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CV NEWS FEED // The Diocese of Oakland proposed a $117 million fund to settle hundreds of lawsuits over sexual abuse committed by priests, but victims’ attorneys quickly dismissed the plan, calling it “a scam.”
The November 8 proposal, part of the Diocese’s reorganization plan to emerge from Chapter 11 bankruptcy, aims to resolve approximately 350 lawsuits, according to a report from The Mercury News. The trust would be funded over several years, with an initial $65 million installment. It includes the title to a Livermore property, which the Diocese claims could add tens of millions of dollars in value.
The proposal comes amid a wave of lawsuits enabled by a three-year filing window that ended in late 2023, reviving claims that had previously expired due to the statute of limitations.
Victims’ attorneys criticized the plan, accusing the Diocese of undervaluing its assets to avoid paying more. Rick Simons, an attorney for survivors, called it an attempt to “cram down” a deal without survivor consent, labeling the payout as “pathetic,” The Mercury News reported.
Critics of the settlement noted that the sum would be far less than the $880 million reached last month by the Archdiocese of Los Angeles, which settled with more than 1,350 abuse victims.
In defending itself, the Diocese of Oakland emphasized that the trust could grow to between $43 million and $81 million when accounting for the Livermore property. Additionally, the Diocese proposed transferring all rights and interests of its insurance policies to the trust, potentially enabling abuse victims to seek compensation from the Diocese’s insurers.
Bishop Michael C. Barber said the plan provides a path forward for the Diocese while fairly compensating survivors. “We recognize that no amount of money can fully and satisfactorily compensate survivors for the abuse they suffered,” Bishop Barber stated in the proposal.
“Bearing that in mind,” he continued, “we believe the plan compensates survivors in a fair and equitable way and allows the Diocese of Oakland to set a path forward to continue to spread the Gospel, serving the faithful and the poor.”
However, attorneys representing victims argue that the value of the trust could erode over time due to inflation and delayed payments, causing further disadvantages for survivors. The attorneys called for greater transparency, urging the Diocese to sell more real estate holdings to ensure a fairer settlement.
“They’re prioritizing their own interests over that of the children that they harmed,” claimed Jennifer Stein, an attorney for numerous victims. “We believe they have the ability to pay significantly more,” she added.
