MINNESOTA
Minnesota Public Radio
Martin Moylan St. Paul, Minn.
Oct 7, 2014
If the Diocese of Winona files for bankruptcy as Bishop John Michael Quinn warned the Vatican in March, it could help the diocese negotiate its growing liability from monetary awards in clergy sex abuse lawsuits.
A bankruptcy filing would make the Winona diocese the first in the state — and at least the 12th in the nation — to seek bankruptcy protection.
• Timeline: U.S. Catholic dioceses and bankruptcy
A contemplation of bankruptcy is not surprising for the diocese, said Temple University law professor Jonathan Lipson, who has studied Catholic Church bankruptcies.
“So many dioceses have found that bankruptcy is an effective way, or could be an effective way,
A bankruptcy would freeze litigation against the church, including upcoming lawsuits involving sexual abuse. Its consideration was revealed in the thousands of pages of Catholic Church documents that Jeff Anderson, an attorney representing alleged victims of clergy sex abuse, released Tuesday, as part of one such case.
Among them was a draft letter to the Vatican from this past March from Winona Bishop John Michael Quinn.
In the letter, Quinn writes that the diocese anticipates existing and future sexual abuse lawsuits against priests will lead to bankruptcy.
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