Archdiocese, victims fail to reach bankruptcy settlement

MILWAUKEE (WI)
Milwaukee Journal Sentinel

By Annysa Johnson of the Journal Sentinel

Oct. 15, 2012

The court-ordered mediation between the Archdiocese of Milwaukee and victims of sexual abuse has failed, sending the parties back to the U.S. Bankruptcy Court to resume what one court official has called a scorched earth legal battle.

The church and victims — at 575 members, they represent the largest class of creditors in the bankruptcy — have been in court-ordered mediation since July 20.

Victims attorney Jeffrey Anderson confirmed Monday that the mediation had failed but declined to elaborate on the sticking points, citing the confidentiality of the proceedings.

He said victims would now move forward to force the disclosure of thousands of pages of documents now under court seal, and to scrutinize the transfer of millions of dollars off the church’s books into trusts in the years before the bankruptcy.

The lack of a resolution “puts us back to where we were, ready to move forward with all the issues and battles that need to be fought.”

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