Legal and professional fees paid by the Catholic Diocese of Buffalo have ballooned to $12.5 million, prompting the federal judge overseeing the diocese’s Chapter 11 bankruptcy case to remark that he was puzzled over how the diocese was able to afford such costs.
“The question is, ‘Where is the money coming from for these legal fees?’” Chief Judge Carl L. Bucki of the U.S. Bankruptcy Court in the Western District of New York asked the diocese’s lawyers at a recent hearing. “I’m just having trouble discerning how an entity can be profitable after paying over $12 million in legal fees, an entity of this size.”
Bucki based his comments on the diocese’s most recent monthly operating report, for the period ending April 30, which showed a $1.7 million cumulative profit over the course of the 39 months of bankruptcy proceedings. The report also showed a monthly loss of $91,735 in…
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