San Francisco Archdiocese files for bankruptcy after flood of new sex abuse lawsuits

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San Francisco Archdiocese bankruptcy overview: 

• Who: The Archdiocese of San Francisco has filed for Chapter 11 bankruptcy protection in the wake of more than 500 lawsuits alleging child sex abuse.
• Why: The archdiocese said filing for Chapter 11 will give the organization time to come up with a reorganization plan based on its assets and insurance coverage that can be used to settle claims from abuse survivors. 
• Where: The case is in California bankruptcy court. 

The Archdiocese of San Francisco has filed for Chapter 11 bankruptcy protection in an effort to manage more than 500 child sex abuse lawsuits that have been brought against the religious organization following the passage of Assembly Bill 218. 

The bill, which was passed into California state law in 2020, temporarily put aside the statute of limitations for claims of child sex abuse, according to Law360. 

Archbishop Salvatore J. Cordileone announced the archdiocese’s decision to file for Chapter 11 in a letter on Monday, in which he stated the decision is the best plan for both abuse survivors and the ministry itself. 

“We believe the bankruptcy process is the best way to provide a compassionate and equitable solution for survivors of abuse while ensuring that we continue the vital ministries to the faithful and to the communities that rely on our services and charity,” Cordileone wrote. 

San Francisco Archdiocese lists estimated assets, liabilities as $100 million to $500 million

Filing for Chapter 11 protection will pause legal actions against the archdiocese so as to give it time to come up with a reorganization plan based on its assets and insurance coverage that can be used to settle claims brought by survivors of abuse. 

The San Francisco Archdiocese listed both its estimated assets and estimated liabilities as $100 million to $500 million, in a petition the organization filed in California bankruptcy court. 

Cordileone said only the Roman Catholic archbishop of San Francisco is being included in the Chapter 11 filing, while maintaining that the filing will not include any of its parishes, schools or other entities. 

In another case involving a bankruptcy, the Teamsters union announced earlier this month that transport company Yellow Corp. told them it is shutting down and filing for bankruptcy, a week after the company reached an agreement with the Teamsters to avoid a strike. 

Were you or a loved one sexually assaulted or abused by a religious organization? You may qualify to join a free sexual abuse and assault lawsuit investigation. 

The Archdiocese of San Francisco is represented by Ori Katz and Jeannie Kim of Sheppard Mullin Richter & Hampton LLP, and Paul J. Pascuzzi of Felderstein Fitzgerald Willoughby Pascuzzi & Rios LLP.

The San Francisco Archdiocese bankruptcy case is In re: The Roman Catholic Archbishop of San Francisco., Case No. 23-30564, in the U.S. Bankruptcy Court for the Northern District of California. 

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