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	Bishop Explains Why Diocese Filed for Bankruptcy By Gary Soulsman News Journal October 19, 2009 http://www.delawareonline.com/article/20091019/NEWS/91019039 An attempt by the Diocese of Wilmington to reach a group settlement of 13 sexual abuse cases broke down after 8:30 p.m. Sunday, leading to a filing for bankruptcy that night. Without the filing, the diocese would have borne the costs for 12 weeks of trial, and if the awards were large, they could have depleted resources available to all the 142 claimants suing in 131 cases. That was how Bishop W. Francis Malooly and diocesan lawyers Tony Flynn and Robert Brady explained the filing at a press conference today. The overarching concern was that all victims be compensated fairly, which is why the diocese has filed for chapter 11 in U.S. Bankruptcy Court for the District of Delaware, they said. The diocese expects the court to assess its assets and help create a plan for the settlement of cases. "The advantage with this is that it has a neutral party trying to decide how to fairly take care of claimants and our creditors," Malooly said. He said he's never been involved in a bankruptcy and the decision was painful and necessary to meet the needs of victims seeking redress through the courts. He said he hoped this would be more equitable for victims and easier in the sense that they will not have to go to trial. Treating victims well "is a moral obligation on our part," he said. "Our equally significant moral obligation is to continue the charitable, education and spiritual missions of this diocese." During a 25-minute press conference, the bishop pointed out that the diocese, as a legal entity, is separate from the 58 parishes and 27 schools. He said most of the churches were owned by the parishes and that he expects disruptions to schools and churches to be minimal, though the diocese provides support services to churches and schools and these service will be affected by the filing. The first of the trials was to have started in Superior Court today with Michael Vai, 57, alleging he was abused at St. Elizabeth's Church by the now-defrocked priest Francis G. DeLuca, who served in the diocese for 35 years. Other trials had been scheduled into 2011 but with the filing, Flynn said, he expects that all claimants will be treated as a group of creditors and should know well before 2011 what they can expect in terms of a settlement. Contact Gary Soulsman at 324-2893 or gsoulsman@delawareonline.com
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