A Roman Catholic charitable order in California filed for bankruptcy this week to ensure “just financial compensation” in nearly 100 lawsuits related to decade-old allegations of sexual abuse.
The Franciscan Friars of California, Inc. filed for Chapter 11 Bankruptcy protection on New Year’s Eve following a change in state law that allows victims to override the statute of limitations, the Oakland-based organization announced Tuesday.
“The Franciscan Friars of California filed the Chapter 11 Bankruptcy petition to address 94 child sexual abuse claims filed as the result of state laws that allowed abuse survivors to file decades-old complaints that were otherwise time-barred or expired under the state’s statute of limitations,” the statement read.
“All of the claims are based on abuse that allegedly occurred at least 27 years ago, with several claims dating back to the 1940s,” the write-up added.
Only six of the friars named in the claims – almost all of which were filed in California – are still alive, the organization said.
The surviving friars “have all been long-removed permanently from all public ministry and ministerial environments, and are living under strict third-party supervision,” the order insisted.
The Franciscan Friars of California are based in Oakland. Google Maps“The care of abuse survivors is our foremost concern and has always been at the core of our response,” Fr. David Gaa, OFM, provincial minister of the Franciscan friars, said.
“As a result of the state’s most recent temporary suspension of the statute of limitations, we were overwhelmed by the number of cases filed, both in terms of the human cost and in our ability to fairly compensate all abuse survivors,” he continued, noting that “Chapter 11 Bankruptcy is the only viable path to ensuring just, equitable, and compassionate compensation for all abuse survivors,” he concluded.
The bankruptcy will not only take account of the friars’ assets, but it will also prevent the abuse survivors from having to compete for the earliest or more substantial claims, Gaa explained.
At the time of the Dec. 31 filing, the organizations had between $1 million and $10 million in assets and between $10 million and $50 million in assets.
California is one of several states to pass legislation allowing survivors of sex abuse to file lawsuits in cases that otherwise would have passed the statute of limitations, the Catholic News Agency noted.
A new law will also eliminate the statute of limitations for child sex abuse beginning in 2024, KEYT reported last fall.
The mendicant order listed between $10 million and $50 million in liabilities. Google MapsThe Diocese of Santa Rosa, the Archdiocese of San Francisco, and the Diocese of Oakland all filed to Chapter 11 in similar cases in 2023, Bloomberg News noted.
The Catholic Diocese of Sacramento has also announced plans to file for bankruptcy protection by March, the outlet added.
“I am deeply saddened by the sinful acts committed and the damage caused to abuse survivors – then only children – who put their trust in friars. No apology or any amount of financial compensation can reverse the harm, but perhaps abuse survivors will find some solace in knowing that we are acknowledging their pain and that they are important to us,” Fr. Gaa said.
Founded in 1209 by St. Francis of Assisi, the Franciscans are known for helping the poor and the sick.
The Franciscan Friars of California, in particular, provide clothing, food, and addiction counseling through the St. Anthony Foundation in San Francisco’s Tenderloin neighborhood.
St. Anthony House – as well as the organization’s other work throughout California and Arizona – will not be impacted by the bankruptcy filing, a spokesperson told Reuters.
With Post wires






