Archbishop. Good to see you. Good to see you, Jason. You have made *** tough decision. Uh And I think it, some folks had anticipated it. Uh And it’s in filing bankruptcy. Describe to me the decision making uh from the church’s standpoint. Well, with the passage of the uh law last spring in the General assembly and signed by the governor that eliminated statutes of limitations entirely for civil claims arising from child sexual abuse. Um We knew we faced uh *** really difficult situation that we would be likely the recipient of many, many lawsuits more than we could handle financially. Um So we began looking at options. Um We realized if we tried to litigate them individually, uh that we would uh very quickly run out of resources, the first few would be compensated, but no one else would be compensated. I also had to look at keeping the church going. And so um we looked at chapter 11 as the best way to um compensate as many victim survivors as possible equitably. And at the same time to sustain the ministries of the archdiocese of our schools, parishes and charities. And uh I consulted widely difficult decision. But I also know this is *** difficult decision for the victim survivors. I think when people hear bankruptcy and we hear chapter 11 all the time, you think about, you know, *** big box store, they may do it at *** grocery store and you can you blink an eye and it’s no big deal. Uh When you hear the church doing it, it’s, it’s *** heart and soul matter. Can you understand that? For some folks, this is tough like this is *** hard news to hear. Absolutely. It’s *** difficult decision and I’m sure it is hard news to hear. I would make *** distinction though, when we hear the word bankruptcy, we often think of what’s called Chapter seven and that’s when uh entity uh liquidates and sells all its assets uh to satisfy creditors. Uh Chapter 11 is *** different kind of *** process. Uh It’s *** process uh whereby all of the those concerned ultimately come together around the table for negotiations. They’re difficult, they’re painful. They last *** while, but at the end of the day, hopefully *** plan uh is agreed upon um approved by the court and it enables uh those who have been harmed to receive at least some compensation and it enables uh the church um to move forward but never forgetting of the pain of those who have been harmed for some. They’ll say it’s not good enough. And I, and I’ll read you the line that I was reading an article, *** gentleman from Snap and he’s saying that this undermines the legislation that’s coming forward. Now, as you were talking about earlier, lifting the statute of limitations. And I guess I’d like ***, *** response to that. Do you think that this is *** work around um, to what assets the church has? Uh, it is not at all *** work around. Um, as I mentioned earlier, if we were to litigate only *** few victim, survivors could be um compensated. In spite of what you might read or hear. The resources of the church really are, are finite. They are not unlimited and what we do have, we are using uh for ministries to educate the young. We’re using them to support our parishes, we’re using them uh to do charity that extends far beyond the church and many in our community um depend upon that. Um I recognize that there is no perfect solution here but looking at the options uh and consulting many people in the clergy and the I came to the conclusion that this was the best path forward for the person who goes to church every Sunday or goes to *** Catholic school. Will they notice *** difference in how the church serves them throughout this process? Um The hope is and the intent is um that they will not notice *** difference that our parishes, schools, charities will continue to do their very, very good work. And that what people give to support, these ministries will continue to go to support those ministries um to come up with the um compensation. We will uh likely use um unrestricted or long term assets and we will use insurance proceeds as well. Describe that for some folks who don’t understand what unrestricted assets are. So, um man, in the archdiocese, many of our resources are directed specifically to specific ministries. Um but there are some assets that are more unrestricted, they can be used in, in whatever way is deemed appropriate for the mission. Those are likely the assets that will be in play together with insurance proceeds. I’ll take you back to the same press conference. I was quoting earlier and, and part of it was the number of names, seven of them, I believe um that will stay uh redacted, but we may not know forever. Is there *** chance that we will know those names? And if not, why is it important to keep them shielded? I think the point here is that um, well, we certainly supported the release of the Attorney General’s report. These individuals who are not abusers but who made decisions uh were never approached uh by the Attorney General’s office, never given any opportunity uh to, to share their side of the story, um not even notified, to tell you the truth and they themselves decided that they wanted um *** fairer process and that’s why they have litigated. And I think their claim is valid and that’s why we’ve supported it. Last question for you and, and curious for church as *** whole, uh whether you’re *** victim or survivor part of the flock or if you’re part of the clergy getting through the last 10 years, say, uh and, and, and moving into the future for the Catholic church. How, what is that like right now? Because I, it has to be tough uh talking to the flock through things that are just not dining room, table material. It’s difficult. Uh Nothing goes against what the church believes teaches stands for more than abusing *** child. Nothing is more antithetical than that. Uh And it’s *** painful subject for everybody, most, especially for those who’ve been harmed. Um What the church has done over decades is to have reported all incidents of that came to us about child sexual abuse, to the attorney general and to all the authorities, we have taken dramatic steps to eliminate this from our ranks with zero tolerance uh with training formation background checks, an independent review board to look over our shoulder. Sure, we’re doing the right thing and many, many other steps as well. And uh if you trace the uh number of incidences, they peaked in the seventies and, and since the eighties have gone down to almost nothing now, that doesn’t mean we’re resting on our laurels or being any less vigilant. I think what we can say though is that over decades, this archdiocese, um, which has also released the names of abusers the second in the country to do so has made *** bedrock commitment to go forward in *** far better way than we have in the past. And, uh, my commitment has redoubled, um, with the process we are now going through and just to go back to this whole process. Are you, are you prepared for October? Are you prepared for when more folks may come looking for answers from you as far as litigation goes? Um We are prepared as well as we can be prepared. Um We could see that it would be coming and we uh began to prepare um months and months ago. Archbishop. Thank you. Thank you.

