Diocese of Alexandria, La., files for bankruptcy to address abuse claims filed under lookback law

(OSV News) -- The Diocese of Alexandria, Louisiana, has filed for bankruptcy to address dozens of abuse claims, the total number of which may rise under that state's extended "lookback law."

One of the U.S. Catholic Church's "home mission dioceses," Alexandria filed for Chapter 11 reorganization Oct. 31, stating on its website that so far 85 claims have emerged in the wake of Louisiana's legislative window to file abuse lawsuits, regardless of when the abuse occurred.

As a "mission" diocese -- one which receives sustained aid, including funds from an annual collection taken up by the U.S. Catholic bishops, in order to provide basic pastoral services -- Alexandria's "resources are scarce," said Bishop Robert W. Marshall Jr. in an Oct. 31 message to the faithful posted to the diocesan website.

The diocese noted on its bankruptcy information page that the number of claims is expected to rise.

Louisiana's 2021 lookback law, which was set to expire in June 2024, was initially overturned and then reaffirmed by the Louisiana Supreme Court, with the state's Legislature also passing a law to extend the window to 2027.

"We are at this moment for one reason: some priests sexually abused minors," Bishop Robert W. Marshall Jr. wrote in his Oct. 31 letter.

"For that, I feel deeply ashamed," he wrote. "As your bishop, I apologize to abuse survivors for the harm, pain and suffering they experienced and continue to experience in their lives."

He added, "I also want to apologize to all the faithful priests, deacons, religious and laity whose ministry may have a shadow cast upon them by this next step in the process."

The diocese stated on its website that "more than half" of the claims it now faces "involve allegations from the 1970s or earlier," and that "nearly all the claims which include the name of the alleged perpetrator are allegations against individuals who are dead."

Bishop Marshall said that filing for bankruptcy, which he described as "not an easy decision," will allow the diocese to "as fairly as we can … compensate those who have been harmed" while carrying on "the essential ministries of the diocese" to serve parishes, parishioners and "others who rely upon the Church for assistance."

He noted that "this bankruptcy applies only to the diocese itself," since the diocese's "parishes and other Catholic entities are separately incorporated under state law and are not affected by this filing."

On its bankruptcy information page, the diocese said that any proceeds from parish property consolidation and sales will "remain with the parish to be used for the needs of its people," and that "no funds will be given to the Diocese."

The diocese also said it "believes it can contribute $4 million to a Plan Trust that will be used to compensate abuse survivors."

In addition, the diocese noted that it has "limited insurance coverage remaining from previous decades when the abuse in the claims was alleged to have occurred."

However, said the diocese, "a significant number of claims fall in periods where there is no insurance available," and that while "any applicable insurance will be utilized," the monies "will not be sufficient to satisfy the expected number of claimants."

At the same time, the diocese stressed on its information page that "contributions to specific appeals or funds … are restricted funds that can only be used for the specific purpose for which they were collected," and will not be tapped "to resolve debts or claims."

The diocese estimated the bankruptcy proceedings to cost between "$1-2 million," an amount "significantly lower than most other Chapter 11 proceedings involving Dioceses and Archdioceses in the United States."

The Archdiocese of New Orleans, which has edged closer to a settlement in its long-running bankruptcy case, confirmed to OSV News Nov. 3 that its legal fees for Chapter 11 proceedings currently total some $50 million.

OSV News has found that from 2004 to 2024, U.S. Catholic dioceses collectively paid a total of more than $5 billion to settle abuse claims.

The Diocese of Alexandria admitted on its website that "bankruptcy is a lengthy and costly process," and "even though this case is not complicated, the entire proceeding could
last 18-24 months."

In his letter to the faithful, Bishop Marshall said, "Our hope is that the diocese can reach a global settlement with those who have claims in the very near future.

"We have already been in negotiations for some months with a group of lawyers whom we understand represents the vast majority of currently known abuse survivors," he wrote. "If we can reach an agreement toward the beginning of the case, we would be able to avoid the lengthy delays and unnecessary professional fees that would otherwise result."

Bishop Marshall pledged transparency throughout the bankruptcy proceedings, directing the faithful to visit the diocesan website, diocesealex.org, for updates.

He said the diocesan pastoral plan, "Together as One Church," would continue amid the proceedings, with the diocese clarifying that the plan had been "initiated in response to the needs" of current and future parishioners.

"We can no longer ignore current trends, such as declining Mass attendance and number of baptisms, or financially sustain our present number of parishes," said the diocese on its bankruptcy information page.

In a separate video message to the faithful embedded on the diocesan website, Bishop Marshall urged a reliance on faith and mutual support amid the bankruptcy process.

"With all of its human failings, the Catholic Church continues to be one of the world's great forces for good, thanks to the ever-present guidance of the Holy Spirit and the everyday goodness of its faithful people," he said. "As a church, we bear the shame of this scandal, but if we lean on each other and together rely on Jesus Christ, as a church, we will be renewed, and together bear much fruit for the kingdom of God."