Suits Spur Diocese to File for Bankruptcy

By Michael Clancy
The Republic
September 3, 2013

http://www.azcentral.com/news/arizona/articles/20130903suits-spur-diocese-file-bankruptcy.html

The Catholic Diocese of Gallup, N.M., announced at weekend Masses that it would seek Chapter 11 bankruptcy protection as a result of more than a dozen clergy abuse lawsuits.

Bishop James Wall, who formerly worked as a parish priest in Phoenix, said bankruptcy protection is “the most effective and thoughtful course to take in light of claims from those who were abused.”

The Gallup Diocese encompasses Arizona’s Apache and Mohave counties, and seven of 13 plaintiffs in the lawsuits reside in Maricopa County.

A filing date with federal bankruptcy court in Albuquerque was not specified.

Wall, who became bishop in 2009, said he wants to treat all abuse victims “in a just, equitable and more-than-merciful manner” while continuing diocese operations.

Gallup would become the ninth diocese nationwide to file for bankruptcy. Tucson was the second, in a case resolved in 2005. Tucson ended up paying $22.2 million to more than 50 abuse victims.

Gallup is believed to be one of the poorest dioceses in the country, operating on a budget of less than $3 million a year, less than some parishes in Phoenix.

Plaintiffs’ attorney Robert Pastor said the bankruptcy filing is more about keeping information secret than minimizing the amount of abuse settlements.

A bankruptcy filing halts all legal action against the diocese. Pastor said he likely will lose the scheduled Sept. 18 opportunity to depose Wall, who he has been “trying to schedule for a year.”

“The diocese is using bankruptcy to put a stop to discovery,” Pastor said.

Wall, in his Sunday letter, denied that.

“I have not taken this step to avoid responsibility for what happened or to hide anything,” he said.