Attorneys fees mount in Duluth archdiocese bankruptcy

MINNESOTA
Minnesota Public Radio

Martin Moylan Duluth Aug 4, 2016

A federal judge has approved payment of about a half million dollars in fees and expenses for law firms working on the bankruptcy of the Diocese of Duluth.

Most of the money goes to law firms representing the diocese. Attorneys for the creditors committee, which represents sex abuse victims and other claimants, received about $60,000. The diocese is on the hook for those legal costs.

The church filed for bankruptcy in December. saying that’s the only way it can compensate clergy sex abuse victims and continue the church’s mission.

The move came 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. Despite some insurance coverage and some savings, the diocese said it didn’t have enough assets to cover it’s $5 million share of that judgment and possible compensation for other abuse victims.

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