A Roman Catholic group in California, which is dedicated to serving the poor, has filed for bankruptcy. It faces more than 100 lawsuits relating to allegations of sex abuse dating back to the 1940s.
In a statement released on Tuesday, the Franciscan Friars of California announced that they filed for Chapter 11 Bankruptcy at the U.S. Bankruptcy Court of Oakland on December 31.
, a religious organization, cited the 2019 change in California law as the cause for their move. The law allows abuse victims to file complaints from decades ago that would otherwise be prohibited due to the expiration date of the statute.
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A Franciscan Friar wears a traditional rope belt with a Rosary during a concert held in New York, Sept. 5, 2015 Franciscan Friars of California filed for bankruptcy after facing nearly 100 lawsuits relating to sex abuse allegations that allegedly took place at least 27 year ago. (Reuters/Brendan McDermid).
The Franciscan Friars of California stated that they were overwhelmed by the amount of abuse cases filed.
The statement states that “all of the claims relate to abuses that occurred at least 27 year ago with some claims dating as far back as the 1940s.”
The organization stated that the majority of friars listed in the claims have died and almost all of the 94 claims filed were in California.
“Of the six remaining friars, they have all been permanently removed from all public ministry environments and ministerial settings and are now living under strict third party supervision.”
The Franciscan Friars of California have joined a growing group of Roman Catholic organisations who have filed for bankruptcy in response to sex abuse suits. Chapter 11 bankruptcy has already been filed by the Catholic dioceses in San Francisco, Oakland, and Santa Rosa.
Fr. David Gaa is the provincial minister for the Franciscan Friars. He said that the only way to ensure “just financial compensation” of all victims of abuse was through bankruptcy.
Oakland is the home of Saint Barbara Province Franciscan Friars. After 94 sexual abuse lawsuits against the religious group, The Franciscan Friars of California have filed for Chapter 11 Bankruptcy.
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“The care for abuse survivors has always been our primary concern, and at the heart of our response,” Fr. Gaa said.
After consulting our legal and financial advisors, we concluded that litigation costs would exceed our limited finances. Therefore, Chapter 11 bankruptcy is the only viable option to ensure just, fair, and compassionate compensation for abuse survivors.
Fr. Gaa stated that the bankruptcy court can resolve a variety of sex assault claims with efficiency and equity.
“I’m deeply saddened at the sinful acts and damage done to abuse survivors, then only children, who placed their trust in Friars,” said Fr. Gaa said. “No amount of money or apology can undo the damage, but abuse survivors may find some comfort in knowing that their pain is acknowledged and that we value them.”
Franciscans are known for running the St. Anthony Foundation, which provides food, clothing, and addiction counseling, in San Francisco’s Tenderloin District. A spokesman for Reuters said that the bankruptcy filing will not affect the St. Anthony Foundation or the other operations of the organization in California and Arizona.
The Franciscan Friars of California filed for bankruptcy after nearly 100 lawsuits were filed over alleged sex abuse that occurred more than 27 years ago.
According to Reuters, the Franciscan organization’s assets range between $1 million to $10 million, while its liabilities are between $10 million to $50 million. This is according to a bankruptcy petition filed in Oakland, California on December 31.
The Roman Catholic Archdiocese of San Francisco declared bankruptcy in August to facilitate settlements of over 500 sex-abuse claims. In May, the Catholic Diocese of Oakland announced it had also declared bankruptcy due to 330 sex-abuse lawsuits.
Santa Rosa Catholic Diocese declared bankruptcy in March citing more than 200 new lawsuits filed by survivors of child sexual exploitation.
Reuters contributed this report.