California legislature passed AB 218 in 2019. This lifted the statute of limitations, opening a three-year window for victims to file suits — some of which are more than 50 years old.
“May God never let this shame pass from our sight, and may God’s tenderness envelop the innocent children and teenagers who were victimized,” the Cardinal wrote in the closing of his letter.
A law firm representing some of the victims — the Zalkin Law Firm — released a statement shortly after the bankruptcy announcement, claiming this will be the second time the Diocese of San Diego has filed for bankruptcy protection and is doing so “to avoid paying fair compensation to child sexual abuse victims.”
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