"Advocates for the victims hailed the ruling as an important way for their clients to finally have their day in court. It gives hope that victims of abuse will be freed from the constraints of this bankruptcy, and these efforts by the Catholic bishop to hide in the bankruptcy system, that conceals instead of reveals the painful truth, said Jeff Anderson, an attorney for scores of people claiming to have been abused."
"All this diocese is doing is spending money to avoid accountability, instead of letting it be revealed in the courtroom, Anderson added. In a statement Thursday, the diocese led by Bishop Michael C. Barber said it regrets a dismissal of its bankruptcy case could delay payments to survivors for years, yet added that it simply does not have the resources to continue in bankruptcy without any settlement prospects. The diocese claims to have spent $40 million pursuing reorganization through the bankruptcy court."
A federal bankruptcy judge granted the Roman Catholic Diocese of Oakland's request to dismiss its Chapter 11 case, allowing hundreds of sexual assault lawsuits to proceed to trial. Judge William J. Lafferty said the decision would not be official until a Nov. 12 hearing, leaving open the possibility of a last-minute settlement with about 350 plaintiffs. Diocese leaders said they lack resources to continue in bankruptcy without settlement prospects and warned a dismissal could delay payments to survivors for years, and said they have spent $40 million pursuing reorganization. Victims' advocates welcomed the dismissal as a path to courtroom accountability and accused the diocese of using bankruptcy to conceal abuses.
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