American Catholic priests (Friars) of California files for bankruptcy amid nearly 100 sex abuse claims

By Edward Era Barbacena 

FOX: An American Roman Catholic organization in California that is devoted to serving the poor has filed for bankruptcy as it faces nearly 100 lawsuits related to sex abuse claims stretching as far back as the 1940s.

The Franciscan Friars of California said in a Tuesday statement that it filed for Chapter 11 Bankruptcy on Dec. 31 in the U.S. Bankruptcy Court in Oakland.

The religious organization cited a change in California state law in 2019 as the reason for the move. The law allows abuse survivors to file decades-old complaints that would have otherwise been prohibited because of the expiration of the statute of limitations. 

The Franciscan Friars of California said it was overwhelmed by the number of cases filed, both in terms of the human cost and its ability to fairly compensate all abuse survivors.

"All of the claims are based on abuse that allegedly occurred at least 27 years ago, with several claims dating back to the 1940s," the statement reads.

Almost all the 94 claims were filed in California and most of the friars named in the claims are deceased, the organization said. 

"Of the six living friars, all have been long removed permanently from all public ministry and ministerial environments, and are living under strict third-party supervision."

The Franciscan Friars of California joins a growing wave of Roman Catholic organizations that have filed for bankruptcy to address sex abuse lawsuits. The Catholic dioceses of San Francisco, Oakland and Santa Rosa have already sought Chapter 11 Bankruptcy.

 Fr. David Gaa, the provincial minister of the Franciscan friars, said that bankruptcy is the only path to ensuring "just financial compensation" for all abuse survivors.

"The care of abuse survivors is our foremost concern and has always been at the core of our response," Fr. Gaa said. 

"After consulting with our legal and financial counsel, we have concluded that litigation costs and potential liability would exceed our limited financial capacity – and, therefore, pursuing Chapter 11 Bankruptcy is the only viable path to ensuring just, equitable, and compassionate compensation for all abuse survivors."

Fr. Gaa said the bankruptcy court could resolve a multitude of sex abuse claims efficiently and with equity.

"I am deeply saddened by the sinful acts committed and the damage caused to abuse survivors – then only children – who put their trust in friars," Fr. Gaa said. "No apology or any amount of financial compensation can reverse the harm, but perhaps abuse survivors will find some solace in knowing that we are acknowledging their pain and that they are important to us."

The Franciscan order is known for operating the St. Anthony Foundation in San Francisco's Tenderloin district, providing food, clothing and addiction counseling to those in need. The work of the St. Anthony Foundation, and the organization's other operations in California and Arizona, will not be impacted by the bankruptcy filing, a spokesman told Reuters.

The Franciscan organization has between $1 million and $10 million in assets, and between $10 million and $50 million in liabilities, according to a petition filed on Dec. 31 in the U.S. Bankruptcy Court in Oakland, California, according to Reuters.

In August, the Roman Catholic Archdiocese of San Francisco filed for bankruptcy to facilitate any potential settlements amid more than 500 sex abuse claims while in May, the Catholic Diocese of Oakland also announced that it had filed for bankruptcy amid 330 sex abuse lawsuits.

In March, The Santa Rosa Catholic Diocese filed for bankruptcy citing new lawsuits from more than 200 survivors of child sexual abuse.