The Archdiocese of Baltimore on Friday submitted a 175-page bankruptcy reorganization plan that would establish how hundreds of child sexual abuse claims are handled going forward.
The church is seeking to channel all settled abuse litigation into a controlled trust system while protecting church entities and insurers from future lawsuits. The proposal still needs to be approved by the U.S. Bankruptcy Court.
“The proposed plan is intended to advance discussions, provide a framework for resolution and support continued dialogue among all parties,” the archdiocese wrote in a news release.
The Archdiocese of Baltimore filed for bankruptcy in September 2023, two days before Maryland lifted the statute of limitations for childhood sexual abuse lawsuits. Between 900 and 1,000 people filed claims alleging they were sexually abused as children by people connected to the church.
The proposal would establish one trust to distribute compensation to survivors using money from the church, parishes, schools and insurance settlements, and a second trust to pursue litigation and insurance claims involving insurers that did not agree to settlements. Survivors’ claims would generally be directed through the trust system, though some litigation could continue in limited circumstances.
The proposal estimates the archdiocese’s contribution to survivors at roughly $43.9 million, while settling insurance carriers would contribute at least $125 million. The proposal also allows parishes, schools and other affiliated entities to join the bankruptcy process as additional debtors, though how much they would contribute has not been determined.
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