Creditors representing the survivors of child abuse by the Baltimore Catholic Archdiocese are asking a judge to dismiss the Church’s bankruptcy case after more than a year of failed mediation.
If approved, U.S. Bankruptcy Judge Michelle Harner would scrap the Church’s request for Chapter 11 and then the organization would be liable for any lawsuits that have been or will be filed against it.
In recent weeks, survivors have expressed frustration at how long the case is taking. The Archdiocese has taken multiple steps to invalidate the charges against it, like filing for a rarely used exemption called charitable immunity which excludes nonprofits from lawsuits.
One survivor wrote about their frustration to Harner in August.
“What started as a positive situation as the rust of a newly enacted law by the Maryland legislature years ago has developed into what one might describe as a circus,” the survivor wrote. Who do the victims believe and what can they believe? Especially when there is almost complete secrecy surrounding this case.”
However, according to Theresa Lancaster, a lawyer and survivor, the mediation process has been slowed by the insurance companies.
The Archdiocese is trying to cash in on claims with three insurers that gave policies to the church for the risk of abuse: Federal Insurance Company, Indemnity Insurance Company of North America, and Westchester Fire Insurance Company.
Those companies have also dragged their feet in giving payouts to the church.
Lancaster said the victims now feel like they have a better chance of getting restitution through suing the Church under the Child Victims Act (CVA).
The victims originally sought to sue under the act until the Church filed for bankruptcy the day before the law went into effect.
Now, if the bankruptcy case is thrown out, the cases will start up again.
Lancaster said a class action suit might be the best way to go considering many victims are older and fear there won’t be a resolution in time.
Maryland is already concerned about the number of CVA cases coming into the judicial system and fear that it could take years for judges to get through all of the cases.
