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Bankruptcy Won’t Affect Local Parishes

By Jerry Burnes
Mesabi Daily News
December 9, 2015

http://www.virginiamn.com/news/local/diocese-bankruptcy-won-t-affect-local-parishes/article_4690156e-9ede-11e5-a0d0-c35e1b2ba73d.html

A bankruptcy protection filing by the Diocese of Duluth isn’t expected to affect day-to-day operations at the local level.

Rev. James Bissonette, vicar general of the diocese, said his knowledge of the process is that the diocese’s assets go under review and not its services.

“My understanding is that the day-to-day operations of the parishes and schools will remain the same,” he said.

The diocese filed for Chapter 11 bankruptcy Monday, a month after a victim of priest sex abuse was awarded $8 million in damages. The diocese was found responsible for $4.8 million. On its website, the diocese says the award is greater than its annual budget of $3.2 million.

“If you put together the diocese’s limited assets and its insurance coverage, it doesn’t add up to anywhere near $4.8 million,” said Susan Gaertner, an attorney representing the diocese.

The Diocese of Duluth covers northern Minnesota parishes and 10 counties with Cass to the west, Koochiching to the north, Cook to the east and Pine to the south. Its role with local parishes is to act as a governing body, Bissonette said, in terms of teaching the faith and overseeing pastors and celebrations.

“The bishop is the one who governs and the pastors watch over the community,” he added.

The diocese is the 15th in the nation to file for bankruptcy over sexual abuse claims, and follows the Archdiocese of St. Paul and Minneapolis, which declared bankruptcy last January.

Five other cases against the Diocese of Duluth are pending in State District Court, and 12 more claims have been filed but not brought to court.

Mike Finnegan, a St. Paul attorney for Jeff Anderson and Associates, said his firm represents about 30 abuse victims from within the Diocese of Duluth.

He added that his clients are not trying to disrupt operations or force the sale of assets.

 

 

 

 

 




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