Leaders of the Catholic Diocese of Stockton said they may have to file for bankruptcy, due to years of lawsuits and multimillion-dollar settlements with sexual-abuse victims -- which are depleting the diocese’s reserves.
Bishop Stephen Blaire told KCRA 3 on Thursday that diocese officials haven’t made any final decisions about bankruptcy, but are seriously considering the option as they assess the organization’s future.
“I think we’ve paid out over $15 million, and so, our reserves now are virtually depleted,” Blaire said. “We just don’t have much left. And we face four lawsuits coming up, and so we’re going to have to financially figure out a way to meet our obligations -- and all of our obligations, not just in these particular cases.”
The diocese would not be the first in the U.S. to file for bankruptcy or consider bankruptcy following settlements in sexual-abuse cases against priests.
Blaire said there are several other dioceses in the country that have done so.
Victims of sexual abuse and their attorneys said the possibility of bankruptcy is only a way for the church to avoid its obligations.
“It’s a selfish cop-out when Catholic institutions misuse the Chapter 11 process to protect their secrets and deny child sex abuse victims a chance to expose predators in court,” read a statement from a group called SNAP, the Survivors Network of those Abused by Priests. “When bishops seek bankruptcy protection, all lawsuits, depositions, discovery and trials come to a screeching halt.”
Blaire said the diocese has paid settlements in about 20 cases and has four lawsuits pending against it, which will further deplete its reserves.
He said a bankruptcy filing would not affect day-to-day operations at Stockton’s 35 Catholic parishes, 13 schools or Catholic Charities.
Parishes operate as a separate corporation, he said.
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