Minnesota Abuse Victims Seek to Restrict Access to Claims

By Tom Corrigan
Wall Street Journal
September 1, 2015

http://blogs.wsj.com/bankruptcy/2015/09/01/minnesota-abuse-victims-seek-to-restrict-access-to-claims/

Lawyers representing more than 400 clergy sexual-abuse victims will head to court this week to fight a request from the Roman Catholic Archdiocese of St. Paul and Minneapolis’s parishes for permission to review victims’ confidential bankruptcy claims.

Victims’ lawyers said that if the parishes’ request is approved by a judge, it could result in the dissemination of “unusually detailed and intensely personal” information to more than 1,000 additional recipients.

“Many of the additional permitted parties will reside in smaller parishes outside of the metropolitan area where confidential information is more likely to be linked to specific claimants,” Robert Kugler, a lawyer for the committee representing abuse victims, said in court papers.

Lawyers for the parishes, however, say the information included in the claims is crucial to efforts to broker a settlement with victims.

More than 400 alleged sexual-abuse victims have come forward with claims against the archdiocese, court papers show. Since shortly after it filed for bankruptcy, the archdiocese—which filed for chapter 11 protection in January—as well as its insurance carriers, the parishes and lawyers for victims have worked with a mediator to attempt to reach a broad settlement that will both compensate victims and provide a clear path out of bankruptcy for the archdiocese.

The details of the victims’ claims have already been shared with the archdiocese, insurance carriers, the committee representing abuse victims and the parishes’ bankruptcy lawyers.

But the parishes have moved to expand that authority to include parish pastors, parish financial councils, board members and other parish lawyers. Any person given access to claims information would be required to sign a confidentiality agreement and follow rules established by the bankruptcy court.

Mary Jo A. Jensen-Carter, a lawyer representing a group of parishes, said in court papers that the parishes’ request was appropriate and would allow them to make informed decisions about how to handle the claims.

“It is imperative that individuals governing the parish be involved in the process of analyzing the claims against the parish so that they can cooperate with their insurers and make informed decisions on behalf of the parish,” she said.

In court papers, Mr. Kugler took aim at the “breadth and ambiguity” of the parishes’ request, saying the dissemination of such sensitive information could undermine victims’ expectations of privacy.

“Fear of public exposure is a significant barrier to the assertion or filing of sexual abuse claims,” he said. “To allow the relief sought by the parish committee could well undermine the trust that sexual abuse claimants placed in this process by coming forward and filing claims.”

Mr. Kugler, who says he was unable to work out an agreement with the parishes before filing his objection, is seeking to restrict access to abuse-related claims to implicated parishes and their board members. He also suggested that parishes not be allowed to make copies, print or save claim information.

Judge Robert Kressel of the U.S. Bankruptcy Court in Minneapolis will take up the issue at a hearing Thursday.