The Diocese of Stockton has filed for Chapter 11 bankruptcy because it can no longer afford to pay legal expenses in connection with clergy sexual abuse allegations. The city of Stockton is also filing for bankruptcy. The Stockton Diocese is one of ten total dioceses in the United States to file for Chapter 11 bankruptcy relief since the sex abuse allegations broke nearly 20 years ago.
If the bankruptcy goes through as planned, all pending litigation against the diocese and its clergy would be halted. It would also release the diocese from civil liability. Rather than the diocese having to pay for victim restitution in the form of settlements and judgments, a victim restitution fund/trust would be established so that the victims of clergy sexual abuse could gain financial compensation for things like psychological rehabilitation and counseling.
Essentially, Chapter 11 bankruptcy would allow the Diocese of Stockton to avoid all civil cases related to sexual abuse in the coming months and years. If you are a victim of abuse on behalf of a clergyman of the Diocese of Stockton, the Diocese of Stockton bankruptcy could affect you, especially if your case is currently pending. For more information, please contact a California sexual abuse lawyer at Manly, Stewart & Finaldi today.