Gallup Diocese Bankruptcy Case’s Costs Exceed $3.6 Million

Washington Times
February 8, 2016

http://www.washingtontimes.com/news/2016/feb/8/gallup-diocese-bankruptcy-cases-costs-exceed-36-mi/

Costs for the Diocese of Gallup’s bankruptcy proceedings have exceeded $3.6 million.

[ures, which come from quarterly billing statements submitted by attorneys, accountants and other professionals, do not include the more than $38,000 the diocese has paid the U.S. Trustee Program or other miscellaneous expenses, according to the Gallup Independent (http:]

The majority of the expenses will not be paid until the diocese has an approved plan of reorganization.

A bulk of the diocese’ bill is owed to Tucson, Arizona,-based law firm Quarles & Brady LLP, which has a total post-petition legal bill of more than $1.9 million. A Tucson accounting firm is also asking for more than $431,000.

The diocese Albuquerque-based law firm billed about $303 between Oct. 1 and Dec. 31, bringing their total bill to more than $12,000.

Two companies did not submit bills this quarter, but Insurance Archaeology Group, an insurance research company, to date has billed the diocese almost $49,000 and has been paid and real estate appraisal company Estate Valuation Consultants Inc. has been paid more than $22,000.

The Gallup diocese filed Chapter 11 reorganization bankruptcy in November 2013 in response to lawsuit alleging sexual abuse of children by clergy. The bankruptcy proceedings pertain to insurance policies the diocese reportedly had in the 1960s and ‘70s.