MINNESOTA
Minnesota Public Radio
Martin Moylan Feb 4, 2015
The Archdiocese of St. Paul and Minneapolis filed for Chapter 11 bankruptcy on Jan. 16, a step that allows the church to operate as usual while reorganizing its operations and paying its creditors.
Federal bankruptcy Judge Robert Kressel, who is overseeing the process, has ordered the archdiocese and its creditors into mediation, where the parties will attempt to negotiate a settlement to reorganize the archdiocese and compensate victims of clergy sexual abuses.
Compromise is critical to mediation, as parties try to work toward a settlement that most — or many — can live with.
If mediation is successful, the archdiocese and its creditors can avoid moving the process to a federal bankruptcy courtroom — where the process can be more contentious than negotiation.
“Litigation is war,” said Roger Haydock, professor at the William Mitchell School of Law in St. Paul. “It’s civil war, but it’s war. To that extent, you try to get a peace treaty.”
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