STOCKTON (CA)
Modesto Bee
BY SUE NOWICKI
snowicki@modbee.com
January 13, 2014
The Stockton Diocese announced Monday afternoon it will file Wednesday for reorganization under Chapter 11. The move affects only the diocesan budget and buildings and will not have an impact on the individually incorporated parishes or ministries, Bishop Stephen Blaire said.
“This has been a difficult decision,” he said in a press release. “Nevertheless, I am convinced this step will allow us to achieve two essential goals. First, it will provide a process to compensate as fairly as possible the victims of sexual abuse, including those who have not yet come forward or had their day in court. At the same time, the process will provide a way for us to continue the ministry and support we provide to the parishes, the poor and the communities located within our diocese.”
The Stockton Diocese becomes the 10th in the country and the second in the state to move under the protection of the bankruptcy court. The action was taken to reduce the amount of money the diocese must pay in civil cases involving priests and sexual abuse victims. It also will put a time limit on filing any new lawsuits concerning past sexual abuse.
In June 2013, Blaire said the diocesan reserve account, which has been used to pay such lawsuits, totaled about $10 million when he took over as bishop in 1999, but has been depleted to less than $1 million.
To date, the diocese has been hit with nearly $32 million in damages for civil lawsuits in 38 clergy sexual abuse cases. The diocese has paid $13.7 million of those awards; the rest came from insurance proceeds. The largest settlement, $3.75 million, was awarded in 2012 in a case involving the Rev. Michael Kelly.
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