MILWAUKEE (WI)
Wall Street Journal
By TOM CORRIGAN
Dec. 18, 2014
After years of negotiations, a settlement has been reached with insurance carriers that would furnish the Roman Catholic Archdiocese of Milwaukee, which is at the center of the longest running and most contentious diocesan bankruptcy to date, with $10.3 million to settle allegations of sexual abuse.
The settlement, if approved by a bankruptcy judge, could provide hundreds of individuals who claim they were sexually abused by the archdiocese’s clergy with substantially more compensation than is currently being offered by the archdiocese.
According to court papers, the archdiocese’s insurance carriers initially refused to cover liabilities stemming from sexual abuse. But, four years of negotiations and four mediations sessions have finally brokered a deal.
“It’s another step forward in bring this case to resolution,” said Jerry Topczewski, a spokesman for the archdiocese.
The Archdiocese of Milwaukee, which filed for Chapter 11 bankruptcy protection Jan. 4, 2011, has offered $4 million to compensate about 125 of the more than 500 people who have sought compensation. The plan also provides another $500,000 to provide lifetime therapy, but abuse victims and their lawyers say that is not enough.
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