Roman Catholic organisation files for bankruptcy with nearly 100 lawsuits related to decades-old sex abuse claims

Facing almost 100 lawsuits related to decades-old sex abuse allegations, the Franciscan Friars of California, a Roman Catholic organization, has filed for bankruptcy. The California-based group, dedicated to assisting the impoverished, attributed its bankruptcy to a state law in California that has allowed sexual abuse victims to file complaints regarding incidents that occurred many years ago. Previously, such complaints were time-barred under the state’s statute of limitations.

The Franciscan Friars of California is confronted with 94 lawsuits, most of which have been initiated in the state of California. According to the organization, these lawsuits involve allegations of abuse that date back at least 27 years. In response to the situation, the Franciscan Friars of California stated that most of the accused friars are deceased, and the six who are still alive are no longer associated with the organization. Father David Gaa, the Provincial minister, expressed deep sadness for the “sinful acts committed” and the harm caused to abuse survivors, who were children at the time and had placed their trust in the friars.

Despite acknowledging that no apology or financial compensation can reverse the harm, Father Gaa stated that the bankruptcy filing would enable the organization to fairly compensate abuse survivors. The Franciscan Friars of California is among several Roman Catholic organizations that have filed for bankruptcy recently to address sexual abuse lawsuits. In 2023, the Diocese of Santa Rosa, the Archdiocese of San Francisco, and the Diocese of Oakland all filed for Chapter 11 bankruptcy, according to Bloomberg News.

In the bankruptcy filing dated December 31, 2023, the friars disclosed having assets ranging from $1 million to $10 million and liabilities between $10 million and $50 million. Despite the financial challenges, the organization assured that its work at the St. Anthony Foundation in San Francisco’s Tenderloin district, where it provides food, clothing, and addiction counseling to those in need, will not be affected by the bankruptcy filing.