Milwaukee church bankruptcy headed to mediation

M.L. JOHNSON, Associated Press

A reorganization plan proposed by the archdiocese earlier this year would give 128 victims roughly half of an $8 million insurance settlement. Others who have filed claims would receive nothing. Meanwhile, attorneys' fees are now estimated at $13.7 million, and victims have been outraged by the idea that attorneys would receive more money than them.

Bankruptcy Judge Susan Kelley said during a morning hearing that she would likely issue a written order later in the day for mediation to take place in early September.

"The point of this is to try to negotiate a resolution quickly and stop the legal fees," she said.

A mediation attempt in 2012 failed, in part because the archdiocese maintained there were too many issues to hash out. A sticking point this time could be whether the archdiocese's former insurers participate.

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