MINNESOTA
Roman Catholic Archdiocese of St. Paul and Minneapolis
Q. Why is the Archdiocese of St. Paul and Minneapolis filing for Chapter 11 bankruptcy Reorganization?
A. We have realized that the way to most fairly respond to victims/survivors, given the limited resources of the archdiocese, was to file for Reorganization under Chapter 11 of the Bankruptcy Code (Reorganization). This will allow all resources available to be distributed equitably among victims/survivors and allow the archdiocese to continue essential ministry. The decision to file for Reorganization was reached after months of prayer, careful consideration and consultation with representative clergy and archdiocesan lay leadership groups and outside experts, as well as input from attorneys representing victims/survivors. We must all come together to care for those who have been hurt during this tragic time in our Church’s history.
Q. Is filing for bankruptcy a way to avoid compensating victims/survivors of clergy sexual abuse?
A. No. Reorganization is our best option to care for victims/survivors. It is the fairest way to respond because it allows available funds to be distributed equitably to victims/survivors. This is a continuation of our working relationship with victims/survivors’ counsel and not a deviation from it. By filing for Reorganization, we are not avoiding our responsibilities, but recognizing them.
Q. What does this mean for my parish or school?
A. Parishes, Catholic schools and other local Catholic entities are separately incorporated and are not part of this filling for Reorganization. (Most Catholic schools are parish ministries. Those that are not, such as most local Catholic high schools, are separately incorporated and are often run by religious orders.)
Q. I thought you settled all the sexual abuse cases against the archdiocese back in October at the time of the announcement with Jeff Anderson and Associates. So why do you need to Reorganize?
A. On Oct. 13, 2014, the archdiocese and Jeff Anderson and Associates reached an agreement to settle the Doe 1 litigation. It was not a settlement of all sexual abuse claims.
Also, as part of ongoing global settlement negotiations, the archdiocese is proceeding under a set of 17 child protection protocols.
Q. Couldn’t the archdiocese find another way to fairly resolve these claims?
A. We tried to identify other options, but were unable to find a solution that was as fair as Reorganization to address the many current claims and the potential future claims arising from the lifting of the Minnesota civil statute of limitations on sexual abuse of a minor. Reorganization is a process designed to bring parties together to resolve difficult claims fairly and with finality, under the neutral supervision of the bankruptcy court. This process resolves all claims collectively and fairly allocates resources to compensate victims/survivors. Through the court process we will find the fairest resolution possible for those harmed while still fulfilling our mission as a Church to make the name of Jesus Christ known and loved.
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