Diocese of Duluth Files for Bankruptcy Protection after Jury Award in Clergy

Journal Obsever
December 7, 2015

http://journalobserver.com/2015/12/diocese-of-duluth-files-for-bankruptcy-protection-after/

The diocese says it can't afford its almost $5 million share of the settlement.

Given the "magnitude" of the jury's award, "the diocese was left with no choice but to file for reorganization", wrote the Rev. James Bissonette, diocese vicar general, in a public statement. The Diocese says the bankruptcy is keeping with their approach at putting victims first.

"There is sadness in having to proceed in this fashion", wrote Bissonette.

The diocese says the move was necessary after efforts to reach a resolution with all abuse victims were unsuccessful.

The Duluth Diocese filed for Chapter 11 bankruptcy Monday, a month after a victim of priest sex abuse there was awarded $8 million in damages.

The Diocese will continue to operate during this bankruptcy process.

The bankruptcy filing "safeguards the limited assets of the diocese and will ensure that the resources of the diocese can be shared justly with all (clergy abuse) victims" while letting the diocese continue its daily work, he added.

The claims all were brought under the Minnesota Child Victims Act, an act of the state Legislature which opened a three-year window for abuse victims to file lawsuits that would otherwise be barred by statutes of limitation.