By Annysa Johnson
Milwaukee Journal Sentinel
April 13, 2011
http://www.jsonline.com/features/religion/119803154.html
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| The Catholic Archdiocese of Milwaukee, which faces more than a dozen civil fraud lawsuits over its handling of clergy sex abuse cases, filed for Chapter 11 bankruptcy protection in January. As the case proceeds, we'll have updates, analysis, documents and more. |
The Archdiocese of Milwaukee will challenge a request by its bankruptcy creditors for a court-appointed forensic accountant to analyze its finances, Archbishop Jerome Listecki said in his weekly pastoral message Wednesday, calling such a review an unnecessary and costly expense.
"I?.?.?.?want to assure you that the Archdiocese of Milwaukee has been forthright in sharing complete financial information with the attorneys for victims/survivors - prior to the Chapter 11 proceeding (in the mediation process) and currently in the Chapter 11 proceeding through the required court reporting," Listecki said in the email message that is sent to more than 6,000 subscribers each week.
Victims' attorney Jeffrey Anderson said the review is a standard procedure in many bankruptcy cases, and the archdiocese's resistance suggests it has something to hide.
"The archdiocese has spent enormous amounts of money to file and prepare for bankruptcy, and now it objects to someone looking at its finances and we should take them at their word? They have no credibility in my mind," he said.
Anderson's firm on Monday filed a motion asking Judge Susan V. Kelley to allow it to hire California-based Berkeley Research Group, which analyzed church assets in bankruptcies involving the dioceses of San Diego and Wilmington, Del., and the Society of Jesus, or Jesuits, in Oregon.
At issue, the motion said, is the Milwaukee Archdiocese's transfer of more than $125?million in the weeks and years leading up to the bankruptcy - some of it into newly created trusts - and whether that money should be allowed to be tapped to pay claims by sex abuse victims.
The archdiocese maintains that all trusts were legally established, and any money moved was restricted for specific purposes and would have been unavailable for settlement payments regardless.
In his pastoral letter, Listecki takes issue with the cost of the review. He cites $650 an hour, though according to court records, rates range from $88 to $650, depending on the level of employee. He notes that, in bankruptcy, all costs are borne by the debtor.
Anderson said the archdiocese is paying comparable rates on legal fees. According to court records, about 28 attorneys are expected to represent the archdiocese at rates ranging from $190 to $600 an hour. The creditors committee is represented by seven lawyers at two firms, with rates ranging from $200 to $650 an hour. Anderson's and two other firms representing victims in their civil claims against the archdiocese are paid on contingency out of any settlements.
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