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PRESS RELEASE -- Friday, March 10, 2023
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March 10, 2023
PRESS RELEASE -- Friday, March
Statement from Bishop Robert F. Vasa
In December of 2022, the Diocese of Santa Rosa announced that it had looked into the possibility of declaring chapter 11 bankruptcy and that after months of careful and prayerful consideration, after having consulted the priests of the Diocese as well as the Diocesan Finance Council, andprofessi onals retained by the Diocese, it was clear that such an acti on was necessary. Now after spending several more months in the preparation of the voluminous documents required for this filing, the Diocese plans to submit its petition to the court on Monday, March 13, 2023. As we noted in December, this decision was made necessary due to the number of child sexual abuse lawsuits filed against the Diocese over the course of the past three years. These cases are too numerous to settle individually and so they have accumulated until the closing of the three-year window. Now that the window is closed, we have received notice of at least 160 claims and we have information that perhaps more than 200 claims have been filed in total against the Diocese.
It must be remembered that in 2003 the Diocese facedpleted, with insurance for many of the
This is a most troubling action but it is one which the circumstance in which we find ourselves requires. This is not an arbitrarily chosen action; it is the necessary result of the number of claims which are now pending against the Diocese, more than 115 of which date back more than 30 years. I remain convinced, however, that this path will allow us to achieve two very important goals. First, it will provide a process to carefully evaluate and compensate, as fairly as possible those who have come forward with allegations of sexual abuse. Chapter 11 is a process designed to bring all parties together in one place to resolve difficult claims fairly and finally, under the supervision of thebankruptcy court. A bankruptcy allows the Diocese to deal with all these issues collectively rather than one at a time. At the same time, the process provides a way for the Diocese to continue the various charitable ministries in which it is engaged.
It is important to remember that the only entity filing for bankruptcy protection is the corporation sole known legally as the Roman Catholic Bishop o f Santa Rosa. The parishes and Catholic schools within our Diocese are separate civil corporations or separate ecclesial entities and should not be parties to this filing. There are many matters to be d iscerned by the bankruptcy court and so absolute certainty about the degree of participation by any other entities such as parishes and schools will be determined in the course of the proceedings. The Diocese and its various parishes continue to be vigilant in fostering safe environments for all of our children, in screening all employees and volunteers and in periodically reviewing our Diocesan Policy for the Protection of Children and Youth. These things have been done for the past twenty years and it is our prayer that children are actually kept safer now than in the past and that all in our pews are more aware and vigilant about potential risks. Nevertheless, we are deeply saddened that so many have endured abuse in the past and that the scourge of child sexual abuse is a part of our diocesan history. The present action of the Diocese is necessary and through this process we hope to provide for those who have come forwar d and who are yet to come forwar d at least some compensation for the harms they have endured.
While I have been anticipating this action for more than a full year, it is most distressing to have the duty of actually proceeding with this filing. Nevertheless , I remain convinced that it is a necessary step for the Diocese and the only way to resolve the claims which have been presented against it.
I provide a Q and A which responds to anticipated questions which may arise. I continue to be encouraged by the understanding, patience and support expressed by the clergy and by the various people in the Church with whom I have previously shared this information. I am deeply grateful. Office of the Bishop
Phone: (707) 566-3325
Email: BpVasa@SRDiocese.org
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Diocese of Santa Rosa
P.O. Box 1297
Santa Rosa, California 95402
MARCH 10, 2023
Diocese of Santa Rosa Q&A
Dear People of the Diocese ofSanta Rosa,
As we announced in December ofeorganization has become necessary for the Diocese inli cght of the reopening of the st atute of limitations for abuse nths of preparationthe Diocese hapter 11 proceedings. The current plan is to file with the court on Monday, March 13,2023.
While answering all possible questions is not feasible, we do want to provide, in this Q and A, responses to a number of the common questions that may arise. We ask for God's grace and wisdom in this challenging time.
Why is the Diocese of Santa Rosa reorganizing under chapter 11?
A: After much consideration, prayer, and discernment about the current situation, we have come to the conclusionthat we will be unable to meet h the resources that we have. The am ounts of money being sought far outweigh our current resources.
