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  Court Approves Diocese's Payments for Legal Expenses

By Sandi Dolbee
Union-Tribune
August 9, 2007

http://www.signonsandiego.com/news/metro/20070809-1656-bn09diocese.html

Justice may be blind but it's not cheap.

U.S. Bankruptcy Judge Louise DeCarl Adler Thursday approved payment of $421,000 to a San Diego law firm and an accounting agency assisting the Catholic diocese in its Chapter 11 reorganization case.

That brings to more than $2 million the bills for legal costs and associated expenses – just through May. By summer's end, the fees are estimated to be twice that amount.

And this does not include the cost of the court-ordered report on parish finances, which is anticipated to reach into seven figures, according to R. Todd Neilson, the financial expert who headed the examination. A hearing on the report is scheduled for Aug. 23.

The Roman Catholic Diocese filed for bankruptcy Feb. 27, just before the first trial in the civil lawsuits alleging child sex abuse by clergy was due to begin. Under bankruptcy law, the diocese has to pay for costs incurred by both itself and the creditors.

 
 

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