OAKLAND (CA)
KNTV - NBC Bay Area [San Jose CA]
October 5, 2026
By Michael Bott
In his 109-page ruling, U.S. Bankruptcy Judge William Lafferty detailed his issues with the plan and found the Diocese failed to satisfy a key test in bankruptcy court.
A federal bankruptcy judge has rejected a plan from the Diocese of Oakland that would resolve nearly 350 sexual abuse claims and chart a path out of Chapter 11.
Plaintiffs’ attorneys celebrated the decision after nearly every survivor with a pending claim opposed the plan.
“Now, hopefully, we can work with the bishop to bring speedy justice to the suffering,” said attorney Jeff Anderson, who represents survivors with claims against the Diocese. “For over three years, the Bishop and his lawyer, bankruptcy lawyers, have deployed hardball tactics to further oppress and suppress justice, truth, and transparency that the survivors seek through the creditors committee.”
In his 109-page ruling, U.S. Bankruptcy Judge William Lafferty detailed his issues with the plan and found the Diocese failed to satisfy a key test in bankruptcy court: That dissenting creditors “receive at least as much in the proposed plan” as they would in a liquidation.
The judge ruled the diocese should not be treated differently in court simply because it’s a religious entity. He also took issue with how it valued its assets.
Lafferty encouraged “continuing dialogue and relentless good faith” as both sides resumed working towards a resolution.
In a message to Catholics within the Oakland Diocese, Bishop Michael Barber said Judge Lafferty laid out what needs to be corrected with the plan and that the Diocese will study the court’s decision.
“While this is a setback, we remain committed to providing fair and equitable treatment for the survivors, and to continuing our mission to proclaim the Gospel of Jesus Christ in service to the 500,000 faithful Catholics in our community,” Barber said.