Church Bankruptcy Mediation Extended

Milwaukee Journal Sentinel
October 4, 2012

http://www.jsonline.com/news/wisconsin/regbrfs04-ga73e35-172601031.html

The Archdiocese of Milwaukee and victims of sexual abuse by clergy and others will continue to try to settle after Judge Susan V. Kelley extended the mediation deadline a second time, to Oct. 12.

At issue is how many of the estimated 570 victims should be compensated and to what extent. At least one attorney has said previously that he would not agree to a settlement that did not also include the release of church documents.

The archdiocese filed for Chapter 11 bankruptcy protection in January 2011, as it prepared to defend itself in a dozen fraud lawsuits, saying it was the only way it could fairly compensate victims and continue its essential missions. But it has sought to limit its liability by objecting to claims that are beyond the statutes of limitations for the underlying allegations; involve victims who received a prior church settlement; or accuse a teacher, religious order priest or other individual the archdiocese doesn't consider its employee.

The mediation, with retired U.S. Bankruptcy Judge Randall J. Newsome, is confidential.