A federal judge has rejected the Oakland Catholic Diocese’s fourth bankruptcy plan, finding that its case for special treatment and some financial estimates fell short, sending the diocese and sexual abuse survivors back to negotiations.
In his 109-page decision Friday, US Bankruptcy Judge William J. Lafferty rejected the Roman Catholic Diocese of Oakland’s latest proposal for resolving hundreds of sexual abuse claims, ruling that the diocese had not made the case for approval. As the Chronicle reports, the plan was opposed by a nine-member committee representing abuse survivors, who argued that the diocese had undervalued its property and other assets.
Lafferty specifically rejected the diocese’s argument that its status as a religious institution warranted special consideration in the bankruptcy process. He said the church was not entitled to be treated “differently or more leniently” than another nonprofit or business going through bankruptcy…