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Archdiocese of Baltimore files for Chapter 11 bankruptcy amid potential child sex abuse lawsuits

Archbishop says bankruptcy protection will allow church to ‘equitably compensate’ clergy sexual abuse victim-survivors

The weeks of speculation are over after the Archdiocese of Baltimore on Friday filed for Chapter 11 bankruptcy protection as it faces a potential for child sexual abuse lawsuits.Exclusive 11 News video above: Interview with Baltimore Archbishop William Lori “I recognize that there is no perfect solution here, but looking at the options and consulting many people in the clergy and the laity, I came to the conclusion that this was the best way forward,” Archbishop William Lori told 11 News in an exclusive interview on Friday. “It’s a difficult decision and I’m sure it’s hard news to hear.”This action comes days before a new Maryland law takes effect that eliminates the statute of limitations for victims of sexual abuse to file lawsuits. It also raises a cap on noneconomic damages to $1.5 million per incident, and it does not cap economic or punitive damages.”With the passage of the law last spring in the General Assembly and signed by the governor that eliminated statutes of limitations entirely, civil claims are rising from child sexual abuse, we knew we faced a really difficult situation. We would be likely the recipient of many, many lawsuits, more than we could handle financially,” Lori told 11 News. The archbishop told 11 News that if the archdiocese didn’t file for bankruptcy protection, victim-survivors would sue the church for huge amounts until it runs out of money, leaving others empty-handed.In a letter released Friday, Lori wrote that this action will allow the archdiocese to “equitably compensate” victim-survivors of child sexual abuse and keep the church operating.”I acknowledge that no apology, compensation, or knowledge of our present-day accountability measures will necessarily lead to healing for victim survivors, nor repair the harm they suffered,” Lori wrote in the letter. “Staggering legal fees and large settlements or jury awards for a few victim-survivors would have depleted our financial resources, leaving the vast majority of victim-survivors without compensation, while ending ministries that families across Maryland rely on for material and spiritual support.”Lori said the archdiocese expects the bankruptcy court to accept claims from victim-survivors, and a negotiation process will determine how they will be compensated.”We realized if we tried to litigate them individually, that we would very quickly run out of resources. The first few would be compensated but no one else would be compensated,” Lori told 11 News.The archdiocese announced in a letter released earlier in September that church officials were considering filing for bankruptcy.”Nothing goes against what the church believes, teaches, stands for more than abusing a child. Nothing is more antithetical than that, and it’s a painful subject for everybody, most especially for those who have been hurt,” Lori told 11 News.Bankruptcy lawyer explains what this means for survivorsEric Steiner, a lawyer who specializes in bankruptcies, explained to the 11 News I-Team that filing for Chapter 11 bankruptcy, in this case, is likely a strategic move by church officials.”It is often used when the liabilities outweigh the assets, which seems to be the case,” Steiner said. “So, it can be an efficient way to resolve claims, and obviously, the archdiocese is going to want to pay as little as possible versus the creditors that want more. So, really, the court’s job is to balance the interests of both sides.”Video below: The I-Team’s interview with attorney Eric Steiner Steiner said that if the archdiocese is allowed to file for bankruptcy, the details of the agreement will be key. He said the archdiocese will likely try to keep the pot of money for payouts as small as possible. By entering into bankruptcy protection, the archdiocese could avoid future claims for past cases of abuse, if a plan is approved by the bankruptcy court. Steiner said filing for this type of bankruptcy acts as a legal shield for the church. “So, every claim as of a date the archdiocese files for bankruptcy, all claims before that would be cut off,” Steiner said. “What’s called the automatic stay … protects the archdiocese while it’s in bankruptcy. Those claims can no longer be brought in state court or whatever other court. It has to be addressed in the bankruptcy court. The automatic stay is essentially the legal shield. It protects entities, people that file for bankruptcy, and it’s a unique facet of bankruptcy.”Steiner said he would expect the archdiocese to ask the judge overseeing the bankruptcy case to require that each victim-survivor receive the same dollar amount. In the archbishop’s announcement, he used the term “equitably” to describe the payouts three different times. “I think that’s going to depend on what that plan looks like. How much is going to be devoted towards the victims?” Steiner said.Steiner said if the archdiocese’s request to file for bankruptcy protection is approved, a judge will accept claims from victim-survivors for a certain period of time, and the archdiocese will put money into a trust fund for compensation. Steiner said the end result is that the archdiocese will likely have to pay out less money to victim-survivors: “Otherwise, they wouldn’t be filing Chapter 11.”Victim-survivors respondMike McDonnell, the interim executive director of the Survivors Network of those Abused by Priests, released a statement Friday afternoon, saying: “Catholic bishops are employing the same deception from coast to coast. Cover up child sex offenses while maintaining the ministry of the abusers. Next, oppose any modifications to the statute of limitations that might make those offenses more visible. Finally, go to federal bankruptcy courts and act as though you have run out of money when secular laws offer a window to justice. When will church officials make true amends?”At a news conference on Thursday in front of the Baltimore Basilica, adult victim-survivors with SNAP called on others to come forward. The group called out the archbishop for refusing to reveal the names of clergy and church officials that are still secret and for threatening to file for Chapter 11.Video below: Clergy sex abuse victims spread word about new law (Thursday)WBAL-TV 11 News asked the archbishop about the recent report released by the Maryland attorney general that added more names to the list of accused abusers as it related to the archdiocese’s decision to keep some names hidden from the public.”I think the point here is that while we certainly support the release of the attorney general’s report, these individuals were not abusers, but made decisions, but were never approached by the attorney general’s office, never given any opportunity to share their side of the story, not even notified, to tell you the truth, and they themselves decided they wanted a fear of process, and that’s why they have litigated. I think their claim is valid and that’s why we support it,” Lori told 11 News.SNAP members called the church’s bankruptcy talk a ploy.”What the diocese is doing by filing for bankruptcy is effectively short-circuiting the will of the Maryland Legislature and the people of Maryland. That should have a chilling effect, the fact that they are working their way around the will of the people,” David Lorenz, with Maryland SNAP, said Thursday.The archbishop told 11 News that filing for bankruptcy protection is neither a ploy nor an attempt to undermine legislation. He said there is no perfect solution but found it to the best path forward.”It is not a workaround. If we were to litigate, only a few victim-survivors could be compensated,” Lori told 11 News. “In spite of what you might read or hear, the resources of the church really are finite. They are not unlimited. What we do have, we are using for ministries, to educate the young, to support our parishes, using them to do charity that extends far beyond the church that many in our community depend upon.”On its website, the Archdiocese of Baltimore noted that 25 diocese and seven archdioceses have filed for Chapter 11 bankruptcy across the country. The Catholic Diocese of Harrisburg has already filed for Chapter 11 protection. In that case, church officials set aside $7.5 million in a trust fund, insurers kicked in another $11 million and a trust administrator handled the money.

