Eastern Montana Catholic diocese’s effort to drop bankruptcy after settlement fails is a first

BILLINGS (MT)
Billings Gazette

March 14, 2018

By Phoebe Tollefson

For the first time ever, a U.S. Catholic diocese is trying to back out of bankruptcy court due to its failure to reach a settlement with victims of clergy sex abuse.

In a motion filed Tuesday, the Great Falls-Billings Diocese said negotiations with the abuse victims had broken down and that continuing through bankruptcy court would only add to litigation costs and diminish the funds that will eventually be used to compensate victims.

The diocese filed for bankruptcy a year ago as part of its plan to settle complaints by 72 people claiming sex abuse by Eastern Montana clergy. Later more victims came forward and there are now 86.

The diocese is required to pay for all litigation costs, including the work of the victims’ attorneys, under bankruptcy court rules. That tab is likely to run into millions of dollars, the diocese said in a press release issued Wednesday by Chancellor Darren Eultgen.

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