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	Diocese Decision to File for Bankruptcy Fraught with Risks By Michael Louis Vinson Green Bay Press-Gazette January 6, 2011 http://www.greenbaypressgazette.com/article/20110106/GPG0101/110106148/Diocese-decision-to-file-for-bankruptcy-fraught-with-risks APPLETON — The Roman Catholic Diocese of Green Bay, facing civil lawsuits tied to sex abuse by a former priest, could follow the Archdiocese of Milwaukee's lead and file for bankruptcy protection to inoculate itself from bank-breaking damages. But the strategy is fraught with risks and could backfire, possibly inflicting a catastrophic toll on Catholic parishes, schools and hospitals throughout the Fox Valley. This week the Archdiocese of Milwaukee joined at least seven other U.S. Catholic dioceses in seeking Chapter 11 bankruptcy protection amid fraud lawsuits fueled by sex abuse cover-ups. At that time, Green Bay Bishop David Ricken said in a written statement that he was "deeply saddened" by the archdiocese's announcement. The diocese would not comment further on this issue this week. The goal is to keep the archdiocese running and also compensate current and future sex abuse claimants. But if the archdiocese and claimants aren't able to agree on a bankruptcy settlement, a subsequent bankruptcy trial could pull in other Catholic organizations. "If you push this and litigate, there's obviously some risk that the court could rule against some of the parishes or some of the other related entities and drag more assets into the bankruptcy estate in a way that would have long-term consequences," said Stephen Lubben, a professor at Seton Hall Law School in New Jersey and bankruptcy expert. "It's usually best to try to work out some sort of reasonable settlement." Bankruptcy trials can be particularly unfavorable to dioceses because it's often unclear what property the diocese owns and which assets it has spun off. For example, if a diocese isn't sufficiently independent from a local Catholic Charities organization, the two could be lumped together in a court judgment. "This has been a big issue in some of the prior diocese bankruptcies," Lubben said. "That would obviously have devastating consequences for the charity's ability to fulfill its mission, because its assets would suddenly be available to pay towards (claimants)." Much like the Archdiocese of Milwaukee, the Diocese of Green Bay is fighting at least two civil fraud lawsuits related to sex abuse by a former priest. Todd and Troy Merryfield — brothers from St. Paul, Minn. — filed a suit in 2008 alleging the diocese knew priest John Feeney had molested children before placing him in several parishes where he had contact with children. A similar suit involving Feeney has been filed in Nevada against the Green Bay diocese as well. Aside from the financial considerations, some have suggested that the Milwaukee archdiocese filed for Chapter 11 bankruptcy to block the release of damaging information about former Archbishop Rembert Weakland's involvement in sex abuse cover-ups and that the Green Bay diocese could do the same. "The cases that they claim are bringing them to bankruptcy court — there hasn't even been a trial scheduled yet," said Peter Isely, Midwest director for the Survivors Network of those Abused by Priests. "There's no debt announced. This is about bishops and the senior management at the diocese." But Lubben says that theory doesn't hold water. "It seems to me that the bankruptcy court would be the last place you would want to be because bankruptcy imposes transparency on your operations," he said. "Everything takes place under the eye of the bankruptcy court. If you had something to hide, I don't think you would go to bankruptcy court." In a special report published in May 2002, The Post-Crescent detailed how Feeney was moved from parish to parish 14 times in 14 years, commonly after allegations of sexual misconduct, during his stint in the Green Bay diocese. In all, Feeney served at 18 parishes in the diocese between his June 1952 ordination and his move to California in 1983. Feeney, 83, was convicted in 2003 on four counts of sexually assaulting the Merryfields, who were 12 and 14 at the time of the abuse. He was sentenced to 15 years in prison and is being held in the Dodge County Jail.
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