NEW MEXICO
Albuquerque Journal
By Olivier Uyttebrouck / Journal Staff Writer
Published: Wednesday, February 3rd, 2016
ALBUQUERQUE, N.M. — Progress in settling the 26-month-old Diocese of Gallup bankruptcy case has stumbled because an insurer is unwilling to provide detailed financial information demanded by a representative for future sex abuse claims against the diocese, attorneys told a judge on Tuesday.
An attorney for Catholic Mutual Relief Society of America, a church-owned nonprofit that insures the diocese, said the dispute may lead Catholic Mutual to withdraw its offer to pay future claims against the diocese. Attorneys described the future claims fund as a crucial part of the settlement.
“We are very close to saying that someone else should fund their future claims fund,” said David Spector, Catholic Mutual’s attorney. “We would hate to see this deal crater.”
The Diocese of Gallup in 2013 became the ninth Roman Catholic diocese in the U.S. to file for Chapter 11 reorganization bankruptcy in response to lawsuits alleging sexual abuse of children by clergy. Mediation talks in December led to a tentative agreement on funding a settlement, but unresolved details include setting up a trust fund to pay for future claims.
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