NEW MEXICO
Albuquerque Journal
By Olivier Uyttebrouck / Journal Staff Writer
Published: Thursday, December 24th, 2015
ALBUQUERQUE, N.M. — An attorney for alleged victims of sexual abuse by priests has declined to sign a letter listing financial terms of a settlement in the Diocese of Gallup bankruptcy case because the agreement is “nonbinding” and could allow insurers to walk away from the deal, Los Angeles attorney James Stang told a judge on Wednesday.
“We want to know that the letter means something,” and that insurers and others are required to provide the amounts indicated in the letter, said Stang, who represents 57 alleged victims of clerical abuse who have filed claims in the case. “We have got a long road to go here.”
U.S. Bankruptcy Judge David T. Thuma said he was not surprised that attorneys are having difficulty finalizing a settlement in the 2-year-old bankruptcy case and asked them to continue working toward resolution. He set a hearing for Jan. 6 to review any progress toward a deal.
The Diocese of Gallup in November 2013 became the ninth U.S. diocese to file for bankruptcy in response to a growing number of lawsuits alleging sexual abuse of children by clergy in the diocese.
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