MINNESOTA
National Catholic Reporter
Brian Roewe | Mar. 3, 2017
A third Catholic diocese in Minnesota facing clergy sexual abuse lawsuits has declared bankruptcy, as New Ulm filed on March 3 for financial reorganization under Chapter 11 of the U.S. Bankruptcy Code.
In announcing the decision, the diocese cited the 101 lawsuits brought against it during the three-year window into the state’s statutes of limitations on civil cases involving sexual abuse of minors, which was opened by the 2013 Minnesota Child Victims Act. That window closed May 25, 2016.
Since the law lifted the statutes of limitations, three of six Minnesota dioceses have filed for bankruptcy: first, the St. Paul-Minneapolis archdiocese in January 2015, which was followed that December by the Duluth diocese. Both of those bankruptcies remain ongoing.
In the Twin Cities case, creditors will be mailed ballots in the next 30 days to vote on two reorganization plans — one each put forth by the archdiocese and the creditors’ committee — at which point they will have 40 days to respond. The outcome will be taken into account by the judge, who will make the final decision.
Duluth is the 14th Catholic diocese in the U.S. to file for bankruptcy related to the sexual abuse of children by clergy. In addition, two religious orders have also filed for bankruptcy protection, according to Bishop-Accountability.org.
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