MILWAUKEE (WI)
Milwaukee Journal Sentinel
By Annysa Johnson of the Journal Sentinel Oct. 3, 2014
Whether Catholic parishes that harbored sex abuser priests should be given blanket immunity from future lawsuits is among the issues that will be hammered out in the coming months as the Archdiocese of Milwaukee attempts to emerge from its nearly 4-year-old bankruptcy.
U.S. Bankruptcy Judge Susan V. Kelley on Friday voiced disappointment that the parties could not reach a settlement during two rounds of talks last month. And she issued a road map that will dictate how the case proceeds, saying she wants it “on a fast track.”
“If this case is not going to be settled amicably…it’s time to litigate the remaining issues,” Kelley told attorneys at a status hearing on Friday. “I want this case over.”
The hearing came as the archdiocese filed a new round of objections to claims filed by individuals who allege they were abused by non-diocesan priests, parish staff and others for whom the archdiocese maintains it is not liable.
Kelley on Friday issued a schedule for taking up a number of disputed issues. Among them:
■ Whether the archdiocese’s proposed reorganization plan — which sets aside less than $4 million for 128 victims of diocesan priests — is fair and equitable.
■ Whether a key provision of that plan — a $8 million payment from London Market Insurers in return for a release from any future parish lawsuits — is reasonable.
■ And whether certain other assets, including the Cousins Center headquarters building and thousands of dollars in 50 or more fixed-income accounts, should be part of the bankruptcy estate.
The question of parish immunity — and whether the archdiocese should have to turn over parish financial information — prompted the day’s most heated exchange.
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