Child Abuse Claims Have Franciscans Contemplating Bankruptcy

Santa Barbara attorney Tim Hale argues the streamlined bankruptcy process would deny survivors the opportunity to confront their abusers and high-ranking administrators under oath.

By Nick Welsh October 31, 2023

2 min read

Child Abuse Claims Have Franciscans Contemplating Bankruptcy

In anticipation of the significant legal damage that could be inflicted by at least 93 pending child abuse lawsuits filed in the past three years, the California Franciscan Friars — an order to which the Old Mission Santa Barbara belongs — is now giving serious thought to Chapter 11 bankruptcy.

“We have been overwhelmed by the number of cases filed, both in terms of the human cost and in our ability to fairly compensate all the abuse survivors,” explained Provincial Minister Fr. David Gaa. “The reality is, litigation costs and the potential liability will exceed our limited financial resources.”

“The bankruptcy process tends to be cold and makes survivors feel they are little more than a faceless claimant number,” Santa Barbara attorney Tim Hale stated. “The Franciscans should be ashamed.” | Credit: Courtesy

Under the bankruptcy process, Gaa noted, all the claims will be evaluated in the same action, and litigants will not find themselves in a race with one another for compensation and damages. The bankruptcy process, Gaa added, tends to move more swiftly; survivors will be settled with sooner. Bankruptcy judges, Gaa added, can pressure insurance companies to honor policies they wrote, thus generating greater revenues from which survivors can be compensated.