Abuse Settlement May Include Parish Cash

The Diocese of Wilmington, Del., plans to appeal a federal bankruptcy judge’s ruling that the funds deposited by parishes, schools and other Catholic entities into its investment fund are property of the diocese and subject to distribution to victims of sexual abuse by members of the clergy. Judge Christopher Sontchi said in his decision on June 28 that the entire $120 million pooled investment account held in the name of the diocese should be considered diocesan assets, even though the diocese said it has only $45 million of its own money in the account. Others with funds in the pooled investment account include five parishes, four schools, three cemeteries, three present or former group homes for children, the Catholic Youth Organization and the Catholic Diocese Foundation. Bishop W. Francis Malooly of Wilmington announced in October 2009 that the diocese had filed for bankruptcy protection. His announcement came a day after the breakdown of settlement negotiations with representatives of eight victims of abuse.

Comments are automatically closed two weeks after an article's initial publication. See our comments policy for more.

Advertisement
Advertisement

The latest from america

Pope Francis arrived in Vilnius, the capital of Lithuania, to celebrate the centenary of the country’s independence.
Gerard O’ConnellSeptember 22, 2018
Pope Francis has recognized all the remaining bishops who were ordained in China in recent years without the pope's approval.
Gerard O’ConnellSeptember 22, 2018
In a historic breakthrough, the Holy See has signed today, Sept. 22, “a provisional agreement” with China on the appointment of bishops.
Gerard O’ConnellSeptember 22, 2018
Youths attending a pre-synod meeting participate in the Way of the Cross at the Basilica of St. John Lateran in Rome on March 23. (CNS photo/Paul Haring)
The meeting of the Synod of Bishops on young people is an opportunity for an ongoing conversation between everyday lived experience and church teachings.
Michele DillonSeptember 21, 2018