SAN DIEGO (KGTV) — The Zalkin Law Firm is expected to announce on Wednesday the filing of a 479-page lawsuit against the Roman Catholic Bishop of San Diego, a Corporation Sole, and every Catholic Parish in San Diego.
The lawsuit alleges that in September of 2019, the Catholic Diocese of San Diego fraudulently transferred assets to separate parish corporations it created to avoid paying settlements or judgments in potentially hundreds of pending lawsuits.
"That is a fraudulent transfer to avoid creditors and these survivors are creditors," Attorney Irwin Zalkin said.
Zalkin represents more than 100 of the nearly 400 victims suing the Diocese.
On February 10, The Roman Catholic Diocese of San Diego announced that it is considering filing for Bankruptcy protection for the benefit of sexual abuse victims. The Diocese says it spent $198 million settling 144 lawsuits in 2007 and could not pay a similar amount now, even with insurance.
The new lawsuit filed by Zalkin Law Firm seeks to set aside the transfers of 291 real estate parcels from the Diocese into “California Real Property Support Corporation(s) (RSPCs)” that were formed by the Diocese for each affected parish.
"They [the Diocese and parishes] have developed a PR spin on how they're concerned and they want to do the right thing by victims but at the end of the day it's all about money and protecting their assets," Zalkin said.
The Catholic Diocese of San Diego sent ABC 10News a statement following Zalkin's announcement.
“Since the founding of the Diocese of San Diego in 1936, under canon law the assets of each parish have been separate and independent from the Diocese.
“Over 10 years ago, long before Assembly Bill 218 was introduced, the Diocese began the process of formalizing in civil law the separate legal status of each parish and its assets. This included recording proper legal title for each parish to its own real estate.
“The Diocese has a profound obligation and moral duty to use its own assets to equitably compensate survivors. As Cardinal McElroy said in his recent letter announcing that bankruptcy was under consideration:
‘The sexual abuse of minors by priests and the way it was handled in the life of the Church constitute the greatest sin of our Church in the last century. We must and will continue to protect minors with even deeper vigor, provide healing resources to those who have been abused, and use our Diocesan assets to compensate those who were victimized. And we will never forget the harm that we have done.’”
