Gallup diocese owes $3.5M in costs

By Olivier Uyttebrouck
Albuquerque Journal
February 9, 2016

http://www.abqjournal.com/720652/news/gallup-diocese-owes-35m-in-costs.html

ALBUQUERQUE, N.M. — Legal and professional costs in the Diocese of Gallup’s Chapter 11 bankruptcy case exceeded $3.5 million through Dec. 31, new filings in the case show.

An Arizona law firm representing the diocese, Quarles & Brady LLP of Tucson, is seeking fees and expenses totaling $1,994,521, according to a disclosure statement filed this month.

A Los Angeles firm, Pachulski, Stang, Ziehl & Jones LLP, is seeking payment for $1,060,274 in fees and expenses. The firm represents 57 alleged victims of sexual abuse by priests who have filed claims in the case.

Most legal costs will remain unpaid until a reorganization plan has been approved by presiding U.S. Bankruptcy Judge David T. Thuma.

The diocese so far has made payments of $46,433 to Insurance Archaeology Group of Tucson and $22,100 to Estate Valuation Consultants Inc. of Albuquerque.

Attorneys agreed on the financial terms of a settlement in mediation talks in December, but details of the plan remain under discussion.

The Diocese of Gallup became the ninth Roman Catholic diocese to file for Chapter 11 bankruptcy in 2013 in response to civil lawsuits filed against the diocese on behalf of alleged victims of sexual abuse by priests. To date, 13 U.S. dioceses and two religious orders have filed for bankruptcy.