[See also the judge’s decision.]
Parishes are often shielded from litigation during federal bankruptcy proceedings, but Judge Heather Cooper said they potentially constitute the “largest assets” in the Burlington Diocese.
Parishes in the Diocese of Burlington, Vermont, are “not separate legal entities” from the diocese itself and may be included in bankruptcy proceedings related to Church abuse cases, a federal court ruled this week.
Judge Heather Cooper said in a July 28 decision in U.S. Bankruptcy Court that a committee of abuse victims could seek compensation from the reportedly “hundreds of millions of dollars” tied up in diocesan parishes and other assets.
The diocese had argued in part that opening those assets to legal proceedings would require “substantial” litigation “against over 64 defendants” linked to the diocese, though Cooper said that the federal bankruptcy process helps “streamline” such legal disputes.
Attorneys for the diocese also argued that the parishes…
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