Catholic World News News Feature

Bankruptcy court approves settlement by Davenport diocese May 02, 2008

A US federal bankruptcy court in Iowa has approved the terms of a settlement in which the Diocese of Davenport will provide $37 million in damage payments to the victims of clerical abuse.

In October 2006, the Davenport diocese became the 6th Catholic diocese in the US to file for bankruptcy protection, citing the demands of plaintiffs in sex-abuse lawsuits. The court's decision allows the diocese to reorganize its finances and begin paying the victims, with fund coming from an insurance carrier and from the sale of Church properties.