Federal appeals court affirms parish assets separate from archdiocese

MINNESOTA
National Catholic Reporter

May 1, 2018

by Maria Wiering, Catholic News Service

MINNEAPOLIS — A federal appeals court upheld two lower court rulings that the assets of Catholic institutions, including parishes, are separate from those of the Archdiocese of St. Paul and Minneapolis and that they cannot be consolidated with archdiocesan assets in its Chapter 11 bankruptcy.

The April 26 ruling came from the 8th U.S. Circuit Court of Appeals.

Thomas Abood, chairman of the archdiocese’s Reorganization Task Force, welcomed the ruling April 30.

“We are pleased that the 8th Circuit Court of Appeals has rejected a meritless legal argument by claimants’ counsel that has been directly responsible for delaying the resolution of the archdiocesan bankruptcy and has given rise to the erroneous claim — now rejected for the third time in this litigation — that the archdiocese has undisclosed assets which it has not made available to its creditors in its bankruptcy,” Abood said in a statement.

“I hope all abuse survivors, reassured by the court’s decision, will soon be able to choose the path of settlement and closure on this aspect of their quest for justice and healing,” he said.

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