MINNESOTA
The Catholic Spirit
On Jan. 16, the archdiocesan corporation filed a petition for Reorganization under Chapter 11 of the U.S. Bankruptcy Code. This decision came after months of consideration and consultation with clergy and lay leadership and input from attorneys representing victims/survivors of clergy sexual abuse. Archbishop John Nienstedt and other archdiocesan leaders determined the way to respond most fairly to victims/survivors, given the finite resources of the archdiocese, was to file Chapter 11 Reorganization. This will allow all the resources available to be distributed equitably among all victims/survivors and allow the archdiocese to continue essential services to fulfill mission of the Catholic Church.
“This is not easy news to share,” said Archbishop Nienstedt. “However, over the past six to seven months, I have looked at all the options available to us and I am convinced that this decision is in the best interests of the victims/survivors and the archdiocese as a whole. I believe that it is consistent with our goal of putting victims/survivors first.”
The archdiocese has 21 pending clergy sexual abuse cases, and faces the potential for more than 100 additional suits. These cases are coming forward now because of the lifting of the civil statute of limitations on child sexual abuse under the Minnesota Child Victims Act signed into law in 2013.
The total cost to separately settle or go to trial with each pending or future claim is impossible to determine definitively. It is unknown how many additional claims there could be before the open statute of limitations window on historical claims closes in May 2016.
Although the archdiocese has insurance coverage, that coverage may not be available to pay every claim or the full amount of every claim. There are a number of reasons for this. For example, some of the archdiocese’s carriers are now insolvent; in other cases the archdiocese’s policies may require that the archdiocese fund legal verdicts before the carrier would pay (similar to a deductible on an auto policy), and policy limits may excuse carriers from covering full verdict amounts.
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