Bankrupt Oakland Diocese Needs ‘Day of Reckoning,’ Mediator Says

A judge and two mediators handling the Oakland diocese bankruptcy told attorneys involved that a settlement must be reached or the case could be dismissed without a resolution to hundreds of sex abuse claims.

The diocese, its insurers, and a committee representing clergy abuse survivors will participate in mediation for two days in early October. The diocese previously proposed a bankruptcy exit plan that would address the abuse litigation, but wasn’t able to get abuse claimants and insurers on board.

Diocese attorney Matt Lee of Foley & Lardner LLP during a Monday status conference in the US Bankruptcy Court for ...