Catholic Archdiocese of Baltimore Files for Bankruptcy Protection Ahead of New State Law on Child Sexual Abuse Victims’ Lawsuits
The Catholic Archdiocese of Baltimore has filed for bankruptcy protection just days before a new state law allowing victims of child sexual abuse to sue institutions goes into effect. The bankruptcy filing will halt all lawsuits against the Archdiocese, shifting legal action to a bankruptcy court. This process will establish a permanent end-date for alleged victims of church abuse to file claims, limiting the potential damages some survivors may receive while offering a more equitable distribution of the Archdiocese’s assets.
Legal analysts have commented that each diocesan bankruptcy is unique and the outcome will depend on various factors such as the court, insurance arrangements, and the diocese’s legal setup. Survivors and their advocates have expressed concern that filing for bankruptcy will deny them the opportunity to tell their stories in court and seek justice. However, proponents argue that the bankruptcy process will establish a deadline for creditors, including survivors, to file claims.
The bankruptcy filing came shortly after two women publicly announced their plans to file complaints against the archdiocese for allegedly being raped as children, with the archdiocese allegedly turning a blind eye to the abuse. The impact of the bankruptcy filing on its parishes and ministries remains uncertain, as does the issue of who will pay the damages.
Baltimore is the 36th Catholic diocese in the United States to file for bankruptcy protection since the clergy sex abuse crisis emerged in the early 2000s. The filing follows years of legal disputes between state officials and the archdiocese over the legal recourse available to abuse survivors. In April, the Maryland General Assembly passed the Child Victims Act, which removes any statute of limitations for child sexual abuse victims and allows them to seek civil damages from institutions.
Maryland’s law is unique in that it has no time limit but it does cap damages. Victims suing public institutions can receive a maximum of $890,000, while those suing private institutions or individuals can receive a maximum of $1.5 million. The archdiocese has faced criticism and scrutiny for its handling of abuse cases, with more than 600 children allegedly abused by over 150 clergy members from the mid-1940s to 2002, according to a report by the state Attorney General Anthony G. Brown.
The Maryland Catholic Conference, which represents the three dioceses in the state, along with tort reform advocates, testified earlier this year that they believe the Child Victims Act is unconstitutional. They argue that a previous law change in 2017 set a permanent age limit of 38 for abuse survivors to sue, and lifting all age limits now would be unconstitutional. The constitutionality of the law will likely be tested in court as the Maryland Attorney General has vowed to defend it.
The bankruptcy filing by the Archdiocese of Baltimore highlights the ongoing struggle to address clergy sexual abuse scandals within the Catholic Church. It remains to be seen how the bankruptcy process will impact abuse survivors seeking justice and compensation.