US Diocese Mulls Bankruptcy

The Tablet UK
June 17, 2013

http://www.thetablet.co.uk/latest-news/5411

The Diocese of Stockton, California is considering bankruptcy in the wake of costly settlements stemming from clergy sex abuse cases, and associated legal costs.

"We have paid out over US$15 million in settlements, judgments, and legal affairs," said Bishop Stephen Blaire. "So we have depleted, virtually depleted, our reserves."

He added that the diocese has less than a million dollars left in reserves following legal settlements against priests including Fr Oliver O'Grady, who admitted to sexually abusing 25 children.

Attorney John Manly, who has represented victims, questioned the bishop's claim that the diocese had virtually run out of money.

He said filing for bankruptcy would enable a diocese to escape liability and hide funds.