On August 13, 2024, the Archdiocese voluntary dismissed its lawsuit against insurers related to insurance coverage issues. The case was dismissed without prejudice which means that the Archdiocese may re-file the complaint and re-start the case in the future. The Archdiocese voluntarily dismissed the case as part of an agreement made between the Committee, the Archdiocese, and the insurers to begin the process of mediation. The parties also agreed that if mediation stalls, the Archdiocese lawsuit against the insurers can start up again, and the Committee may be included as a formal party to that lawsuit.

The Committee, the Archdiocese, and Insurers in the case have reached an agreement on the process by which mediation (settlement negotiations) can begin. The parties agreed on two mediators, Judge Robert Faris and Mr. Brian Nash, and the Insurers will be allowed to choose a third mediator with specific expertise on insurance issues. The agreement also included a dismissal of the Archdiocese’s lawsuit against its insurers regarding insurance coverage issues, but the parties agreed that the Archdiocese’s lawsuit could be restarted if mediation stalls. Finally, the parties agreed that, if the lawsuit against the insurers starts up again, the Committee will be included as a formal party to the lawsuit. The Committee’s direct involvement in the lawsuit will provide greater rights for Survivors in determining whether Survivor claims must be paid by insurance companies.  

The Committee is optimistic about this agreement and believes it will positively impact mediation and reduce delay.  As the parties negotiate, the Committee will focus on getting the largest monetary settlement possible for Survivors and on improving the Archdiocese’s existing policies and guidelines to protect children.

During mediation, the Committee will need to keep information about its negotiations with the Archdiocese and the Insurers confidential. This is something that the Court requires. Survivors sometimes find this challenging because they do not have information about how things are progressing. If you have questions, or are experiencing frustration during the mediation, remember that the Committee is made up of seven Survivors, and that they are dedicated to representing all Survivors in the case as effectively as possible. You are also welcome to contact the attorneys for the Committee, or have your own attorney(s) contact us, any time. We always welcome your questions and thoughts.

On May 1, 2024, the Bankruptcy Court granted the Committee’s application to employ Burns Bair LLP (“Burns Bair”) as the Committee’s special insurance counsel. The Court authorized Burns Bair to assist the Committee with, among other things, analyzing the insurance policies of the debtor and obtaining insurance recoveries.

On May 1, 2024, the Bankruptcy Court granted the Committee’s application to employ Stout Risius Ross, LLC (“Stout”) as the Committee’s valuation expert. Stout will provide expert assistance to the Committee with respect to the value of survivor claims and the allocation of the Debtor’s insurance to survivor claims. Stout’s expert services will play a critical role in ensuring that survivors are fairly compensated by the Debtor and its insurers.

On May 20, 2024 at 10:00 a.m. Eastern, eight Survivors will be presenting impact statements to the Bankruptcy Court in Baltimore. The hearing will be open to the public and all Survivors are invited to attend.  The Bankruptcy Court is located at 101 W. Lombard St., Baltimore, MD in Courtroom 9-C. Please plan to arrive at 9:15 a.m. Eastern to allow yourself time to get settled. While there is no guarantee that there will be space inside the courtroom for all that wish to observe, it is expected that the hearing will be live-streamed from a separate room in the courthouse. 

As you already understand, the presenting Survivors will be speaking about their difficult history which can be triggering to those listening. Please be mindful of the support that you may need both during and within the hours and days following the presentations.  The Committee looks forward to making this event significant and effective.  

On October 11, 2023, the United States Trustee, the governmental body tasked with overseeing bankruptcy cases, appointed seven members to the Official Committee of Unsecured Creditors (the “Committee”).  The Committee was appointed to represent all unsecured creditors of the Debtor, which are predominately comprised of sexual abuse survivors. More information regarding the role of the Committee can be found at Overview of Bankruptcy Process.

The Archdiocese of Baltimore filed for chapter 11 bankruptcy on September 29, 2023. In its initial case filings, the Archdiocese explained that its bankruptcy filing provide: “(a) compensation for the unresolved claims of survivors of abuse, including those survivors who have not yet come forward; (b) continue outreach to and support of survivors as an ongoing ministry; (c) preserve the ability to carry on the essential ministries and services provided by the [Archdiocese], so the [Archdiocese] can continue to meet the needs of the Catholic faithful within the Archdiocese, the Parishes, the Schools, the Related Entities, and others who rely on the foregoing for spiritual, pastoral, and human assistance; and (d) fairly allocate the [Archdiocese] remaining income and assets among the legitimate competing interests for such property, recognizing that it is not possible to pay all alleged claims in full.”

The Debtor indicated that at the time it filed for bankruptcy it held assets totaling $204,962,748 and liabilities totaling $24,933,882.