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Update from Bishop Stephen Blaire
on Bankruptcy Filing by the Diocese of Stockton as of March 28, 2014
The Diocese of Stockton has asked the bankruptcy court to appoint an advocate for victims of sexual abuse who have not yet filed a claim, and to approve the diocese’s plan for notifying abuse victims and others of the need to submit claims forms before court-approved deadlines.
The requests came in a pair of filings submitted March 26. In the first, the entity filing bankruptcy, known legally as the Roman Catholic Bishop of Stockton, seeks court approval of a series of deadlines for the submission of claims, as well as approval of the forms to be used and the diocese’s plan for notifying potential claimants of the claims process.
In bankruptcy proceedings, it is essential for all parties involved to understand as thoroughly as possible what claims will be made in order to administer the assets as fairly as possible. It is therefore necessary to fix certain dates by which claims must be filed.
In its filing, the Roman Catholic Bishop of Stockton sought approval for a deadline of May 22, 2014 for submission of ordinary, general claims by creditors. For creditors that are governmental bodies, the diocese suggested a “bar date” of July 14, 2014, in keeping with regulations allowing governmental claimants 180 days from the time bankruptcy is filed.
For claims arising from sexual abuse, however, the diocese is asking the court for an extended period in which the claim forms may be submitted. Those who believe they have a claim for abuse have an additional 85 days beyond the bar date for general claimants. If approved by the court, this date would be Aug. 15, 2014.
The filing also seeks approval of the forms to be used by potential claimants. Those submitted by the diocese are based on those used in other diocesan bankruptcy cases. Forms submitted for claims of abuse are to be treated confidentially and not available to the general public, unless the claimant elects otherwise. Other precautions to keep this information confidential include requiring those who do have access, such as insurers providing claims coverage, to agree to strict confidentiality terms.
The motion also seeks court approval of a planned outreach to potential claimants, including victims of sexual abuse who have not yet filed a claim.
For general claimants, the submitted plan calls for mailing letters of notice to all known parties holding claims, as well as to the U.S. Trustee and all those who have requested special notice in the case.
For potential claimants in cases of abuse, the diocese plan calls for a much more extensive outreach. Under the proposed plan, the Roman Catholic Bishop of Stockton would:
Mail the claim form and information to all known claimants;
Mail notice of the claims deadline to every household on each parish’s mailing list;
Mail notice to every individual on an alumni mailing list for a parish school;
Post notice of the claims bar date and the claim form on the diocese website (www.stocktondiocese.org) as well as on the websites of the diocese’s legal counsel and any website created by the Creditors Committee.
Seek to post the form and notice on the website of Survivors Network of those Abused by Priests and other victims’ advocacy groups;
Publish advertisements of the notice in USA Today;
Publish advertisements in 11 daily newspapers that cover the region and the state, including the Los Angeles Times, the Stockton Record, the Modesto Bee and others;
Publish advertisements in 12 weekly newspapers serving the local communities within the diocese;
Publish advertisements in two Spanish-language newspapers serving the region;
Place bi-weekly notices in the bulletins of each parish within the diocese;
Ask each parish and mission within the diocese to post a flyer of the notice in a prominent location; and,
Issue a nationwide press release via a national wire service.
In the second motion, the Roman Catholic Bishop of Stockton asked the court to appoint a legal representative to guard the interests of certain abuse claimants such as minors. This “future claims representative” would make court appearances and act on behalf of those who are considered minors under the laws governing sexual abuse claims and those who have not yet come to understand that they may have a claim for abuse or the need to file a claim in the reorganization process.
A hearing on both motions is schedule for April 30 in U.S. Bankruptcy Court.
To read the motions, or to see any of the documents filed with the court, visit www.ffwplaw.com. After clicking “cases” in the left margin, you may login with the user email as [email protected] and the password of password. After login, click the link for The Roman Catholic Bishop of Stockton and select the document you would like to view.