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  Faced with Sexual Abuse Cases, Catholic Diocese of Wilmington, De Files for Bankruptcy

By Kris Alingod
AHN
October 19, 2009

http://www.allheadlinenews.com/articles/7016731197

Wilmington, DE (AHN) - The Catholic Diocese of Wilmington has filed for Chapter 11 bankruptcy so it can fully respond to victims of sexual abuse by members of its clergy. Its announcement on Sunday came on the eve of the first trial under a new law that repealed the statute of limitations, which required lawsuits be filed within two years of an alleged abuse against a child.

In a statement, the Most Rev. W. Francis Malooly, bishop of the diocese, said he was forced to make the "painful decision" because bankruptcy filing "offers the best opportunity, given finite resources, to provide the fairest possible treatment of all victims of sexual abuse by priests of our Diocese."

"The Chapter 11 filing is in no way intended to dodge responsibility for past criminal misconduct by clergy - or for mistakes made by Diocesan authorities," Malooly added. "Nor does the bankruptcy process enable the Diocese to avoid or minimize its responsibility to victims of abuse. Instead, the Chapter 11 filing will enable the Diocese to meet its obligations head-on and fulfill its responsibility to all victims."

The Delaware legislature passed a measure in July 2007, the Child Victim's Act, that allowed people who were sexually abused as children to file lawsuits within a two-year window, giving them a chance they did not have under the statue of limitations.

The window for civil suits ended in July, with 131 victims suing the Diocese of Wilmington. Eight of the cases against the diocese were set to begin on Monday.

"Our concern throughout the negotiations," Malooly explained, "was that too large a settlement with these eight victims would leave us with inadequate resources to fairly compensate the other 133 claimants, and continue our ministry. It is our obligation to ensure that all victims of abuse by our priests are fairly compensated, not just those fortunate enough to secure earlier trial dates."

Before the law was enacted, the Diocese had received 79 allegations of sexual abuse of children since the 1950s. A number of these accusations were substantiated and clergy involved were removed from the priesthood.

A total of $1.64 million was spent by the diocese in settlements during the same period.

The Diocese of Wilmington was established in 1868 and serves more than 230,000 Catholics in Delaware and nine counties of Maryland.

 
 

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