MINNESOTA
Duluth News Tribune
By Riham Feshir, MPR.org / 100.5 FM on Dec 11, 2015
The Diocese of Duluth may negotiate its bankruptcy case outside of the courtroom.
U.S. Bankruptcy Judge Robert Kressel has encouraged the Diocese of Duluth and all parties involved, including attorneys for sex abuse victims and insurers, to work with a mediator to come to a resolution.
The Diocese of Duluth filed for bankruptcy protection earlier this week. The decision comes a month after a jury ordered the diocese and a Catholic religious order to pay more than $8 million in damages to a man who was sexually abused by a priest in 1978. The diocese said it can’t afford its $5 million share of the settlement and filed for bankruptcy.
Mike Finnegan, a St. Paul attorney for abuse victims who’ve filed lawsuits against the diocese, said mediation is a less-costly way to work through litigation when there are numerous parties involved. He did not argue against using a mediator.
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