New Chapter 11 Bankruptcy Filing - Roman Catholic Diocese of Harrisburg

in

Roman Catholic Diocese of Harrisburg

February 19, 2020

Look. We’ve already written ad nauseum about the use of the bankruptcy system to deal with a deluge of mass tort claimants. For a quick primer on why defendants against heaps of mass tort claims leverage the bankruptcy courts, you can revisit our piece about the Boy Scouts of America here. Many of the same issues at play in that case are relevant to the Roman Catholic Diocese of Harrisburg too. No sense in regurgitating.

With that as a preface, we’ll merely say this: we’re currently confronting an epidemic of immorality and dirtbaggery. Thirty sizable bankruptcy cases have filed this year already and 17% of them are mass tort cases. Three are manufacturers facing asbestos claimants. Then there’s the Boy Scouts and now the Diocese. And it won’t be the last: we have about half dozen other Dioceses that look like they’re headed towards bankruptcy. Zooming out, we can add a utility that knew but did nothing about faulty equipment that sparked wild fires, the US gymnastics team and more to the list. Seriously, folks, what the hell is going on here? If Obi-Wan Kenobi were staring down at the bankruptcy system, he’d pensively say, “You will never find a more wretched hive of scum and villainy.” And he’d be right.

The numbers here tell the tale. The RCDH is confronting 5 civil actions, 200 survivors of childhood abuse, and an unquantifiable number of unknown potential claimants. We can’t wait for the morbid constructive notice that’ll be deployed here: “If you or anyone you know was ever sexually abused by the RCDH, you have a right to file a claim in the RCDH’s bankruptcy case.” That won’t be triggering, nooooooo.

We love how these mass tort debtors frame their bankruptcy filings as an act of justice. Bankruptcy is needed, they say, to ensure the equitable distribution of assets among known and future claimants. Right sure. That’s why these debtors spent decades engaging in cover-ups. Or ring-fencing assets. Because they’re concerned about justice. 👍

Ugh. We’re sick of writing about these deplorable cases. And so we certainly hope the victims get the justice they deserve and get their due compensation. They deserve it.

  • Jurisdiction: M.D. of Pennsylvania (Judge Van Eck)

  • Professionals:

    • Legal: Waller Lansden Dortch & Davis LLP (Blake Roth, Tyler Layne) & Kleinbard LLC (Matthew Haverstick, Joshua Voss)

    • Claims Agent: Epiq Bankruptcy Solutions LLC (*click on the link above for free docket access)