MINNESOTA
Star Tribune
Article by: JEAN HOPFENSPERGER , Star Tribune Updated: January 16, 2015
Archdiocese declares bankruptcy. Victims’ attorney supports the church’s move, but other victims say filing is a cop-out.
The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 bankruptcy protection Friday, saying it cannot meet its financial obligations from an unprecedented wave of clergy sex abuse lawsuits.
“I make this decision because I believe it is the fairest and most helpful recourse for those victims/survivors who have made claims against us,” wrote Archbishop John Nienstedt on the archdiocese’s website Friday morning.
In a Friday afternoon news conference, Nienstedt said, “We continue to facilitate the healing process for this local church” to restore confidence in the church.
“Obviously, we have a long journey ahead of us,” he said.
The move freezes lawsuits against the church, protecting the archdiocese from creditors while allowing it to develop a reorganization plan.
“Reorganization will allow the finite resources of the Archdiocese to be distributed equitably among all victims/ survivors,” Nienstedt said. “It will also permit the Archdiocese to provide essential services required to continue its mission within this 12-county district.”
Nienstedt said he does not intend to resign. …
Jeff Anderson, the St. Paul attorney handling most of the clergy sex abuse cases, supported the archdiocese’s filing for bankruptcy. “It is our belief that the action taken today is necessary,” Anderson said Friday.
But other victims’ advocates charge that the move is one more example of the archdiocese shirking its responsibility to abuse victims.
“Why is it that when all the dioceses file bankruptcy, they do it on the eve of a trial?” asked Bob Schwiderski, longtime advocate for abuse survivors. “Is it because they can’t put their hand on the Bible and swear to tell the truth?”
Schwiderski was referring to three clergy abuse trials slated for Jan. 26, that will now be halted. The bankruptcy also halts all future trials.
All cases and claims will be reorganized in bankruptcy court, Anderson said.
“The good news is that the Archdiocese of St. Paul and Minneapolis has insurance and it has a lot of it,” he said.
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