The chapter 11 reorganizationprocess is the only way that we can see to continue the operation of our ministries, continue to support our Catholic community, and address claims in a fair and equitable manner. The process will allow us to handle all the claims in a collective process. We believe that this process will also allow us to pursue gr eater financial stability into
How can a Diocese be bankrupt?
A: The Diocese of Santa Rosa has a budget just like every other organization and we have the funds to continue our normal operations and some investments for any out of the ordinary need. However, the claims that we are currently facing are much more than our financial resources. Our financial statements are posted on our website for anyone to review. Though there is no set figure, in general claimants often seek large judgments. We have received notice of 160 claims and we have information that perhaps more than 200 claims have been filed against the Diocese. We do not have the resources to adequately deal with this volume of cases.
How did this situation happen?
A: Sadly, we have had priests, religious, and lay persons commit evil and immoral acts against the youth which were of a sexual nature. We know that those who have been harmed in these ways may never be fully healed. No one can undo what was done to them. In California, a survivor of abuse has until the age of forty (40) to file a claim for damages. However, beginning January 1, 2020, the State of California created a special three-year window in the statute of limitations for such lawsuits. That window closed on the 2nd of January, 2023. A look back window means that people can sue for damages even though the statute of limitations had already expired. Some of the incidents for which present lawsuits are allowed occurred as long as sixty years ago. During this three year look back window, many people have come forward.Some have come to the Chancery wanting their story to be heard. Some request financial assistance. Others have decided to file lawsuits.
Didn't this happen before?
A: Yes, in 2003 the State of California did create a similar look backions for such harm. At the tim 2003. California decided to do a sece, the Diocese did have a numb er of claimants come forward, but we ation financially. This time i s different, mostly because of t he higher number of cases. Fur ther, Diocesan resources were severely impacted in ond look back window,because t first one did not allow people to sue schools or hospitals for such abuse. This time, people can sue those institutions as well as the Church.he
Couldn't this happen again?
A: Yes, the State of California could create more look back windows or even propose to eliminate the statute of limitations entirely for these types of crimes. At the present time the statute in California gives persons who were harmed as children until the age of 40 years to sue for damages, or five years after they realized that those childhood events caused harm.
Previously, survivors had until they reached the age of 28 years.
However, people cannot bring forward lawsuits of this nature 11 reohis reorganization. This isthe ' protection' provided by bankru ptcy. Part of a chapter rganization is the establishment of a date prior to which claims may not be brought. It ise claimants to the table at on ce and negotiate anagreement that works for all parties. A thorough pr ocess is required, and will be lic of this action and to assure that o file claims.
Isn't there some other way out
A: We have studied other waysof handling the situation, butt would allow us to fairly ando those who have been harmed. This type of reorganization wi ll allow us to examine what istiffs' attorneys. This is the only way to get all of the par ties together to generate an agreement to bring
What will bankruptcy provide for the claimants?
A: It will allow their claimsto be evaluated fairly and hon presided over by a judge and worked out with their attorneys. All those who have come forward will be represtly in a legal process that will be esented in this process and will have a voice. This ists to claimants while balancing the reality of what theDioce se possesses and the nature of
How does this process work?
A: Representatives of the Diocese, representatives of claimants, representatives of insurance companies, and a mediation judg e will negotiate together to e stablish what is possible for the Diocese to provide. Eventually, the parties agree on something hat is within the Diocese's ability to provide. This is what is known as the settlement fund. The settlement closes of f the process. After that date, the Diocese could only beliable to pay more for events that occur after the bankruptcy. Lawsuits for occurrences prior to that date would be prohibited, but claimants would be able to present new claims to the settlement f und. During the reorganization process, we anticipate that the Diocese will be able to continue general operations, though we know that there will be some areas of ministry affected more than others. During this process, the financial state of the Diocese will be assessed by outside experts who will be able to ascertain a full picture of what can happen. The Diocese will negotiate a settlement that is within our capacity to accomplish.
During this time, the Diocese's normal financial transactions will continue, however, we will need to get permission from the court for anything that is out of the ordinary. We have spoken to people in leadership positions from other dio ceses that have gone through t his process. In nearly all cases, their ministries were not affected greatly and disruptions to parish operations were minimal.
Will parishes or schools be forced to close because of this process?
A: In filings by other dioceses, creditors have challenged the status of these separate corporations. That is why our pastors and other religious entities of the Diocese have sought independent legal counsel to represent parish interests in this process.
