Milwaukee archdiocese, abuse victims, return to mediation in bid to end bankruptcy

September 08, 2014

The Archdiocese of Milwaukee is renewing an attempt to reach a mediated settlement with sex-abuse victims, in a bid to resolve an expensive bankruptcy process.

The archdiocese has proposed a bankruptcy settlement that would allow $4 million in payments to 130 sex-abuse victims. The victims, however, contend that the archdiocese has considerably more resources available, pointing to a $55 million trust fund for archdiocesan cemeteries.

The Milwaukee archdiocese argues that the cemetery trust fund cannot be included as an asset of the archdiocese. That stand is currently being tested in federal court. By accepting a mediated settlement in the bankruptcy case, both sides-- the archdiocese and the victims-- might avoid the risk of an adverse decision in that federal case.

The archdiocese and abuse victims were unable to reach an agreement in a previous mediation process in 2012. The length of the bankruptcy proceedings, and the associated legal costs, have increased pressure for an agreement.

 

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Further information:

• Milwaukee Archdiocese, abuse victims return to mediation (Journal-Sentinel)
• Talks end without accord between Milwaukee archdiocese, creditors in bankruptcy case (CWN, 10/26/12)