CALIFORNIA
Modesto Bee
By Sue Nowicki — snowicki@modbee
STOCKTON — Roman Catholic Bishop Stephen Blaire sent out a letter to parishioners last weekend, saying the Diocese of Stockton has not made a final decision on filing for bankruptcy protection, but “it appears likely.”
The move would shelter the diocese from paying large awards in current and future lawsuits claiming sexual abuse by priests, specifically against notorious pedophile ex-priest Oliver O’Grady and the Rev. Michael Kelly. To date, more than two dozen of O’Grady’s victims have collected nearly $25million in damages from the diocese; the largest settlement ever paid by the diocese to an individual was $3.75million in a lawsuit against Kelly last year.
In his letter, Blaire promised the 35 individual parishes in the diocese – which numbers 250,000 parishioners and includes St. Stanislaus, Our Lady of Fatima and Holy Family in Modesto, Sacred Heart in Turlock and St. Jude in Ceres, among others – would not be impacted by a bankruptcy filing because they are all separate corporations. So, too, are other diocesan programs: The Catholic high schools in Modesto and Stockton, Catholic cemeteries, Catholic Charities, a retreat center, SEEDS (which provides Catholic school tuition assistance) and the recent capital campaign drive.
The diocese’s operational budget, too, is a corporation called “The Roman Catholic Bishop of Stockton,” according to diocesan officials. That’s the one considering filing for bankruptcy. Its budget is $5.1million for the 2013-14 year.
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