Diocese of Great Falls Billings Files for Bankruptcy Protection from 72 Clergy Sex Abuse Lawsuits

Tamaki Law
April 3, 2017

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On March 31, 2017, just a few months before the first of many clergy sex abuse trials were scheduled to begin, the Diocese of Great Falls/Billings (covering most of Eastern Montana) filed for bankruptcy protection. Since 2012, the Great Falls Diocese has been defending 72 lawsuits, alleging childhood sexual abuse at the hands of clergy and nuns. The abuse took place over several decades from the 1950s through the 1990s.

This is the 15th bankruptcy filed by a Catholic Diocese in the U.S., and follows a bankruptcy filed by the Diocese of Helena (covering Western Montana) in 2012.

This bankruptcy will result in an automatic “stay” of all pending lawsuits, as the parties shift their focus to calculating the assets available to fund a potential settlement of these claims and any additional verified claims presented after the bankruptcy is filed.

According to Tamaki Law attorney Vito de la Cruz, who represents 34 of the 72 abuse survivors with pending lawsuits, “the abuse my clients suffered at the hands of Diocesan and religious order priests and nuns has caused profound suffering, hardship, and despair over their entire lives. However, with the Diocese filing bankruptcy instead of fighting each case individually, which would have taken years if not decades, abuse survivors hope that they will receive a measure of justice and accountability within a reasonable period of time.”

It is anticipated that the Diocese, its liability insurer, and the abuse survivors will participate in settlement discussions later in 2017.