
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comPartner
201-896-7095 jglucksman@sh-law.comThe sex abuse scandal has had a major impact on the Catholic church, and not just in its reputation. The Catholic Diocese of Stockton, Calif., recently said it would become the 10th diocese to file for protection under Chapter 11 bankruptcy law as a result of the scandal, according to The Wall Street Journal.
Bishop Stephen Blaire said that reorganization was the only option to help cover the increasing legal costs. In total, the diocese has spent $14 million in legal settlements and judgments in the past two decades, and no longer has funds to cover any pending or future cases.
The diocese’s Chapter 11 filing would halt any current proceedings, and potentially allow the discharge of liabilities by setting up a trust to compensate victims of sexual abuse.
The Catholic Diocese of Stockton, Calif. isn’t alone, as the Milwaukee Archdiocese recently submitted its plan of reorganization three years after it declared bankruptcy. According to the Journal Sentinel, the Archdiocese is currently facing 575 claims, with legal fees greater than $11 million. This is one of the biggest bankruptcies filed by any of the Catholic dioceses in the U.S., according to legal experts.
Archbishop Jerome Listecki – who filed the bankruptcy – hopes to put the case in the past to begin focusing on church duties moving forward.
“It’s been three years since our Chapter 11 petition was filed, and it is time for the archdiocese to return its focus to its ministry of charity, service and education,” Topczewski, told the news source. “Outreach to abuse survivors will always be part of that ministry.”
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
Author: Dan Brecher
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process that involves important corporate governance considerations. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, […]
Author: Dan Brecher
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!