MILWAUKEE (WI)
National Catholic Reporter
Marie Rohde | Mar. 10, 2015
MILWAUKEE In a decision that could have far-reaching implications, the 7th Circuit Court of Appeals ruled that the Milwaukee archdiocese can’t rely on the free exercise of religion clause in the First Amendment or the Religious Freedom Restoration Act as protections against claims in its bankruptcy case.
The key question in the Milwaukee case of whether approximately $55 million placed in a trust for the care of cemeteries can be used to pay off the archdiocese’s debts in bankruptcy was not answered in the decision. Mounting legal fees — now at least $16 million but possibly as high as $20 million — raise the question of whether much will be available to pay debts and compensate those who claim to have been sexually abused.
The appellate court decision issued late Monday is not a final decision. The court also found that U.S. District Judge Rudolph Randa, who ruled in the archdiocese’s favor, should have stepped aside because of a conflict of interest. A new judge will have to be appointed to decide the issue of the trust fund based on the appellate findings that the First Amendment and Religious Freedom Restoration Act do not apply.
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