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March
5, 2007
VOL.
45, NO. 5Oakland,
CA
San Diego Diocese files for bankruptcy
SAN DIEGO
(CNS) -- The San Diego Diocese has filed for Chapter 11 bankruptcy protection
to handle more than 140 clergy sexual abuse claims equitably. It is the
fifth and largest U.S. diocese to do so since 2004.
San Diego Bishop Robert H. Brom announced the decision Feb. 27, the day
before the first abuse lawsuit was to go to trial, after a last-minute
flurry of negotiations between diocesan and plaintiffs’ lawyers
brought no agreement.
“We put money on the table that would have stretched our financial
capability to the limit, but demands were made which exceeded the financial
resources of both the diocese and our insurance carrier,” Bishop
Brom said in a statement posted on the diocesan Web site.
The bankruptcy proceedings, which will be conducted under the jurisdiction
of the federal bankruptcy court in San Diego, effectively put any civil
lawsuits on hold.
“We have decided against litigating our cases because of the length
of time the process could take and, more importantly, because early trial
judgments in favor of some victims could so deplete diocesan and insurance
resources that there would be nothing left for other victims,” Bishop
Brom said.
“Chapter 11 reorganization is now the best way available for us
to compensate all of the victims as fairly and equitably as our resources
will allow.” he said.
With nearly a million Catholics, San Diego is by far the largest of the
five U.S. dioceses that have filed for bankruptcy since 2004.
