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Monday, 3 February 2014

Catholic diocese to file for bankruptcy protection

USA Today

The Roman Catholic Diocese of Helena [Montana] planned to file for bankruptcy protection [on January 31] as part of a proposed settlement of $15 million for hundreds of victims who say clergy members sexually abused them over decades while the church covered it up.

The U.S. Bankruptcy Court in Montana would be responsible for approving and supervising the disbursement of $15 million to compensate the 362 victims identified in the two lawsuits. In addition, at least $2.5 million will be set aside for victims who come forward later, [Diocese spokesman Dan] Bartleson said.

Molly Howard, an attorney for the plaintiffs, said she believes the bankruptcy process will resolve the case more quickly than years of litigation and trials with uncertain outcomes. The Helena diocese is the 11th in the nation to seek bankruptcy protection in the face of sex-abuse claims.

In one of the lawsuits, the plaintiffs said they were repeatedly raped, fondled or forced to perform sexual acts while at school, on the playground, on camping trips or at the victims' homes. The second lawsuit, filed a week after the first in 2011 ... alleged that nuns at the Ursuline Academy in St. Ignatius abused dozens of Native American children.

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