Judge orders Montana Catholic diocese to update court on settlement plan

GREAT FALLS MT
Great Falls Tribune

October 2, 2017

By Seaborn Larson, slarson@greatfallstribune.com

A U.S. bankruptcy judge last week ordered a hearing intended to map out the remaining settlement proceedings between the Great Falls-Billings Diocese and the 86 victims claiming they were abused by eastern Montana priests through the 1900s.

Last month, settlement negotiations ended after a two-day session without resolution. The impasse reportedly came as the parties disagreed about whether or not certain church assets are available to the settlement fund.

In the order setting the Nov. 2 hearing, Federal Bankruptcy Judge Jim Pappas asked the diocese to provide a summary of the church’s income and expenses since it filed for bankruptcy in March. Primarily, the judge hopes to discuss “the factors leading to the filing of this Chapter 11 case; (the diocese’s) objectives in the case, and the means by which (the diocese) hopes to achieve those objectives.” The hearing also gives the diocese a chance to discuss any other topic of significance that affects the bankruptcy case.

The diocese has argued that certain assets are being held in trust for the parishes, and are therefore exempt from a settlement fund the diocese promised to create for victims when it filed for chapter 11 bankruptcy on March 31.

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