Court postpones Archdiocese of Baltimore bankruptcy case to provide more time for negotiations

A judge has delayed a hearing in the Archdiocese of Baltimore's bankruptcy case in an effort to give mediators more time to negotiate a possible settlement.  

In a ruling on Friday, U.S. Bankruptcy Judge Michelle Harner postponed a hearing set for this Wednesday until November 19, according to court documents obtained by CBS News Baltimore. The hearing will take place at the Edward A. Garmatz U.S. Courthouse in Baltimore. 

Lawyers representing the archdiocese and a survivors committee had asked the judge to grant a delay of 45 days to permit ongoing negotiations between the parties to continue. Church officials and a committee representing survivors of clergy sexual abuse have been trying to come closer to a resolution in the bankruptcy case.

Judge says all parties "need an ability to move forward"

After considering the request, Judge Harner said the court had decided to grant it. She expressed hope that the postponement would help drive negotiations toward a long-sought settlement in the case. 

"The court finds adequate justification and good cause to continue certain matters in this case to a date certain, approximately 45 days from the date of this Order," Judge Harner said. "Among other things, the court determines that the additional time will allow the parties to determine whether a consensual resolution is possible in this case or if an alternative path is needed." 

Judge Harner added, "As the court has previously stated, the court finds it imperative that this case move swiftly towards a resolution—whatever that resolution may be. All parties affected by this case need an ability to move forward."

Archdiocese bankruptcy

The Archdiocese of Baltimore filed for bankruptcy days before Maryland's Child Victims Act went into effect in 2023. The act eliminated the statute of limitations in sexual abuse cases and opened a flood of lawsuits with more than 900 claims against the church. 

Survivors have sought to dismiss the bankruptcy and are fighting the Archdiocese's claim of charitable immunity—that donations to a charity should not be used to pay civil claims. 

"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 Archdiocese of Baltimore previously told WJZ.

The church has more than $100 million in assets and has proposed a $33 million fund to compensate victims, court filings show. A settlement offer of about $35,000 for each victim was rejected.