Can the Baltimore Archdiocese claim charitable immunity in bankruptcy case? A judge will decide.
A federal judge in Baltimore heard arguments Monday on whether the Archdiocese of Baltimore can claim charitable immunity as part of its ongoing bankruptcy case.
The hearing stems from a lawsuit filed in April on behalf of child sexual abuse survivors that claims the Archdiocese of Baltimore is trying to skirt its responsibility of compensating survivors of abuse.
The proceeding will determine whether the archdiocese, as a charitable organization, can be shielded from certain financial liabilities under Maryland law while also seeking protection through federal bankruptcy proceedings.
As of Monday night, the judge has not made a decision in this case.
Survivors call for dismissal of bankruptcy case
On Monday, during a press conference following the court hearing, members of the Survivors Network of those Abused by Priests (SNAP) called for the bankruptcy case to be dismissed, saying it was filed in bad faith.
"If the church truly believed bankruptcy would enable all survivors to be compensated and they wanted this, why invoke charitable immunity?" survivor Teresa Lancaster questioned. "We want the bankruptcy case dismissed."
While the judge has not yet made a decision, SNAP leaders said they plan to file an appeal once a decision is made.
"That's going to take time. It's a waiting game," Lancaster said. "I have survivors calling me on a daily basis asking for help. Is there a light at the end of the tunnel? Frankly, I'm not sure."
Maryland's Child Victims Act
In 2023, the Maryland Attorney General found that more than 600 children were abused by at least 165 priests, teachers and employees under the church's supervision.
After the Child Victims Act was signed into law, which eliminated the statute of limitations for survivors of child sexual abuse, victims filed a lawsuit alleging that the Baltimore Archdiocese is responsible for more than 1,000 claims of sexual assault — but has attempted to avoid compensating victims.
The Archdiocese of Baltimore filed for bankruptcy days before Maryland's Child Victims Act went into effect.
Baltimore Archdiocese bankruptcy filing
According to our partners at The Baltimore Banner, in filing for bankruptcy, Baltimore Archbishop William Lori expressed that the church would rather pay all of the survivors at once.
Lori wrote, "Chapter 11 reorganization is the best path forward to compensate equitably all victim-survivors, given the Archdiocese's limited financial resources, which would have otherwise been exhausted on litigation."
The recent lawsuit alleges that the archdiocese filed for bankruptcy because "it faced potentially catastrophic liabilities from hundreds of survivors' claims."
A spokesperson for the church issued a response to the lawsuit in April.
"By filing Chapter 11, the Archdiocese is seeking to provide the most orderly process in which victim survivors can be compensated, including from its insurance policies, while maintaining the mission and ministry of the Church," the statement said.
What is charitable immunity?
The charitable immunity doctrine is a court-created rule that protects certain organizations from civil lawsuits if the organization lacks liability insurance covering a specific claim, according to the People's Law Library of Maryland.
Under the rule, a charitable organization is defined as one that is tax-exempt and operates for religious or educational purposes. The rule was created with the idea that it is "unfair to make charitable organizations pay for civil damages…with funds received from donors," according to the People's Law Library of Maryland.
