Federal judge rejects the Oakland Diocese’s bankruptcy plan

On October 2, a federal judge rejected the Oakland Diocese's bankruptcy plan that aimed to resolve nearly 330 sexual abuse claims. The judge's decision comes three years after the diocese filed for bankruptcy due to financial difficulties stemming from abuse cases dating back to the 1960s. Judge William J. Lafferty dismissed several arguments in the diocese's bid to settle through bankruptcy, including its status as a religious institution, valuation of real estate assets, and the total amount owed to survivors.

The diocese is required to sell 13 churches in the East Bay, 7 of which are located in Oakland as part of the Chapter 11 case. The Office of the United States Trustee appointed a nine-member committee to oversee the administration of the Chapter 11 case, and all members unanimously rejected the diocese's plan. Bishop Michael C. Barber responded to the decision, expressing commitment to fair treatment for survivors and continuing the church's mission.