OAKLAND (CA)
KNTV - NBC Bay Area [San Jose CA]
December 12, 2025
By Candice Nguyen, Michael Bott and Robbie Beasom
The latest proposal is the Oakland Diocese’s last-ditch effort to settle with alleged clergy abuse victims in bankruptcy court.
Attorneys for the Oakland Diocese say they’re proposing a final offer to settle hundreds of active sexual abuse claims in bankruptcy court. Investigative Reporter Candice Nguyen explains.
Calling it the “last and final” opportunity to settle in bankruptcy court with roughly 350 alleged clergy abuse victims suing the church, the Diocese of Oakland filed a last-ditch proposal Thursday that would pay survivors a total of $242 million over five years, in addition to implementing new child protection protocols.
The previous proposal from the Diocese offered survivors $165 million but was overwhelmingly rejected.
The latest offer comes after a months-long impasse between the Oakland Diocese and its creditors – mostly plaintiffs now suing the church over child sexual abuse claims – had the bankruptcy case on life support. U.S. Bankruptcy Judge William Lafferty indicated in a November hearing that he was on the verge of dismissing the case unless the diocese could show significant signs of new progress towards a resolution.
In court documents, attorneys representing the Diocese called the new offer “fair and equitable,” and requested Judge Lafferty hold off on tossing out the case until it could be reviewed by all parties.
“It would compensate survivors of sexual abuse who are creditors and would permit the diocese to continue its ministry to the more than 500,000 faithful within and around the diocese,” they wrote.
Attorneys for the Oakland Diocese say they’re proposing a final offer to settle hundreds of active sexual abuse claims in bankruptcy court. Investigative Reporter Candice Nguyen explains.
Plaintiff attorney Rick Simons, however, blasted the plan, saying the money should be paid out up front, and that the Diocese’s insurers should be on the hook for more.
“This plan will be given the same frosty reception as the bishop’s last try to stuff something down the throats of unwilling survivors,” Simons said. “Everyone knows it’s not fair, everyone knows it’s not morally right, and everyone knows it is just plain inadequate.”
He also questioned why the specifics of Diocese’s proposed enhanced child protection protocols, also part of the new proposal, are redacted in the court filing.
“The Bishop’s plan is not the answer to the problem that he faces, which is accountability and responsibility to the children who were so grievously harmed,” Simons said.
A spokesperson for the Diocese of Oakland has not yet responded to NBC Bay Area’s request for comment on the proposed settlement.
Oakland Bishop Michael Barber has previously apologized to victims of clergy abuse in court, adding that many of the allegations are decades old and that the Diocese has much stronger protections for children in place today.
Attorneys representing the Diocese said in their latest filing they were imploring all parties involved, including alleged victims and the Diocese’s insurers, “one final time to resolve this Chapter 11 Case.”
Both sides had previously requested the bankruptcy case be dismissed over a longstanding stalemate, which would result in each individual lawsuit being sent back to state court. However, attorneys for the Diocese recently told Judge Lafferty they were making progress towards a new proposal, and asked for more time to resolve the case before it was dismissed.
If this latest offer falls through, the cases are likely heading back to state court, where the first civil trial is scheduled to begin in March.