Iowa diocese files for bankruptcy
Big News Network (UPI)
Wednesday 11th October, 2006
The Roman Catholic Church's diocese in Davenport, Iowa, has filed for bankruptcy, causing pending clergy abuse lawsuits to be delayed.
The bankruptcy, which follows similar filings by dioceses in Portland, Ore.; Spokane, Wash.; and Tucson, also puts on hold a $1.5 million jury award to an abuse victim, the Des Moines (Iowa) Register reported Wednesday.
I and the leadership of the diocese believe that, as difficult as this decision is, it provides the best opportunity for healing and for the just and fair compensation of those who have suffered sexual abuse by clergy in our diocese, Bishop William Franklin said in a written statement.
Franklin had repeatedly cited Chapter 11 bankruptcy as a possibility after several lawsuits were brought against the diocese accusing the church of allowing priests who sexual abuse children to be moved to new assignments.
The diocese believes that the way recent state court rulings have gone, there will be no end of claims, said Rand Wonio, the lawyer for the diocese.
Consequently, the diocese had decided to turn over its assets for distribution to all claimants by federal bankruptcy court. This is a much more fair and equitable way compensate all victims.
Email this story to a friend
Have your say on this story