Author Archives: Shelby Kostolni

Mid-June Update

The Official Committee of Survivors in the Archdiocese of Baltimore’s bankruptcy remains actively involved in all aspects of this case and provides the following update.

I. Plans of Reorganization

Both the Survivor Committee and the Archdiocese have filed proposed Plans of Reorganization with the Court. A plan of reorganization serves as the roadmap for how the bankruptcy case will ultimately be resolved. It determines what assets will be available to satisfy claims, how those assets will be valued and administered, and how funds will eventually be distributed to survivors and other creditors. Put simply, the plan determines not only how the pie will be divided, but also how large the pie will be.

Each proposed plan is accompanied by a Disclosure Statement. A Disclosure Statement summarizes the key terms of the plan and provides creditors with information about the proposed treatment of claims, available assets, and the process for making distributions. The Court must approve a Disclosure Statement before creditors can vote to accept or reject a plan.

On June 8, 2026, the Court held its first hearing on the competing Disclosure Statements. During that hearing, Judge Harner directed the parties to continue meeting regularly to negotiate and address outstanding issues. The Court also scheduled weekly status conferences to monitor progress. If the necessary issues can be resolved, one or both plans could be finalized and sent to survivors and other creditors for voting as early as August.

If and when that occurs, all survivors who filed claims in this bankruptcy case will receive information and voting materials at the mailing address they provided on their proof of claim.

As part of this process, the parties continue to provide additional information, respond to questions from the Court, and address objections raised to the proposed Disclosure Statements.

In short, the case continues to move forward, but important issues remain unresolved. The Committee understands that survivors want this process to come to an end. It remains committed to maximizing recoveries for survivors while also pursuing meaningful youth protection measures designed to help keep children safe in the future.

II. Relief from the Bankruptcy Stay

On June 1 and 2, 2026, the Court held hearings on two related matters: (1) motions filed by seven survivors seeking permission to continue pursuing their lawsuits outside of bankruptcy, and (2) the Survivor Committee’s request to lift the bankruptcy stay as it applies to parish-related litigation.

The hearings included testimony from the Archdiocese’s insurance attorney, as well as extensive legal arguments from the parties.

Several days later, Judge Harner ruled that she would not grant that relief at this time. As a result, the seven survivors who sought permission to move forward with their cases cannot do so for now, and the stay remains in place with respect to the parish-related issues raised by the Committee.

Importantly, however, the Court also indicated that if the bankruptcy case has not meaningfully progressed by the end of September, it may reconsider whether these lawsuits should be permitted to proceed. While this decision delays further litigation for now, it also increases the pressure on all parties to move toward a resolution in the coming months.

III. “Seek the City to Come” Litigation

The Survivor Committee previously filed litigation concerning the Archdiocese’s Seek the City to Come initiative. The Committee sought greater transparency regarding transactions involving parish property during the bankruptcy case.

The Court ruled that the Archdiocese may continue with the initiative, but it must provide advance notice to the Court before entering into new transactions involving parish property. Those notices must disclose the proposed transaction and its key terms.

As a result, survivors and other parties in interest will have greater visibility into proposed parish property transactions during the bankruptcy process. The Court has indicated that it intends to monitor this process closely. A status conference to review these disclosures and assess how the process is working is scheduled for July 6 at 10:00 a.m. Eastern Time.

Survivors who are represented by counsel are encouraged to discuss these developments with their attorneys to better understand how they may affect their individual claims. General questions regarding the bankruptcy process, or comments for the Official Committee, will be treated confidentially and may be sent to baltimoresurvivorteam@stinson.com. All messages will receive a reply.

Survivor Victory in California

A jury in Alameda Superior Court (Oakland) found this week that one Survivor deserves to be paid $16 million for abuse he experienced in the Diocese of Oakland. The Survivor was abused by a priest who had previously been arrested for abuse, but was then moved to another post. The same priest had been accused of abuse in several other lawsuits. 

Rick Simons, lead trial attorney for the Survivor commented “This is a case about accountability, it’s about justice. It’s about the Survivor finding his voice and regaining his power. We stand with him on this momentous day.” Jeff Anderson, another attorney representing the Survivor commented “Today’s verdict reflects years of resilience and determination, driven by an unwavering pursuit of truth and justice. This moment belongs not only to the Survivor, but to every survivor who has stood up and spoken up.”  

