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light dawns

By Diogenes (articles ) | Feb 19, 2010

Let's say you ran a small business. You were doing OK until a crooked employee robbed you and cheated your customers, bringing on an avalanche of lawsuits that drove you into bankruptcy. Now, with more debts than money to pay, you have to make some tough decisions. Should you pay the honest vendors who gave you fair value? Or should you pay the back wages still due to that crooked employee who was responsible for your predicament?

Gee. Tough questions. But you're not alone in your predicament:

Wilmington, DE (AP) - The Catholic Diocese of Wilmington has withdrawn a motion in bankruptcy court for permission to pay retirement benefits to six pedophile priests.

The diocese said in a court filing Thursday that it has reached an agreement with unsecured creditors and abuse survivors who opposed the motion, ending the need for a hearing next week.

Good thinking, guys. Got that one right. 

 

 

 

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  • Posted by: Frodo1945 - Feb. 28, 2010 9:07 AM ET USA

    Don't give them too much credit. Here is the rest of the story. "Survivors of clergy sexual abuse, who serve on the unsecured creditors committee, had strongly objected to the diocese's application filed in bankruptcy court in November, saying the abuser priests were not legally or morally entitled to benefits. What's more, there had been no efforts on the part of the diocese to reach out to the victims, the committee said."

  • Posted by: TheJournalist64 - Feb. 19, 2010 7:36 PM ET USA

    Of course, the diocese might have been in ERISA hot water if the plan was governed by that 1972 law. It is illegal to alienate ERISA retirement benefits from anyone, and such assets and IRA's cannot be seized in bankruptcy. Fortunately, few dioceses bothered with that nicety.

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