Bankrupt Oakland Diocese Loses Bid to Defer Attorney Fee Payment

The diocese of Oakland, Calif. failed to convince a bankruptcy judge to defer payment of legal fees until the end of its Chapter 11 proceeding, which has been in a stalemate for months.

The diocese’s request to amend its interim compensation procedures to include a 100% monthly fee holdback, which would’ve paused payments for lawyers whose fees are covered by the diocese’s estate, was denied without prejudice during a Wednesday hearing by Judge William J. Lafferty of the US Bankruptcy Court for the Northern District of California.

Lawyers for a committee representing around 350 sex abuse claimants are among those ...