Abuse victims call Archdiocesan bankruptcy plan 'repugnant'

 

The archdiocese has argued from the beginning that it has limited resources to compensate victims. It says it has already paid more than $33 million in settlement and therapy costs over the years, including $8.25 million of a $17 million settlement in a California case brought by victims of Wisconsin priests who had been transferred there.

So far, creditors have yet to obtain a single asset of significance for the bankruptcy estate.

Kelley ruled in December 2012 that creditors could not tap the assets of the archdiocese's parishes, which are separately incorporated; or $35 million in parish deposit funds the archdiocese moved off its books in 2005 — though she said there was arguably "something fishy about the transfer."

The parties have yet to litigate issues related to Faith in Our Future, the Cousins Center or the $11 million fixed income account.

Kelley ruled in January 2013 that forcing the archdiocese to tap some portion of its cemetery funds would not violate its free exercise of religion. But U.S. District Judge Rudolph T. Randa overturned her ruling, and Randa's decision is now on appeal before the 7th Circuit. That decision, whenever it comes down, is likely to generate an appeal to the U.S. Supreme Court.

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