BALTIMORE — The Archdiocese of Baltimore sent a letter to parishioners on Tuesday warning of potential financial issues due to new Maryland legislation.
In the letter, Archbishop William Lori said that a new law will go into effect on October 1 that allows victims of child sexual abuse to file civil lawsuits, no matter how long ago the abuse occurred.
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This law, he says, "has the potential to have devastating financial consequences."
"With the passage of the new law, there is a high likelihood that the Archdiocese will face multiple lawsuits, the number of which is hard to predict," Lori said in the letter. "The Archdiocese simply does not have unlimited resources to satisfy such claims; its assets are indeed finite."
Lori details that the Archdiocese has two goals it is prioritizing: to promote the healing of victim-survivors and to continue the ministries of the Archdiocese.
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"We do not believe that these goals are mutually exclusive," Lori wrote. "To that end, it is essential for the Archdiocese to pursue the best possible solution to meet both goals."
In order to meet these goals, the Archdiocese is considering bankruptcy reorganization.
Lori explains that bankruptcy reorganization will allow the Archdiocese to provide compensation for victim-survivors while also maintaining its ministries. This will be possible through donations, as the bankruptcy reorganization process does not affect financial donations made for specific purposes.
The Archbishop will be meeting with other leaders in the Archdiocese to assess how it will respond to the new law.
