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Insurance

Oct. 29, 2025

Insurers, creditors clash over Sacramento Diocese bankruptcy deal

Two insurer groups are challenging a deal in the Sacramento Diocese bankruptcy allowing four sexual abuse cases to proceed, in a hearing that could influence similar disputes nationwide.

Insurers, creditors clash over Sacramento Diocese bankruptcy deal
Senior U.S. District Court Judge William B. Shubb

SACRAMENTO -- Attorneys for insurers and creditors suing the Roman Catholic Diocese of Sacramento squared off in a lengthy federal court hearing on Monday. Two insurer groups are objecting to a deal in bankruptcy court between the diocese and creditors to allow four of the 227 sexual abuse cases to move forward.

The case could have wider implications, with other dioceses around the state and the country involved in bankruptcy decisions brought on by civil sexual abuse claims. *I...

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