Milwaukee Catholic Archdiocese files bankruptcy settlement

MILWAUKEE (AP) – The Roman Catholic Archdiocese of Milwaukee on Monday filed its bankruptcy reorganization plan, formalizing a recent settlement deal that will divvy up $21 million among more than 300 victims of clergy sex abuse.

The archdiocese filed for Chapter 11 bankruptcy protection in 2011 to address its sex abuse lawsuit liabilities. The bankruptcy plan is scheduled for review in November, and church officials are “hopeful this is approved by the judge,” archdiocese spokesman Jerry Topczewski said.

“We’re confident she will appreciate the work that’s been done getting to this point,” he added.

The creditors’ committee, which comprises five abuse victims, is expected to endorse the deal, committee chairman Charles Linneman said.

Victims’ advocates have criticized several aspects of the agreement, and Peter Isely, Midwest director of Survivors Network of those Abused by Priests, said he and others will work to address key issues, including getting more claims included in the settlement, before bankruptcy Judge Susan Kelley reviews the case.

“There’s a window of time between now and November where we can make some things happen,” he said.

Despite his misgivings, Isely acknowledges that many abuse survivors are ready to move on and will accept the deal to put the case behind them.

The settlement had been a sticking point that stalled a previous reorganization plan filed last year, but this agreement should conclude a yearslong process that has revealed the scope of the Milwaukee organization’s involvement in a widespread clergy sex abuse scandal that has rocked the church.

In response to the crisis, which reached a boiling point in 2002, the church made sweeping reforms meant to stop molesters and help victims, including a pledge to investigate claims and oust abusers. Bishops also enacted safeguards for children, requiring background checks and special training.

A dozen Catholic dioceses nationwide have filed for bankruptcy in the past decade over abuse claims. Milwaukee’s settlement, announced in early August, includes some of the smallest per-victim payments, another heavily criticized aspect of the deal.

“We weren’t happy with the settlement amount,” Linneman said, “but it was the most we were going to get.”

Under terms of the deal, 330 abuse survivors will share $21 million, and a $500,000 therapy fund will be established for ongoing counseling. All of the archdiocese’s parishes, schools and institutions, meanwhile, would be protected from lawsuits related to past abuse claims.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

WKBN 27 First News provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. No links will be permitted. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s