The Diocese of Oakland is in bankruptcy, but this trial was able to proceed because the bankruptcy stay was lifted to allow a small number of Survivor lawsuits to proceed. Details regarding the case can be viewed via this link. Please be aware that details may be difficult to read and re-traumatizing for some Survivors.  

This result makes clear, once again, that Survivor claims are valid and serious and that the Church and its insurers face very significant financial responsibility for Survivor claims in all Catholic Church bankruptcies. The outcome also reflects the bravery and tenacity of the Survivor who agreed to stand up to the Church and its large insurers, and to face down the most difficult experiences of his life, in order to help other Survivors in the Diocese of Oakland and across the country. 

Town Hall Questions and Answers

Many questions were posed during the recent March 3, 2026 Town Hall meeting hosted by the Official Committee of Survivors.  The following are those that the Committee and its legal counsel Stinson LLP wanted to make sure received a response.  To view the complete Town Hall and see other important questions answered please click this link.

Are there signs of closure this year?

Yes. But in fairness, there are also signs that it could take longer. The reality of church bankruptcy cases is that they are extremely complicated and that many parties other than Survivors can directly influence how long it takes to find a solution. We could have had a deal done very quickly, but it would have been a very unfair deal for Survivors from the Committee’s perspective. The Committee agrees that this is taking too long, but we have learned to focus on what we can control. Our hope is to deliver a fair resolution for Survivors as soon as we possibly can and we work every day to find the best ways to do that.

How often is mediation happening and how many sessions have there been?

The Survivor Committee has been mediating frequently with the Archdiocese and its insurers and those negotiations will continue. So far, dozens of sessions have occurred in the case. This is not unusual in bankruptcies filed by the Catholic Church.

What is the status of claim objections? Would we know if our claim has been objected to?

If you are represented by an attorney then they would have been contacted. If you have any questions you should reach out to your attorney. If you are not represented then correspondence would have been sent to the contact information contained in your claim.

Why do settlements between the Church and survivors in other places not resolve things for Survivors in Maryland?

While the Catholic Church has had bankruptcies in other States, each bankruptcy is separate and one does not have any legal impact on another.

How can we get documents filed in the bankruptcy and learn when the bankruptcy court schedules status conferences?

All documents and appearances in this case can be found at this link: Roman Catholic Archbishop of Baltimore Bankruptcy Adversary Proceedings Case: 23-16969 | Epiq  You can also sign-up for “Docket Alerts” to be notified when there are additions.

Have Survivor claims already been reviewed for purposes of payment?

They have not. It is very unlikely that Survivor claims will be reviewed for this purpose until a final settlement is reached. Survivor claimants will receive details about the process once they have been developed and Survivors will have a chance to voice any concerns they may have with the Court. This is something that Survivors should work with their personal attorneys to address.

What if a survivor did not include all details in filing his/her claim and now wants to do that?

Survivor claimants may update their “Claim supplement” to add additional information to their claim and they may also amend their claim altogether. The Committee cannot provide guidance on specifics, but please discuss this with your attorney if you are represented, or e-mail baltimoresurvivorteam@stinson.com if you need a link to relevant forms or examples.

Has the Archdiocese resolved its claims against its insurance companies? In other words is the amount of available Church insurance money no longer disputed?

At this point, there are not yet settlements with insurance carriers, so the amount of insurance money available to pay Survivor claims remains subject to negotiation. The Survivor Committee will continue to pursue fair insurance settlements.

Who ultimately makes the Archdiocese pay claims?

The Archdiocese chose to file for bankruptcy and, because it did, it is now required to pay the claims of Survivors fairly and equitably. The bankruptcy Judge oversees the process and makes sure the requirements of federal bankruptcy law are satisfied. The Survivor Committee is also monitoring the case closely at every turn to make sure things are being done fairly from the point of view of Survivors.

Does the Survivor Committee represent everyone?

The Survivor Committee advocates for the interests of Survivor claimants as a group, but most Survivors also have a lawyer to advocate for them personally. The Committee does not advocate for individual Survivors. The Committee’s main focus is to achieve a settlement with the Archdiocese and its insurers that it believes is fair and equitable. If the Committee is able to do that, Survivors will then have a chance to decide for themselves if they approve of the settlement. 

Will the Committee or the bankruptcy court make the Archdiocese release confidential, abusive priest files as part of the bankruptcy?

This issue is a very important one, but the outcome is uncertain. Any proposal about this will become part of a settlement plan that Survivors will have a chance to analyze and voice their opinion on.