BishopAccountability.org

Diocese and Child Sexual Abuse Victims Choose Mediator

By Dan Romano
WDAY
February 16, 2016

http://www.wday.com/news/3948833-diocese-and-child-sexual-abuse-victims-choose-mediator

The Diocese of Duluth and attorneys representing child sexual abuse victims have agreed to enter mediation for victim claims.

The Diocese of Duluth filed for bankruptcy in December, saying the move will allow them to protect assets and pay out what is due to victims. However, Judge Robert Kressel encouraged the Diocese and all parties involved to work with a mediator.

Gregg Zive, a federal judge with experience in diocesan bankruptcy cases, is expected to approved as mediator by Judge Kressel.

"He's a federal bankruptcy judge out of Nevada, and he has mediated a number of cases like this in Catholic abuse cases across the country where the diocese or religious organization was in bankruptcy. He's been very successful at that," said Mike Finnegan, attorney from Jeff Anderson & Associates, the law firm representing a number of the victims in this case.

A diocese official testified that, as of November, the church maintained net assets of more than $5 million and total liabilities of over $12 million.

Representatives for the victims are worried the Diocese is hiding funds.

"In all of these cases, one of the things that we will be doing is scrutinizing the Diocese's assets, but also separate from that, the Diocese also had insurance going back years and years. So, there are a number of insurers that will probably be involved in this case as well," said Finnegan.

Mediation is expected to begin May 1 in Minneapolis if neither side objects to the appointment of Zire as mediator.

Victims have until May 25 to file sexual abuse claims in bankruptcy court.

 




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