Deal Could Be near between Archdiocese, Sex Abuse Victims
By Annysa Johnson
The Archdiocese of Milwaukee and victims of sex abuse by priests and others in authority have extended their court-ordered mediation into next week, prompting speculation that one of the Catholic Church's largest bankruptcies could be nearing a close. Lawyers for both sides met for another session Monday with the mediator, retired U.S. Bankruptcy Judge Randall J. Newsome of San Francisco, in hopes of hammering out a settlement that would compensate victims and allow the archdiocese to continue its mission. Archdiocese spokesman Jerry Topczewski said "much progress" has been made. But neither he nor attorneys representing victims would comment on the substance of the talks, or whether they believed a settlement was imminent. "Based on the status of the talks, we thought it was appropriate to continue. But I wouldn't talk about the status beyond that," said James Stang, the lead attorney for the creditors committee. Ralph Anzivino, who teaches bankruptcy at Marquette University Law School, said the extension is not unusual, noting that the vast majority of bankruptcies are resolved through negotiations rather than judicial rulings. "It's certainly not a negative sign, that's for sure," Anzivino said. "If Judge Newsome said there was no way this would work, you wouldn't see this extension. So, he still sees a glimmer at least, and maybe more, we don't know." The extension of the 60-day mediation period ordered by U.S. Bankruptcy Judge Susan V. Kelley, which began July 20, will halt adversarial proceedings in the bankruptcy through Oct. 2. That is just days before a damning documentary about the church's handling of one of the most notorious cases in southeastern Wisconsin - the late Father Lawrence Murphy's molestation of as many as 200 deaf boys - makes its U.S. debut at the Milwaukee Film Festival on Oct. 5. The film's impending release has had no effect on the talks, both sides said Monday. The archdiocese filed for Chapter 11 bankruptcy protection in January 2011 as it prepared to fight more than a dozen civil fraud lawsuits over its handling of sex abuse cases, saying it was the only way to fairly compensate victims and continue its work. It is the largest of the Catholic Church bankruptcies to date in terms of the number of sex abuse claimants, nearly 500, who say they were sexually abused by a priest, deacon, sister, teacher or other individual working for the church. It has also become among the most contentious, with victims accusing the archdiocese of shielding assets; and the archdiocese seeking to throw out what could be the vast majority of claims. The bankruptcy has cost the archdiocese $7.2 million to date, most of that to pay lawyers and consultants used by the archdiocese and the creditors committee. Under bankruptcy law the debtor pays all costs. Kelley ordered a 60-day mediation in July in an effort to end what she and the assistant U.S. trustee assigned to the case have called an "all out war" and "scorched-earth" legal battle. As mediator, Newsome has been charged with guiding the parties through a host of issues, including which of the claims should be compensated, which church assets should be made available to pay them and what nonmonetary provisions - such as apologies or the release of church documents - should be part of any settlement. Peter Isely of the advocacy group Survivors Network of Those Abused by Priests, who is among the bankruptcy claimants, said the duration and contentiousness of the legal battle have taken a toll on survivors. Many, he said, have felt victimized again, by the archdiocese's effort to throw out claims, and are not overly optimistic about a settlement. "We've prepared ourselves to keep our expectations in check and do the best to get on with our lives," he said.
|
.
Any original material on these pages is copyright © BishopAccountability.org 2004. Reproduce freely with attribution.