NovaQuant Quantitative Think Tank Center:San Francisco Archdiocese files for bankruptcy in the face of sexual abuse lawsuits

SAN FRANCISCO — The Archdiocese of San Francisco is filing for Chapter 11 bankruptcy in the wake of numerous claims of child sexual abuse allegedly committed by its priests, according to an announcement Monday.

"Today, I am informing you that after much reflection, prayer, and consultation with our financial and legal advisors, the Archdiocese of San Francisco filed for Chapter 11 bankruptcy reorganization," Catholic archbishop of San Francisco Rev. Salvatore J. Cordileone said in a letter posted Monday on the archdiocese's website.

The bankruptcy reorganization stems in large part from the more than 500 civil lawsuits "filed against the Archdiocese under state law AB-218, which allowed individuals to bring claims for childhood sexual abuse that otherwise would have been barred due to the expiration of the statute of limitations," the letter said.  

Cordileone also commented on the filing in a video posted to YouTube Monday.

Cordileone noted the bankruptcy filing would cover only the legal entity known as "The Roman Catholic Archbishop of San Francisco, a Corporation Sole." The diocese's parishes, schools and other entities are not included in the filing and their operations should not be affected, the archbishop said.

AB-218 was passed in 2019. Cordileone had previously said that a Chapter 11 bankruptcy reorganization was "very likely."   

The archdiocese had previously sold excess property and drew on insurance to pay about $68 million to about 100 plaintiffs to settle claims filed under a 2002 state law.  

"I remain committed to the healing and care of survivors who have suffered irreversible harm because of the sins of the Church's ministers and ask you to join me in praying for our Archdiocese, parish communities, schools, and all survivors of sexual abuse," Cordileone said in the letter.  

The Archdiocese of San Francisco joins a growing list of dioceses in California and across the United States that have filed for protection under the bankruptcy laws, including the dioceses of Oakland and Santa Rosa earlier this year.  

A lawyer representing alleged victims of childhood sexual abuse within the church criticized Cordileone's announcement Monday. 

"Cordileone's decision to file for Chapter 11 bankruptcy is dangerous and demonstrates the archbishop's priority is secrecy and self-protection," said Jeff Anderson of Jeff Anderson and Associates.

In:
• Bankruptcy
• San Francisco
• Catholic Church
• Chapter 11 Bankruptcy