A federal judge has rejected the Oakland Catholic Diocese’s fourth proposed bankruptcy plan for resolving hundreds of clergy sexual abuse claims, ruling that the diocese had not provided sufficient grounds for approval and questioning key financial estimates. In a 109-page decision issued Friday, U.S. Bankruptcy Judge William J. Lafferty said the diocese was not entitled to more lenient treatment because it is a religious institution. The bankruptcy process should not treat the church differently from other nonprofits or businesses, he wrote. Lafferty also questioned the plan’s estimates of the diocese’s real estate holdings and its expected obligations to survivors. The diocese owns churches, cemeteries and other properties across the East Bay. A nine-member committee representing survivors opposed the plan, arguing that the properties and other assets had been undervalued. The diocese filed for Chapter 11 bankruptcy in 2023 after facing hundreds of lawsuits alleging sexual abuse by priests over several decades. Initial bankruptcy documents put its liabilities between $100 million and $500 million and described claims involving 330 survivors. In 2024, the diocese was accused of concealing more than $106 million in assets that could have been used to compensate survivors; that allegation was not resolved by Friday’s ruling. Lafferty recognized that the latest proposal sought to provide meaningful compensation while allowing the diocese to continue its religious work. But after more than three years of proceedings, the case has produced no payments to survivors. The judge urged the parties to resume negotiations, saying his decision could help them reach a plan that satisfies both sides. Jeff Anderson, a lawyer representing survivors, called the decision a victory and accused the diocese and its bankruptcy lawyers of using hardball tactics that obstructed survivors’ efforts to obtain justice and transparency. Oakland Bishop Michael C. Barber described the ruling as a setback but said the diocese remained committed to reaching a resolution and serving its roughly 500,000 Catholics. The diocese has also announced plans to close 12 parishes and its pastoral center as the bankruptcy case continues. The Oakland case is part of a wider reckoning over clergy abuse in the Bay Area. In June, the Archdiocese of San Francisco agreed to a $400 million settlement with survivors.