Delaware's Roman Catholic Diocese of Wilmington filed for Chapter 11 bankruptcy protection to block the start of the first civil trial relating to more than 140 sex-abuse claims against diocese priests.
The diocese became the seventh in the United States to seek bankruptcy protection and its filing
yesterday put on hold the scheduled start of eight consecutive civil trials relating to a defrocked priest.
An attorney for the victims called the bankruptcy part of a cover-up. But the church said it was the best way to resolve the cases fairly.
"This was the best path to achieve healing reconciliation and fair compensation for all the victims of child sexual abuse by clergy in this diocese," Wilmington Bishop W. Francis Malooly told a news conference today.
The diocese is facing claims from 142 alleged victims of sexual abuse. Malooly said he was forced to opt for bankruptcy after talks to settle claims failed, which raised the prospect of eight trials that stood to deplete the diocese's resources and leave nothing for other victims.
Bishop Malooly said three years ago his predecessor, the late Bishop Michael Saltarelli, released the names of 18 priests who had admitted, corroborated or otherwise substantiated allegations of abuse of minors.
An attorney for the victims accused the church of trying to hide the truth.
"This filing is the diocese's last, desperate effort to hide the truth from the public and conceal the thousands of pages of scandalous documents and stunning testimony," said a statement from Thomas Neuberger of The Neuberger Firm.
One victim, former altar boy James Sheehan, has already asked the bankruptcy court to allow his civil trial to begin in November as had been scheduled, due to his failing health.
In a court document, Mr Sheehan's attorney said in similar Chapter 11 cases, dioceses used bankruptcy to delay civil trials as long as possible while negotiating with insurers.
"Sheehan is unlikely to survive that process," the document said.
Reuters