Catholic Diocese of Wilmington Files for Bankruptcy

Filed in National by on October 18, 2009

So says the Del Editor Twitter feed. No link to the story yet. First, I am not sure how the finances in the Catholic Church and their respective dioceses work. Is each diocese responsible for their revenue and expenditures without any assistance from any other diocese or Rome? If that is the case, then it is easy to understand why individual dioceses can file for bankruptcy, as tithes and donations can ebb and flow with the economy. Add to that settlement payouts to abused children, and a diocese’s funds can be tapped pretty quickly.

But with all the money the Vatican has, I do not find that fair. Shouldn’t the Church take care of its own?

UPDATE: Here is the link to the story at the News Journal.

The move comes hours before the start of the state’s first trial in an alleged clergy sex-abuse case.

“This is a painful decision, one that I had hoped and prayed I would never have to make,” said Bishop W. Francis Malooly in a statement.

“However, after careful consideration and after consultation with my close advisors and counselors, I believe we have no other choice, and that filing for Chapter 11 offers the best opportunity, given finite resources, to provide the fairest possible treatment of all victims of sexual abuse by priests of our Diocese. Our hope is that Chapter 11 proceedings will enable us to fairly compensate all victims through a single process established by the Bankruptcy Court.” […]

It joins a list of six other dioceses in the United States that have filed for reorganization under Chapter 11 of the bankruptcy laws in what lawyers said is an attempt to manage an avalanche of clergy sexual-abuse litigation.

Sounds like a preventive move to limit jury awards to the abused. Smart business move, but disgustingly immoral. A good description for the U.S. Catholic Church as an organization. (I am a observant Catholic, and the faith is different from the Church, so shove your charges of Catholic bashing).

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  1. Is it possible to separate on diocese from the church as a whole? The international Catholic church still has a lot of money, right?

  2. Delaware Dem says:

    It does. But I imagine international law comes into play as to why a Delaware resident cannot sue the Vatican, when he can sue the Diocese of Wilmington in Delaware.

  3. nemski says:

    This is sad news for many of my Catholic friends and family. The fact that it is on the eve of their child abuse court case is quite disturbing.

  4. Delaware Dem says:

    If, as I believe they are, these cases are civil cases, then they will most likely be stayed by the Bankruptcy filing. Justice denied.

  5. nemski says:

    It appears that the Church is taking care of themselves and NOT their flock.

  6. Full article here.

    According to the filing, the diocese has $100M in assets and $500M in debt.

  7. Looks like Greg Lavelle’s plan to delay and deny justice may have worked.

    Nice to know that when the Bishop prayed on this decision, the Lord sayeth, “Settle for pennies on the dollar.”

  8. Al says:

    This is sad for everyone. While those who have been wronged deserve justice, I am equally disturbed by “deep pocket” lawyers once again looking after their own interests rather thatn trying to find a just settlement. The amount the lawyers receive, espeially the one representing 88 people, is directly proportional to the amount they can sue for and win. So, for me, this is just another lawyerly extortion attempt masquerading as care for the injured.

    The vast majority of the Catholic Church’s members and clergy are good, honest people doing good work. The concern is also for the myriad of social and welfare programs, including schools, hospitals and other programs the church sponsors.

    Yes, the people wronged deserve justice and compensation, but at the expense of thousands of others helped by the church and to enrich a few lawyers?

  9. The reason the victims need lawyers is because the church looked out for itself more and not for its parishioners.

  10. Paise says:

    “I am a observant Catholic, and the faith is different from the Church, so shove your charges of Catholic bashing”

    Sounds a lot like a CINO to me….you won’t address your lack of faith sort of like the “Independents” you accuse of being Republicans.

  11. cassandra m says:

    The reason the victims need lawyers is because the Church is still looking out for themselves and is fundamentally disinterested in making amends for their past mismanagement and continue to look for ways to sweep this business under the rug.

  12. Brooke says:

    There’s no doubt at all that the reason they did this was to halt the case that would have opened today. It took an act of the state legislature to make it possible to sue, but victims had a very narrow window to decide to do that. Now another barrier is created, to limit settlements and the time for reaching them. If the diocese really wanted to help the people they’d victimized, they’d save money on lawyers and PR people and try to make restitution to the families they’ve injured.

    You’ll notice they got their Bishop a nice sendoff before announcing this. Picture the outrage if this was an ‘ordinary’ corporation.

