MINNESOTA
Star Tribune
By Jean Hopfensperger Star Tribune DECEMBER 7, 2015
The Duluth Diocese filed for Chapter 11 bankruptcy Monday, a month after a victim of priest sex abuse there was awarded $8 million in damages. The diocese was found responsible for $4.8 million.
The northern Minnesota diocese becomes the 15th diocese in the nation to file for bankruptcy protection following clergy abuse litigation, including the Archdiocese of St. Paul and Minneapolis, which declared bankruptcy last January.
Given the “magnitude” of the jury’s award, “the diocese was left with no choice but to file for reorganization,” wrote the Rev. James Bissonette, diocese vicar general, in a public statement.
“There is sadness in having to proceed in this fashion,” wrote Bissonette. “The decision to file today safeguards the limited assets of the Diocese and will ensure that the resources of the diocese can be shared justly with all victims, while allowing the day-to-day operation of the work of the church to continue.”
The diocese lists its number of creditors as fewer than 50, and its estimated assets — and liabilities — as $1 million to $10 million.
Note: This is an Abuse Tracker excerpt. Click the title to view the full text of the original article. If the original article is no longer available, see our News Archive.