NEW MEXICO
Wall Street Journal
By TOM CORRIGAN
Jun 22, 2016
The Roman Catholic Diocese of Gallup, N.M., on Tuesday won court approval of its plan to compensate clergy sexual abuse victims, paving the way for it to exit bankruptcy.
Following a hearing at the U.S. Bankruptcy Court in Albuquerque, N.M., Judge David Thuma signed off on the $25 million plan, which is largely funded by contributions from the diocese, insurance carriers, parishes and sales of the diocese’s property.
The bulk of the funds will be used to compensate victims, according to Susan Boswell, the diocese’s lawyer. Fifty-seven victims filed claims against the diocese, though not all will receive a payout because of prior settlements.
“This is, monetarily, a good resolution for the abuse victims,” Judge Thuma said. “I think it’s more money that any of us thought could be raised in this case.”
In return for victim compensation, the plan provides legal protections for the diocese and the other contributors that will shield them from future lawsuits tied to past abuse.
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