Lowenstein Helps Secure Settlement for Survivors of Sexual Abuse in Bankruptcy of Franciscan Friars of California

The Franciscan Friars of California, Inc. and certain of its affiliates have reached a $20 million settlement agreement in the Friars' Chapter 11 bankruptcy case with the Official Committee of Unsecured Creditors, represented by Lowenstein Sandler's Bankruptcy & Restructuring Department. The settlement contemplates the establishment of a trust for the roughly 95 survivors of sexual abuse asserting claims against the Friars, which will be funded with the $20 million settlement payment from the Friars, its affiliates, and proceeds from the settlements with the Friars' insurers. The agreement remains subject to Bankruptcy Court approval.

The settlement is the culmination of over 13-months of mediation among roughly 15 parties.

The Friars is the first California-based religious entity to have filed for bankruptcy after the California statute of limitations was revived-allowing time-barred sexual abuse claims to be asserted for a period of time-to announce a settlement between the debtor and survivors of sexual abuse.

Lowenstein was selected in 2024 to represent the Committee in this case; the firm also serves as counsel to committees representing the interests of survivors in the Chapter 11 bankruptcy case of the Roman Catholic Bishop of Oakland California, and the Diocese of Camden, New Jersey.

The Lowenstein team includes Jeffrey D. Prol, Brent Weisenberg, Nicole M. Fulfree, Erica G. Mannix, and Jake A. Rauchberg.

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