MINNESOTA
Duluth News Tribune
By Tom Olsen
A year into bankruptcy, legal bills are continuing to mount for the Diocese of Duluth.
U.S. Bankruptcy Judge Robert Kressel on Thursday approved the spending of another $750,000 in attorneys’ fees and expenses — swelling the total cost of the process to $1.28 million and counting.
The biggest chunk of the money has gone to four law firms representing the diocese, but more than $183,000 also has been paid out to attorneys for a creditors’ committee, which represents people who have filed child sexual abuse claims against the diocese.
While in bankruptcy protection, the diocese’s expenses must be submitted to and approved by a judge. The order issued Thursday covers attorney compensation through October.
The diocese filed for Chapter 11 bankruptcy protection on Dec. 7, 2015, in wake of a $4.9 million verdict in the first case to go to trial under the Minnesota Child Victims Act, which temporarily lifted the statute of limitations for victims of decades-old abuse cases to file suit.
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