Archdiocese bankruptcy case continues mediation

The court overseeing the Chapter 11 bankruptcy reorganization case for the Archdiocese of Baltimore held a status hearing March 10, in which Judge Michelle M. Harner noted that the parties involved are “working tirelessly” to come up with a mediation plan.

Catherine Hopkin, one of the attorneys for the archdiocese as the debtor in the case, told the judge that the parties have had several mediation sessions, the latest in mid-February. The debtor, the Official Committee of Unsecured Creditors representing all the victims in the case, and representatives of insurance companies participate in the mediation.

The court-appointed mediators in the case are Robert J. Faris, Brian J. Nash and Marc Isserles. Additional mediation sessions are scheduled in the coming months.

Noting that there is no timeline yet in place for completion of the plan, with the first anniversary of the bar date, or filing deadline, coming up at the end of May, Harner asked the parties to come up with a timeline for her consideration at the next status hearing, scheduled for early June. The case will have been ongoing for more than a year and a half at that point, she said.

The archdiocese filed for Chapter 11 reorganization Sept. 29, 2023.

“We can always shift it, but I think deadlines help,” Harner said.

Edwin Caldie, who represents the unsecured creditors committee, said the archdiocese has been providing a lot of information. “There’s been a lot of interaction, there’s been a lot of work that’s being done by the parties in this case,” he said.

He also noted that he believes a good majority of the parties involved are focused on finding new and more efficient ways to come to an agreement.

Caldie reiterated his intention to ask the court for a third opportunity for victim-survivors of clergy sexual abuse within the archdiocese to tell their stories in court. Harner indicated her willingness to have an additional listening session. The two such sessions that have been held in court were not evidentiary, and Harner indicated it would be the same in the future.

Caldie noted that the judge may have been aware from news reports that the archdiocese’s Seek the City to Come planning initiative meant that some parishes would be merged. He expressed the victims’ lawyers’ concerns that some of the assets that might have been available for a settlement could become unavailable. He said an open discourse with counsel for the archdiocese has provided some reassurance and that a stipulation on the issue would be provided to the court.

Harner noted that in her position as judge, she tries to avoid reading or seeing media coverage that could affect her judgment in the case, but invited attorneys for all the parties to provide such information they thought would be helpful on the record through the court’s document portal.

Some attorneys for insurance carriers indicated they were satisfied with the amount of information and engagement they had with the process, while others noted that they felt they should have more engagement with the creditors committee. Harner said she appreciated the perspectives.

Hugh M. Bernstein, attorney for the U.S. Bankruptcy Trustee, said the archdiocese, as debtor, is keeping up with all the administrative requirements in the case, and that all the professionals involved are following the guidelines set by the judge. “From that perspective, at least, we do have an administratively well-run case,” he told Harner.

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