Baltimore Archdiocese says it will file for bankruptcy before law on abuse lawsuits takes effect

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The Catholic Archdiocese of Baltimore said it filed for Chapter 11 reorganization days before a new state law removes the statute of limitations on child sex abuse charges.

The step will “allow the archdiocese to equitably compensate victim-survivors of child sexual abuse” while the local Catholic Church continues its mission and ministries, Archbishop William E. Lori said in a statement posted on the archdiocese website.

The move is the best way to compensate survivors since the archdiocese’s resources would have otherwise been exhausted on litigation, Lori said.“Staggering legal fees and large settlements or jury awards for a few victim-survivors would have depleted our financial resources, leaving the vast majority of victim-survivors without compensation, while ending ministries that families across Maryland rely on for material and spiritual support,” he said.

 

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