Diocese heading towards bankruptcy; Turlock priest costs church millions

CALIFORNIA
Turlock Journal

By Sabra Stafford
Crime Desk sstafford@turlockjournal.com 209-634-9141, ext. 2002
POSTED September 6, 2013

A series of costly payments to settle multiple claims of sexual abuse has the Diocese of Stockton moving closer to a decision to file for bankruptcy, church officials stated Friday.

The Diocese of Stockton oversees Catholic entities between Lodi and Turlock, including All Saints University Parish, Sacred Heart Church, and Our Lady of the Assumption of the Portuguese Church, all in Turlock, and St. Anthony’s Church in Hughson. It also includes Sacred Heart’s Turlock schools.

“The funds we have used to settle sexual abuse lawsuits have been almost depleted, and we have no apparent way to meet the expenses of pending lawsuits and possible future claims,” said Bishop Stephen E. Blaire in a released statement.

“We continue to investigate our options, and no final decisions have been reached. I feel, however, that it is important to tell you that options other than filing for bankruptcy protection have not emerged,” Blaire continued. “It appears likely to me that the Diocese will need to re-organize financially under the protection of the Bankruptcy Court.”

Blaire said all the local Catholic entities organized as separate corporations would not be subjected to the bankruptcy filing.

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