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Judge orders mediation in bankruptcy case of Minnesota archdiocese

January 26, 2015

A judge in federal bankruptcy court has ordered the Archdiocese of St. Paul- Minneapolis to go to mediation with creditors— led by sex-abuse victims—in hopes of avoiding a costlier legal process.

Judge Robert Kressel observed that in the bankruptcy cases of Catholic dioceses, the outcome has usually been a settlement. “But the question becomes: Is that three or four years from now, with $17 million in fees, or is it six months from now, with a fraction of that?” he said. “I assume that’s a goal we all share.”

 
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