Action Alert!
Catholic World News

Minnesota judge to weigh competing plans in archdiocesan bankruptcy case

August 30, 2017

A federal bankruptcy-court judge in Minnesota is weighing two plans for reorganizing the finances of the Archdiocese of St. Paul-Minneapolis: one plan submitted by the archdiocese and another by a committee of creditors.

The creditors’ group, composed mostly of sex-abuse victims, had voted overwhelmingly to reject the archdiocesan plan. But at a hearing on the two plans, Judge Robert Kressel questioned whether the creditors had “unrealistic expectations” of a larger payout from their own plan.

The archdiocesan plan would provide $150 million in payment to victims. Jeffrey Anderson, the lawyer for the plaintiff, argues that the archdiocese could furnish much more by dipping into parish funds and other sources. Representatives of the archdiocese counter that the creditors’ plan would cripple the work of the Church in the Minnesota archdiocese.

Judge Kressel did not say when he would make a ruling on the plans. The highly contentious bankruptcy case has already been in court for more than two years, with legal fees alone mounting to over $20 million.

 
Further information:
Sound Off! CatholicCulture.org supporters weigh in.

All comments are moderated. To lighten our editing burden, only current donors are allowed to Sound Off. If you are a donor, log in to see the comment form; otherwise please support our work, and Sound Off!

Show 2 Comments? (Hidden)Hide Comments
  • Posted by: [email protected] - Aug. 31, 2017 10:51 PM ET USA

    This is a case of greed and revenge. Why should every parish pay for the past sins and wrongdoing who had nothing to do with the abuse. These are greedy lawyers who keep saying we can get you more which means they get more. This affects lots of parishes and innocent people. Enough is enough unless the victims want to punish everyone. In that case, it is revenge they want and not justice.

  • Posted by: WNS3234 - Aug. 31, 2017 10:23 AM ET USA

    Whether the move to plunge into parish funds is malicious -- an attempt to cripple the mission of the local Church -- or not, that move will hobble and perhaps destroy, what services parishes can offer within the archdiocese. It also punishes "the present generation" for the grave sins and offences of past administrations. (Why should I be charged for the windows my grandfather broke?). Nothing is simple here; there is no $$$ settlement able to recompense for sexual abuse.