MINNESOTA
Duluth News Tribune
By Tom Olsen on Feb 14, 2016
The Diocese of Duluth and attorneys representing dozens of child sexual abuse victims have agreed to enter mediation talks ahead of a May deadline for filing claims, according to documents filed last week in U.S. Bankruptcy Court.
Gregg Zive, a federal bankruptcy judge in Arizona with experience in diocesan bankruptcy cases, is expected to assist in negotiations between the parties.
His appointment, which was requested by the diocese, is subject to approval by Judge Robert Kressel, who previously encouraged mediation. Attorneys have said they expect to reach an amicable agreement — as has been the case in all 14 previous diocese and religious order bankruptcies in the United States.
The diocese filed for Chapter 11 bankruptcy in December after being hit with a $4.9 million verdict in the first case to go to trial under the Minnesota Child Victims Act, which opened the way for victims of sexual abuse to file lawsuits that would otherwise be barred by statutes of limitation.
With an annual budget of about $3.3 million — and facing dozens of additional claims — diocese officials stated that bankruptcy was the only way they could fairly compensate all victims while maintaining essential church operations.
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.