San Diego Roman Catholic diocese ponders bankruptcy with sex-abuse lawsuits pending

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San Diego Roman Catholic diocese ponders bankruptcy with sex-abuse lawsuits pending
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The diocese is facing of hundreds of lawsuits alleging sexual abuse by clergy. It would be the second time the diocese has sought the protections of the courts.

The Roman Catholic Diocese of San Diego is warning it may have to file bankruptcy in the future because of the potential fallout from hundreds of pending lawsuits alleging sexual abuse by clergy over the past 75 years.

Cardinal Robert McElroy delivers a sermon during a Pentecost Mass for All Peoples at Cathedral Catholic Hight School on June 4, 2022. At the briefing, Eckery could not say when or if the diocese would file for bankruptcy. He said such filing was not imminent and gave a time frame of late spring or summer for any possible decision by McElroy.Filing for bankruptcy prompts an immediate halt to any lawsuits against the person or entity filing for bankruptcy protection. That stay remains in effect for the duration of the bankruptcy.

Eckery said the majority of the claims date from 50 to 75 years ago, and no cases have been filed alleging abuse by a clergy member this century. No current priests are named in the suits, he said. “Why didn’t they transfer those assets in 2010?” he asked. The suit will argue the diocese was simply trying to divest itself of assets to separate corporations, thereby lowering the amount of money available to plaintiffs.

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