Author Archives: Shelby Kostolni

Diocese of Fresno June Update

The Official Committee of Survivors continues to be actively involved in all aspects of the Diocese of Fresno bankruptcy case. We are providing this update to keep Survivors informed about what has happened in the case and what comes next.

  1. Mediation Scheduled for the End of June

The Court has directed the parties to participate in formal mediation at the end of June. Representatives of the Official Committee, the Diocese, the insurance companies, and their professionals will take part. Mediation is a confidential process in which the parties work with a neutral mediator to try to resolve disputes and move the case toward a settlement. Because mediation is confidential, we may not be able to share details about what happens during those discussions unless all parties agree that the information can be made public.

  1. Committee Reviewing Financial Information

The Court approved the Official Committee’s request to obtain documents and information about the Diocese’s and the Christian Brothers’ pension programs. Pulling information like this together is part of the bankruptcy process. The Committee has a responsibility to understand the Diocese’s financial situation as completely as possible, including its assets, obligations, and insurance coverage. Gathering and reviewing this information helps the Committee advocate for Survivors and make informed decisions as the case moves forward.

  1. Court Approved Sale of a Home

The Diocese asked the Court for permission to sell a single-family home. Before taking a position on the request, the Official Committee and its real estate professionals reviewed the proposed sale, including the sale price, the marketing process, and any restrictions that could affect the property’s value. Based on that review, the Committee did not object, and the Court approved the sale. The money from the sale will be held in a separated account, so it remains available to become part of the bankruptcy settlement.

If you have questions about the bankruptcy process or comments for the Committee, you can contact us at fresnosurvivorteam@stinson.com. All messages are treated confidentially. As always, you should contact your attorney with any questions about your individual claim.

Survivor Victory in California

A jury in Alameda Superior Court (Oakland) found this week that one Survivor deserves to be paid $16 million for abuse he experienced in the Diocese of Oakland. The Survivor was abused by a priest who had previously been arrested for abuse, but was then moved to another post. The same priest had been accused of abuse in several other lawsuits. 

Rick Simons, lead trial attorney for the Survivor commented “This is a case about accountability, it’s about justice. It’s about the Survivor finding his voice and regaining his power. We stand with him on this momentous day.” Jeff Anderson, another attorney representing the Survivor commented “Today’s verdict reflects years of resilience and determination, driven by an unwavering pursuit of truth and justice. This moment belongs not only to the Survivor, but to every survivor who has stood up and spoken up.”  

The Diocese of Oakland is in bankruptcy, but this trial was able to proceed because the bankruptcy stay was lifted to allow a small number of Survivor lawsuits to proceed. Details regarding the case can be viewed via this link. Please be aware that details may be difficult to read and re-traumatizing for some Survivors.  

This result makes clear, once again, that Survivor claims are valid and serious and that the Church and its insurers face very significant financial responsibility for Survivor claims in all Catholic Church bankruptcies. The outcome also reflects the bravery and tenacity of the Survivor who agreed to stand up to the Church and its large insurers, and to face down the most difficult experiences of his life, in order to help other Survivors in the Diocese of Oakland and across the country. 

March 2026 Update

Background

The Diocese of Fresno (the “Diocese”) filed for bankruptcy on July 1, 2025, in the Bankruptcy Court for the Eastern District of California. At the start of the bankruptcy case, a committee of seven survivors with claims in the bankruptcy was appointed, called the Official Committee of Unsecured Creditors (the “Committee”), to advocate on behalf of all survivors that file claims in the Diocese of Fresno’s bankruptcy case.

Committee Professionals

The Committee has sought and obtained Court approval to employ various professionals to assist the Committee in its work for survivors. Those professionals, and the role each plays, is summarized below:

  1. Stinson LLP is the Committee’s lead bankruptcy law firm and has experience representing survivor committees in more than 15 bankruptcy cases filed by the Catholic Church entities. Fennemore LLP is the Committee’s local bankruptcy counsel and has experience and familiarity with practicing in the California bankruptcy courts.
  2. Burns Bair LLP serves as the Committee’s special insurance counsel. Burns Bair LLP will assist the Committee by providing analysis regarding the scope of the Diocese’s insurance assets and legal expertise for any issues that need to be litigated with the Diocese’s insurers.
  3. FTI serves as the Committee’s financial advisor. FTI will review the Diocese’s financial position, including the financial documents the Diocese has filed with the Court and will produce to the Committee. FTI will investigate the Diocese’s assets, assist the Committee with recovering assets for the benefit of survivors, and advise the Committee on the scope of assets that should be part of a settlement with survivors.
  4. Stout Risius Ross LLC serves as the Committee’s claims valuation and real estate expert. Stout will evaluate the claims filed by survivors to support the Committee’s positions in settlement negotiations with the Diocese and its insurers. Stout will also evaluate the Diocese’s real property assets to help the Committee determine the value of the Diocese’s real property. 

Each of these professionals will work together to provide the Committee with an understanding of the assets that are available to pay survivors and the services necessary to ensure recovery for survivors can be maximized. The Committee, in connection with its bankruptcy counsel and attorneys representing survivors, will also be focused on ensuring the Diocese adopts protocols designed to provide transparency regarding the Diocese’s involvement in the sexual abuse of survivors and to protect children in the future.

Claims Bar Date

The deadline to file a claim in the bankruptcy case, also known as the “bar date,” occurred on February 2, 2026. One hundred and sixty-five (165) survivors filed a claim before the bar date. If you have questions about the status of your claim filing you should contact your attorney if you are represented, or if you aren’t represented you may email fresnosurvivorteam@stinson.com with questions.  Please know that Stinson may answer general bankruptcy procedure questions but not advise you on your individual case.

Mediation

Now that the bar date has passed, the case will move into a mediation phase. Mediation is a negotiation process, conducted out of court, designed to produce a settlement between the Committee, the Diocese, and the Diocese’s insurers. Typically, a neutral party, like a judge from another court or an attorney with no connection to the case, will act as a mediator to assist the parties’ efforts to reach a settlement. The Committee is currently working with the Diocese to identify a mediator and expects the mediation to begin in earnest in the coming months.   Mediation follows strict rules of confidentiality.  When any information may become public the Official Committee will post it to this website but normally there will be few if any details shared during mediation until any agreements are reached.

What to Expect Moving Forward

Diocesan bankruptcy cases typically go through several phases that take a great deal of time.  For a discussion of the bankruptcy process please check this link.

If you have any questions or concerns, please don’t hesitate to reach out to the Committee’s legal counsel Stinson LLP by emailing fresnosurvivorteam@stinson.com

Updates from the Committee will be posted on the Committee’s website at: www.fresnosurvivors.com when possible.

Do you have questions?

For most Survivors, the bankruptcy process is completely new and sometimes confusing.  This website will be updated as the bankruptcy progresses with information that may be shared publicly.  If you are a Survivor and have questions about your individual case, you should communicate with your attorney if you are represented.  Stinson LLP, the Official Committee of Survivors’ legal counsel in this bankruptcy may not provide individual legal advice.  However, Stinson may help explain the bankruptcy process in general and provide assistance in certain circumstances.  Please do not hesitate to email Stinson via fresnosurvivorteam@stinson.com.  Your questions and comments are important, treated confidentially, and all correspondence will receive a reply.