IN RE ARCHDIOCESE OF MILWAUKEE

MILWAUKEE (WI)
Leagle

In re: Archdiocese of Milwaukee, Chapter 11, Debtor.
Case No. 11-20059-svk.
United States Bankruptcy Court, E.D. Wisconsin.

February 17, 2012.

MEMORANDUM DECISION ON DEBTOR’S OBJECTION TO CLAIM NO. 131 FILED BY CLAIMANT A-49

SUSAN V. KELLEY, Bankruptcy Judge.

The Archdiocese of Milwaukee (the “Debtor”) objected to Proof of Claim number 131 (the “Claim”) filed by an individual who will be referred to in this decision as Claimant A-49.1 The Debtor moved for summary judgment, arguing that the Claim should be disallowed because the Debtor and Claimant A-49 participated in pre-petition mediation, resulting in a settlement agreement and release. The Debtor also contends that the Claim is time-barred under Wisconsin’s Statute of Limitations.

The summary judgment motion was fully briefed, and the Court heard oral argument on the motion on February 9, 2012.2 After consideration of the written submissions and the argument of counsel, the Court issued an oral ruling at the hearing, which is memorialized by this decision. For the reasons stated below, the Court grants the Debtor’s Motion for Summary Judgment and disallows the Claim.

I. BACKGROUND

The Debtor filed a voluntary petition for relief under chapter 11 of the Bankruptcy Code on January 4, 2011. On October 7, 2011, Claimant A-49 filed the Claim, alleging that Father David Hanser, Associate Pastor of St. John Vianney Parish in Brookfield, Wisconsin, sexually abused Claimant A-49 in 1977 or 1978, when Claimant was 7 years old. The Claim indicates that the Debtor established a mediation program for victims of clergy sexual abuse, and that Claimant A-49 participated in the mediation program and settled his claim for $100,000. In January 2007, the Debtor and Claimant A-49 executed an Agreement and Mutual Release (the “Settlement Agreement”). (Affidavit of Francis LoCoco, Exh. A, filed 12/20/11 under seal).

On December 20, 2011, the Debtor filed an Objection to the Claim, urging disallowance under 11 U.S.C. § 502(b)(1) because the Claim is “unenforceable against the debtor . . . under any agreement or applicable law.” The Debtor also moved for summary judgment, claiming that even if all factual allegations are presumed true, the Claim cannot be allowed as a matter of law. The Debtor argued that under the Settlement Agreement, Claimant A-49 released the Debtor from any and all liability for any action described in the Claim.3

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