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  Milwaukee Catholic Diocese to File Bankruptcy

WFRV
January 4, 2011

http://www.wfrv.com/news/local/Milwaukee-Catholic-Diocese-to-file-bankruptcy-112879474.html

The Catholic Archdiocese of Milwaukee has directed its attorneys to file for bankruptcy protection, saying pending sexual-abuse lawsuits have left it with debts it can't pay.

Archbishop Jerome Listecki said Tuesday the archdiocese was undergoing Chapter 11 reorganization so that it would be able to continue its mission as a church while compensating victims of sexual abuse.

"In my installation homily on January 4, 2010, I spoke of the devastation of sin and its effect on us personally and as a community," Archbishop Jerome Listecki said in a statement. "We see the result of that sin today. This action is occurring because priest-perpetrators sexually abused minors, going against everything the church and the priesthood represents."

Click on the video player to watch the news conference in its entirety.

The cases in Milwaukee include allegations that one priest sexually abused some 200 boys at a suburban school for deaf students from 1950 to 1974.

The archdiocese had been in mediation with some victims, but that stalled last month after the men said they wanted church documents and other agreements released along with money.

Listecki said that failed mediation meant the diocese would likely face additional lawsuits. The bankruptcy reorganization was the best way to ensure the church could meet its financial obligations, he said.

The abuse scandal has already cost the Milwaukee archdiocese more than $29 million. Listecki said the diocese has addressed nearly 200 claims over the past 20 years.

"Since 2002, we have sold property, liquidated savings and investments, eliminated ministries and services, cut archdiocesan staff by nearly 40 percent, and put all available real estate on the market in order to free up resources," he said.

Seven other U.S. Catholic dioceses have sought bankruptcy protection from sex abuse claims since the clergy abuse scandal erupted in 2002 in Boston. Those dioceses are in Davenport, Iowa; Fairbanks, Alaska; Portland, Ore.; San Diego; Spokane, Wash.; Tucson, Ariz.; and Wilmington, Del.

Under Chapter 11 reorganization, the archdiocese will continue to conduct its normal activities. However, the bankruptcy court will have to approve all non-routine decisions and expenses.

The Milwaukee archdiocese has about 640,000 members in 210 parishes. Listecki says those parishes are individually incorporated, so the bankruptcy proceedings should not affect their finances.

 
 

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