  13. h. says:

    I thought the church had more money than god.

  14. Paise says:

    “Picture the outrage if this was an ‘ordinary’ corporation.”

    The corporation would just bribe some union thug to get the rank and file in line with rationalizations and support.

  15. To offer some reality, the Diocese is an ordinary corporation protected by the same protections we all enjoy. You may disagree with their actions on abuse (so do I) but that fact does not change law.

    The actions of the Church have indeed affected my actions as a Catholic( giving) but not my faith.

    Mike Protack

  16. anon says:

    No one needs the Catholic church for their faith. This is another move motivated solely to pay as little as possible for their crimes. Feel no pity for those who take advantage of our youngest and least defensive citizens. God certainly won’t.

  17. liberalgeek says:

    St Peter: When it came time to pay for the bad behavior of your brother, you behaved in a way unbefitting of a man of God.

    Cowering Priest: Can I declare bankruptcy for my sins?

  18. Progressive Mom says:

    The next few decades are going to be extremely difficult for the corporation known as the Catholic Church. Currently, there are very few solvent diocese(s) in the U.S.; nationwide, churches are closing, pews are empty and donations are reducing; there’s a severe shortage of all nuns and clerics; and there’s a detached, pre-Vatican II man in the “Seat of Peter” who seems uninterested in his corporation’s problems.

    I suspect that in my children’s lifetime, many parts of this country will have a traveling Catholic priest, Mass one Sunday a month, and far less emphasis on real estate — more on ministry.

  19. Paise says:

    Catholic Church = morally strong, financially bankrupt

    Democratic Party = financially strong, morally bankrupt

    I’m beginning to see the adversarial relationship!

  20. Jason330 says:

    When I’m commenting on a religion like Catholicism, I like to add things like “…(rolls eyes)…” and “as if.”

    You know, so the real protestant God will not think that I’ve been taken in by the Roman nonsense.

  21. Paise says:

    You just wish you could put together a Cliff’s Notes for the Bible.

  22. anon says:

    You just wish you could put together a Cliff’s Notes for the Bible.

    Chapter 1, verse 1. “Don’t bugger kids.”

    There you go.

  23. Paise says:

    And those who do shall be judged…apparently in some sort of arbitration to ensure equitable treatment.

    C’mon….you liberals love rationalization and moral relativism. You should be eating this stuff up!

  24. rhubard says:

    “The vast majority of the Catholic Church’s members and clergy are good, honest people doing good work.”

    You mean, like ACORN?

  25. Paise says:

    Sort of like ACORN, but they done hafta ax ennie kestshuns.

  26. Progressive Mom says:

    ?

  27. Suzanne says:

    Just one more time that the Catholic Church cares more about itself then it’s “sheep” – and they care so little about the survivors of priest abuse that they have to go this route?

    The Wilmington Diocese is doing the same as what was done in San Diego (http://www.calcatholic.com/news/newsArticle.aspx?id=e2319c12-8010-4057-befc-dc7f299f270c) – putting the suits on hold by filing for bankruptcy rather then “assuring fairest possible treatment of all victims”. They don’t give a rats ass about the victims.

    According to Pittsburgh’s School of Law, Wilmington is the seventh Catholic diocese to file for Chapter 11 bankruptcy protection!

  28. Paise says:

    Anything that irritates liberals is God’s noble work!

  29. Faggot96 says:

    Originally branded under the main family name, it was changed to Now Hity later in the run. ,

  30. Frank says:

    This is a sad and disgusting commentary on the priests and the hierarchy of the Diocese of Wilmington, Delaware. I’m critical of the “predator priests” and especially of the Bishops of the Diocese. In the 1960’s, 70’s, the Bishops allowed the “predator priests’ to continue on in their parish of assignment or in some cases, they were transferred to other parishes in the diocese where they continued their criminal activity by sexually abusing other young children. To escape financial liability, I see the Diocese has filed for bankruptcy. The victims of these heinous crimes deserve every cent the court of law will allow. Now, due to the filing of bankruptcy, that appears to have gone by the wayside. Again, this adds to more disgust of the Diocese of Wilmington.

  31. prevat says:

    If the diocese had not filed bankruptcy and the first half dozen cases got all of the $$$, I would be left with nothing when it is my turn. How fair is that? I am part of the flock too.