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California diocese considering bankruptcy

Catholic World News - June 06, 2013

The Diocese of Stockton, California, is reportedly weighing the possibility of filing for bankruptcy protection, after agreeing to pay $1.75 million to settle a lawsuit involving a notorious abusive priest.

A spokeswoman for the Church said that the latest lawsuit settlement-- involving the laicized Irish cleric, Oliver O'Grady-- had exhausted the funds available to the diocese.

If Church officials choose to seek bankruptcy protection, Stockton would be the 9th American diocese to take that route, following the Archdioceses of Portland, Oregon; and Milwaukee, Wisconsin; and the Dioceses of Tucson, Arizona; Spokane, Washington; Davenport, Iowa; San Diego, California; Fairbanks, Alaska; and Wilmington, Delaware.

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