Diocese of Oakland Settles Abuse Claims for $200M

Diocese of Oakland Settles Abuse Claims for $200M

Introduction

The Diocese of Oakland, California, has announced it will pay up to $200 million to settle hundreds of abuse claims filed against it.

Formal proposal

A formal proposal was filed in bankruptcy court this week, creating a survivors’ trust intended to provide between $160 million and $198 million to approximately 345 claimants.

Contributions to the settlement

The diocese plans to contribute just over $100 million directly, while an additional $81 million would come from its real estate assets. Roman Catholic Welfare Corporation/Schools (RCWC) will contribute $14.25 million, along with potential additional funding from other entities.

Bankruptcy move

The diocese declared bankruptcy in May 2023 after hundreds of lawsuits were filed under California’s three-year legal window. This rule, enacted by the state Legislature in 2019, allowed victims of child sexual abuse to bypass the standard statute of limitations and sue for claims they otherwise would have missed.

Bishop's statements

Oakland’s Bishop acknowledged that navigating this process was “an extremely difficult challenge” but emphasized the diocese's commitment to “honor our obligation to survivors.” The bishop added, “No amount of money can fully or satisfactorily compensate survivors, but this plan offers fair and equitable compensation while allowing us to move forward with our mission to spread the Gospel and support the poor.”

Initial contribution

The initial contribution to the trust would be $63 million in cash, followed by $10 million per year for the next four years. RCWC’s contributions would add to this funding.

Criticism of the settlement

However, advocates and attorneys criticized the proposed settlement as insufficient. A member of the Survivors Network of those Abused by Priests labeled the offer as “pretty pathetic” and “pretty low.” They argued that the diocese owns 82 parishes and is estimated to have $3 to $4 billion in real estate assets, which could provide more robust compensation.

Scam and sham

An attorney representing survivors in California and other states alleged the reorganization plan is a “shell game” intended to suppress victims’ voices and avoid accountability. The attorney called it “a scam and a sham” while accusing the diocese of attempting to force survivors into accepting the plan without proper consent.

Diocese's stand

Despite these criticisms, the diocese maintained its commitment to preventing future abuse. In official filings, they declared that “the abuse of children and vulnerable adults has no place in the Diocese of Oakland or the Roman Catholic Church” and pledged to take every possible step to prevent such conduct in the future.

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