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The Catholic Center at 320 Cathedral Street in Baltimore is the headquarters for the Archdiocece of Baltimore. (Kevin J. Parks/CR Staff)

Court sets deadline for claims in archdiocesan bankruptcy reorganization


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Catholic Review Filed Under: 2023 Attorney General's Report, Child & Youth Protection, Feature, Local News, News

In a court hearing Dec. 18, Judge Michelle M. Harner said she would make an order setting May 31 as the “bar date” in the Archdiocese of Baltimore’s Chapter 11 bankruptcy reorganization case. The move sets the deadline by which anyone who has a claim against the archdiocese – including anyone who was abused before Sept. 29, 2023, by clergy, religious or employees in the archdiocese – must submit a claim to be included in the potential settlement.

The archdiocese had requested an earlier date. The creditors’ committee – which consists of seven victim-survivors of sexual abuse by clergy within the archdiocese who represent the larger group of claimants – had requested June 1 as the date. In the hearing, Harner said she was leaning toward the middle of May, which would be 230 days from the archdiocese’s filing for Chapter 11 reorganization, which seemed to be the average of other similar cases she had researched. The parties agreed on May 31, since June 1, the date requested by the creditors, is a Saturday.

The hearing also included discussion on wording for the official claim form. Use of the claim form will be strongly recommended, rather than required, because the goal is to get as much information as possible to determine the validity of the claim. Harner said that if a creditor or survivor does not provide enough information, it could lead to the claim being contested. “I don’t want to increase the burden,” she said.

The judge and some of the attorneys noted that substantial information is needed to help determine whether a claim is valid. Harner said she was concerned about people without valid claims trying to “lob on” with a claim, which would dilute the funds available for legitimate victim-survivors.

Robert T. Kugler, an attorney with Stinson LLP who represents the Unsecured Creditors’ Committee in the case, said those representing the creditors committee with experience in similar cases, “have gotten good at identifying fraudulent claims,” but they don’t want to box out people with valid claims.

At the beginning of the session, Kugler asked for six of the members of the creditors committee, who were present in the courtroom, to stand and be acknowledged.

Harner noted that her preference in bankruptcy cases is for efficiency, to preserve as many resources as possible to distribute to the creditors.

At the beginning of the session, Blake Roth, an attorney from Holland and Knight who represents the Roman Catholic Archbishop of Baltimore as the debtor in the case, said selection of the bar date is a question of balancing between giving claimants enough time to file for compensation with the archdiocese’s ability to move forward with the continuation of its ministry. He said the deadline is helpful for the archdiocese and insurance companies to know the “universe of survivors.”

Kugler argued for the June 1 deadline, saying that although the creditors committee also wants to see the case resolved “with alacrity,” he did not see that adding some extra days to the schedule would be of any harm. He also said that the parties would not be stopping discussions between now and the bar date.

Kugler said members of the creditors committee and their attorneys would be meeting Dec. 18 with Archbishop William E. Lori, “to begin discussions, and that’s terrific.”

Roth, the attorney for the archdiocese, said the soonest that serious negotiations to determine the size of the settlement could begin would be about eight weeks after the bar date.

The hearing also discussed the question of confidentiality of the claims submitted, with confidentiality being the default to protect the names of individual victim-survivors, but with the ability for them to opt out, if they wish for their story to be public. Harner emphasized again, as she had at a hearing Nov. 6, that victim-survivors who wish to “have a voice” and share their story should be able to do so.

Harner also acknowledged to Roth that she appreciated the archdiocese’s cooperation, even though the bar date was not what the attorney had originally proposed for the deadline.

A claim form will be available on the archdiocesan website at www.archbalt.org.

Now that the bar date is set, the archdiocese must meet certain communication requirements, which include asking parishes, archdiocesan schools and organizations to assist in notifying potential claimants. 

According to a communication from Christian Kendzierski, executive director of communications for the archdiocese to pastors, school presidents and principals, the archdiocese will be required to share information about the claim form and deadline via television and print media advertising and social media posts. 

“These requirements ensure that the organization in the Chapter 11 process is informing its constituencies and the public that it has filed for Chapter 11 and that there is a finite period during which claims must be filed. We are also required to provide information on how to access a claim form,” Kendzierski said in the letters.

Parishes, schools and other affiliated organizations will be asked to do their own outreach.

Parishes will be asked at some point during the reorganization process to:

  • Post a link to the claim form on parish websites and social media platforms.
  • Display information on the claim’s deadline and process in a prominent location.
  • Publish a notice once a month in bulletins until the claim filing deadline. 
  • Read a letter from Archbishop William E. Lori from at Masses at least two times before the claim filing deadline.
  • Disseminate the claim information and deadline notice by email to the parish distribution lists. 

Schools will be responsible for displaying information on the claim’s deadline and process in a prominent location/informational board and disseminating the claim information and deadline notice by email to their distribution lists.

This story was updated Dec. 18 at 9 p.m. with additional information.

Email Christopher Gunty at editor@catholicreview.org.

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