Diocesan Bankruptcy Battles Color Pope Francis’s First U.S. Visit

UNITED STATES
Wall Street Journal

By TOM CORRIGAN

As Catholic officials highlight Pope Francis’s inaugural U.S. visit as a time of spiritual renewal, the church here is seeking a different kind of renewal—in the courtroom.

Four dioceses are in active bankruptcy proceedings attempting to settle claims of sexual abuse by their clergy: Milwaukee, Wis.; Gallup, N.M.; Stockton, Calif.; and Minnesota’s Twin Cities.

Filing for bankruptcy temporarily freezes all litigation, giving a diocese breathing room to continue serving its flock while it negotiates a plan to compensate, and potentially reconcile with, abuse victims. (Pope Francis is expected to meet with victims during his visit, though it isn’t on his official itinerary.)

But chapter 11 doesn’t come cheaply. These cases, often filed on the eve of trial, can spark lengthy and hard-fought legal battles that not only take an emotional toll but also devour cash, cutting into funds available for both victims and churches’ charitable pursuits.

“The sin of sexual abuse affects more than just victims and their families,” said the Rev. James Martin, a Jesuit priest and editor at large at the Catholic magazine America. “Think of all the things that a diocese that has spent millions of dollars on settlements and lawyers could have done in terms of keeping parishes open and schools and scholarships.”

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