Mediations can still continue between the Baltimore Catholic Archdiocese and the creditors committee, which represents the interests of people seeing funds for child sexual abuse by the church, as the archdiocese’s bankruptcy case goes forward during the federal shutdown.
However, there is still uncertainty around other functions of the case if progress is made or if the case is dismissed.
Last week, the U.S. Trustee program, an arm of the Justice Department, told the U.S. Bankruptcy Court for the Maryland District that it would be unable to complete its work as long as the federal shutdown is in effect.
That revelation came as a survivor asked the Trustee program to join the creditors committee, but was told that the program would be unable to act until the shutdown ended.
In the meantime, other parts of the case that don’t involve the federal government can continue.
“Everything is being done by the creditors committee council and council for the debtors — the church and the insurance companies,” said Robert Jenner, a partner at Jenner Law, who represents survivors. “If the shutdown continues for some time, who knows what the next motion is going to be? And obviously that's disconcerting for survivors, because if they shut this whole thing down based on funding, it's going to be a complete mess.”
The Trustee Program is “responsible for overseeing the administration of bankruptcy cases and private trustees,” according to the Justice Department. “It has broad administrative, regulatory, and litigation/enforcement authorities whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders–debtors, creditors, and the public.”
It’s been two years since the Catholic Archdiocese of Baltimore filed for bankruptcy, forcing it to take account of its assets and file insurance claims to eventually pay survivors who were abused as children by clergy and staff.
The church attempted to invalidate abuse cases through archaic laws and constitutional challenges.
One survivor wrote about their frustration to U.S. Bankruptcy Court Judge Michelle 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.”
Theresa Lancaster, a lawyer representing victims, said the survivors are feeling the delays.
“They're not used to waiting so long,” she said “They've been treated like crap the entire time. So it's pretty low. Morale is low.”
In September, creditors representing the survivors of child abuse by the Baltimore Catholic Archdiocese asked Harner to dismiss the Church’s bankruptcy case after more than a year of failed mediation.
If approved, 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.