BALTIMORE —

The weeks of speculation are over after the Archdiocese of Baltimore on Friday filed for Chapter 11 bankruptcy protection as it faces a potential for child sexual abuse lawsuits.

Exclusive 11 News video above: Interview with Baltimore Archbishop William Lori

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“I recognize that there is no perfect solution here, but looking at the options and consulting many people in the clergy and the laity, I came to the conclusion that this was the best way forward,” Archbishop William Lori told 11 News in an exclusive interview on Friday. “It’s a difficult decision and I’m sure it’s hard news to hear.”

This action comes days before a new Maryland law takes effect that eliminates the statute of limitations for victims of sexual abuse to file lawsuits. It also raises a cap on noneconomic damages to $1.5 million per incident, and it does not cap economic or punitive damages.

“With the passage of the law last spring in the General Assembly and signed by the governor that eliminated statutes of limitations entirely, civil claims are rising from child sexual abuse, we knew we faced a really difficult situation. We would be likely the recipient of many, many lawsuits, more than we could handle financially,” Lori told 11 News.

The archbishop told 11 News that if the archdiocese didn’t file for bankruptcy protection, victim-survivors would sue the church for huge amounts until it runs out of money, leaving others empty-handed.

In a letter released Friday, Lori wrote that this action will allow the archdiocese to “equitably compensate” victim-survivors of child sexual abuse and keep the church operating.

“I acknowledge that no apology, compensation, or knowledge of our present-day accountability measures will necessarily lead to healing for victim survivors, nor repair the harm they suffered,” Lori wrote in the letter. “Staggering legal fees and large settlements or jury awards for a few victim-survivors would have depleted our financial resources, leaving the vast majority of victim-survivors without compensation, while ending ministries that families across Maryland rely on for material and spiritual support.”

Lori said the archdiocese expects the bankruptcy court to accept claims from victim-survivors, and a negotiation process will determine how they will be compensated.

“We realized if we tried to litigate them individually, that we would very quickly run out of resources. The first few would be compensated but no one else would be compensated,” Lori told 11 News.

