Monthly Archives: March 2025

Bankruptcy Court Grants Relief From Stay

On March 12, 2025, Judge Littlefield granted seven survivors relief from the automatic stay to pursue their cases against the Diocese in state court. The automatic stay is a mechanism in bankruptcy cases that “stays” or suspends various actions, including lawsuits, against the bankrupt entity during the life of the bankruptcy case. Here, when the Diocese filed for bankruptcy, survivors were prevented from continuing their lawsuits against the Diocese because of the automatic stay.

With the support of the Committee, the seven survivors obtained relief from the automatic stay and can now proceed with their cases against the Diocese in state court. The Committee believes that these cases will spur progress in the ongoing mediation in the bankruptcy case as they (1) will provide information regarding the value of survivor claims; and (2) alter the current mediation dynamics, which are ongoing, but have been unsuccessful so far. Each of the survivors has indicated that they will not seek to collect on any settlement or judgment obtained in connection with their lawsuits, and that their efforts are designed to drive progress in the bankruptcy case.  

Mediation in February 2025

Mediation is ongoing between the Committee, the Diocese, and the Diocese’s Insurers. Another mediation session was held in February 2025, and additional mediation sessions have been scheduled in March and April of 2025. The rules of bankruptcy require the parties to these sessions to keep everything said and done within the mediation strictly confidential. We know that this can be difficult but please know that the Committee and its professionals are fully engaged in all facets of the mediation and we will continue to provide updates as we are able.