Roman Catholic church must pay for past abuses, files bankruptcy

San Diego Roman Catholic Diocese to file for bankruptcy.

The diocese, which will be filing for Chapter 11 bankruptcy on Monday, said its parishes, charities and schools would continue normal operations.
The Roman Catholic Diocese of San Diego announced Thursday that it will file for bankruptcy in the wake of hundreds of legal claims from alleged sexual abuse victims.

In a letter to parishioners and clergy, Cardinal Robert McElroy wrote that bankruptcy would help the diocese fulfill its goals going forward, while also compensating abuse victims.

Last year, McElroy announced the possibility of bankruptcy in a separate letter, when he wrote that the diocese "must face the staggering legal costs" in response to lawsuits alleging abuse dating back as far as 1945.

In 2007, the Diocese settled lawsuits brought by 144 victims, but recently more than 450 claims have been made against the diocese, according to a statement. The diocese said more than 60% of the latest claims are for incidents that occurred more than 50 years ago.
In last year's letter, McElroy wrote that the 144 claims were settled for $198 million, but settling the present claims at the same rate would cost more than $550 million.

"The diocese faces two compelling moral claims in approaching the settlement process: the need for just compensation for victims of sexual abuse and the need to continue the church's mission of education, pastoral service and outreach to the poor and marginalized," McElroy said. "Bankruptcy offers the best pathway to achieve both."

https://www.nbcsandiego.com/news/local/san-diego-roman-catholic-diocese-file-bankruptcy/3540886/