Diocese of Duluth Seeks Bankruptcy Protection

By Tom Corrigan
Wall Street Journal
December 7, 2015

http://www.wsj.com/articles/diocese-of-duluthseeksbankruptcy-protection-1449514198

The Roman Catholic Diocese of Duluth, Minn., filed for bankruptcy Monday after being hit with an $8.4 million verdict in a clergy sex abuse case.

The diocese, which spans 10 counties in northeastern Minnesota, filed for chapter 11 protection in U.S. Bankruptcy Court in Duluth, court papers show.

Last month, a jury awarded $8.4 million to a man who says he was sexually abused in the late 1970s by a priest serving in the Diocese of Duluth. The diocese, which has said it is considering an appeal, says it knew nothing about the abuse and couldn't have prevented it.

In a statement on the jury verdict posted on the diocese’s website, it said it was contemplating bankruptcy as a way to compensate abuse victims while preserving the diocese’s pastoral and charitable mission.

“With other victims of clergy sexual abuse pursuing their cases in the courts and a finite pool of resources from which they might be compensated for their suffering, bankruptcy might ensure a more equitable distribution,” the diocese said.