The archdiocese announced in a letter released earlier in September that church officials were considering filing for bankruptcy.

“Nothing goes against what the church believes, teaches, stands for more than abusing a child. Nothing is more antithetical than that, and it’s a painful subject for everybody, most especially for those who have been hurt,” Lori told 11 News.

Bankruptcy lawyer explains what this means for survivors

Eric Steiner, a lawyer who specializes in bankruptcies, explained to the 11 News I-Team that filing for Chapter 11 bankruptcy, in this case, is likely a strategic move by church officials.

“It is often used when the liabilities outweigh the assets, which seems to be the case,” Steiner said. “So, it can be an efficient way to resolve claims, and obviously, the archdiocese is going to want to pay as little as possible versus the creditors that want more. So, really, the court’s job is to balance the interests of both sides.”

Video below: The I-Team’s interview with attorney Eric Steiner

Steiner said that if the archdiocese is allowed to file for bankruptcy, the details of the agreement will be key. He said the archdiocese will likely try to keep the pot of money for payouts as small as possible.

By entering into bankruptcy protection, the archdiocese could avoid future claims for past cases of abuse, if a plan is approved by the bankruptcy court. Steiner said filing for this type of bankruptcy acts as a legal shield for the church.

“So, every claim as of a date the archdiocese files for bankruptcy, all claims before that would be cut off,” Steiner said. “What’s called the automatic stay … protects the archdiocese while it’s in bankruptcy. Those claims can no longer be brought in state court or whatever other court. It has to be addressed in the bankruptcy court. The automatic stay is essentially the legal shield. It protects entities, people that file for bankruptcy, and it’s a unique facet of bankruptcy.”

Steiner said he would expect the archdiocese to ask the judge overseeing the bankruptcy case to require that each victim-survivor receive the same dollar amount. In the archbishop’s announcement, he used the term “equitably” to describe the payouts three different times.

“I think that’s going to depend on what that plan looks like. How much is going to be devoted towards the victims?” Steiner said.

Steiner said if the archdiocese’s request to file for bankruptcy protection is approved, a judge will accept claims from victim-survivors for a certain period of time, and the archdiocese will put money into a trust fund for compensation.

Steiner said the end result is that the archdiocese will likely have to pay out less money to victim-survivors: “Otherwise, they wouldn’t be filing Chapter 11.”

Victim-survivors respond

Mike McDonnell, the interim executive director of the Survivors Network of those Abused by Priests, released a statement Friday afternoon, saying: “Catholic bishops are employing the same deception from coast to coast. Cover up child sex offenses while maintaining the ministry of the abusers. Next, oppose any modifications to the statute of limitations that might make those offenses more visible. Finally, go to federal bankruptcy courts and act as though you have run out of money when secular laws offer a window to justice. When will church officials make true amends?”

At a news conference on Thursday in front of the Baltimore Basilica, adult victim-survivors with SNAP called on others to come forward. The group called out the archbishop for refusing to reveal the names of clergy and church officials that are still secret and for threatening to file for Chapter 11.

Video below: Clergy sex abuse victims spread word about new law (Thursday)

WBAL-TV 11 News asked the archbishop about the recent report released by the Maryland attorney general that added more names to the list of accused abusers as it related to the archdiocese’s decision to keep some names hidden from the public.

“I think the point here is that while we certainly support the release of the attorney general’s report, these individuals were not abusers, but made decisions, but were never approached by the attorney general’s office, never given any opportunity to share their side of the story, not even notified, to tell you the truth, and they themselves decided they wanted a fear of process, and that’s why they have litigated. I think their claim is valid and that’s why we support it,” Lori told 11 News.

SNAP members called the church’s bankruptcy talk a ploy.

“What the diocese is doing by filing for bankruptcy is effectively short-circuiting the will of the Maryland Legislature and the people of Maryland. That should have a chilling effect, the fact that they are working their way around the will of the people,” David Lorenz, with Maryland SNAP, said Thursday.

The archbishop told 11 News that filing for bankruptcy protection is neither a ploy nor an attempt to undermine legislation. He said there is no perfect solution but found it to the best path forward.

“It is not a workaround. If we were to litigate, only a few victim-survivors could be compensated,” Lori told 11 News. “In spite of what you might read or hear, the resources of the church really are finite. They are not unlimited. What we do have, we are using for ministries, to educate the young, to support our parishes, using them to do charity that extends far beyond the church that many in our community depend upon.”

On its website, the Archdiocese of Baltimore noted that 25 diocese and seven archdioceses have filed for Chapter 11 bankruptcy across the country. The Catholic Diocese of Harrisburg has already filed for Chapter 11 protection. In that case, church officials set aside $7.5 million in a trust fund, insurers kicked in another $11 million and a trust administrator handled the money.