The most recent filing from the Archdiocese of Baltimore’s bankruptcy proceedings shows the organization has more than $200 million in assets, which include a Tiffany tea set, a diamond-encrusted crucifix, a sapphire-studded locket and dozens of solid gold rings.
The filing is the first look into the Church’s holdings after more than a thousand alleged victims of child sexual abuse from the past 80 years are expected to seek retribution from their trauma.
Over the coming months, a federal bankruptcy court will look at the Baltimore Archdiocese’s assets and decide if the hundreds of expected lawsuits from victims would be a catastrophic liability for the organization. If so, the court will figure out how the church can best restructure itself to give victims compensation within the limitations of its assets.
The Church filed for bankruptcy late last month, virtually on the eve of a new law going into effect that would abolish the statute of limitations for sexual abuse in Maryland and allow alleged victims to sue the Church for up to $1.5 million.
“Chapter 11 reorganization is the best path forward to compensate equitably all victim-survivors, given the Archdiocese’s limited financial resources, which would have otherwise been exhausted on litigation,” Baltimore Archbishop William Lori said in an open letter to his congregation. “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.”
The filings show that the Archdiocese was retaining lawyers and consultants that probably advised the Church on how it should move forward with the abuse cases. The filings show the Church paid more than a quarter of a million dollars for legal advice on bankruptcy.
The Church’s assets included about $15 million in real estate, however, collectibles like the rings and locket, were not valued in the filing.
“I think that they're shortchanging it,” said David Lorenz, director of the Maryland Survivors Network of those Abused by Priests. “They need to put the parish assets in there too.”
The filing only encompasses the Archdiocese and not the smaller parishes. Lorenz said that protects the parishes and gives the Archdiocese a possible way to hide some assets.
The bankruptcy filing will likely only leave victims a short window in which to claim compensation.
Victims and advocates for survivors say the limitations imposed by the bankruptcy proceedings completely defeat the purpose of the Child Victims Act, which abolished the statute of limitations for sexual abuse cases.
“The church took away the Child Victim Act when they filed the bankruptcy, we worked for decades to get that law passed,” said Theresa Lancaster, an abuse survivor and lawyer. “The victims will have a limited time to file a proof of claim and bankruptcy court.”
The next bankruptcy hearing will be on Nov. 6.
