As previously reported, in September 2023, the Catholic Archdiocese of Baltimore filed for bankruptcy protection in advance of the Oct. 1, 2023 effective date of the Maryland Child Victims Act. That Act removed the statute of limitations for civil actions by victims of sexual abuse that occurred while the victim was a minor. However, in an amendment enacted this year (full text), the Maryland legislature reduced the amount of noneconomic damages that can be recovered in suits under the Act. The new limitation applies to actions filed on or after June 1, 2025. In In re Roman Catholic Archbishop of Baltimore, (D MD Bkrptcy, May 2, 2025), a bankruptcy court judge issued an order allowing survivors of child sexual abuse to file and serve a complaint against the Archdiocese and its insurance companies in Maryland courts before June 1 so, if the bankruptcy reorganization is not completed, victims will not be bound by the new limitation on damages. Without this modification, the automatic stay provisions of the Bankruptcy Code and the bankruptcy court’s orders in the case would have prevented the filling of claims while the reorganization proceedings were pending. Baltimore Banner reports on the bankruptcy court’s action.
