Cardinal Law Gets OK to File Bankruptcy

Washington Post ^ | 12/4/02 | Justin Pope

[Itzlzha]

BOSTON –– A financial panel of the Boston Archdiocese gave Cardinal Bernard Law permission Wednesday to file for bankruptcy as the church tries to settle potentially crippling lawsuits in the priest sex abuse scandal. Law would need approval from the Vatican before filing for bankruptcy.

[Itzlzha]

Interesting...apparently the need to protect assets outweighs the victims and the legal fees required to get Bernie Law to admit to what was done under his rule...

[SamAdams76]

The Boston Archdiocese has already been morally bankrupt for years now. My wife grew up a Catholic and she can't even step inside a Catholic church these days. We are both so repulsed.

[Barnacle]

Ping

[Torie]

I wonder who will buy his pad, and what it will be used for? Perhaps for a think tank or foundation, or for an offsite facility for a university perhaps.

[breakem]

Can the victims sue the parent company?

[Gary Boldwater]

Why not just demand reparations from all Catholics?

[ClearCase_guy]

I truly have been reluctant to criticize the Church on this matter. I'm not Catholic and I think I have no right to criticize them. But (you knew that was coming, right?) I do think that time and time again, throughout this entire scandal, Cardinal Law has consistently proven that he just does not care about the victims.

Some months ago, as I recall, The archdiocese of Boston declared that all the scandalous information about priests had been released. They'd gone back literally for decades and put it all out there. One hundred percent. Really covered everything.

Oops! We just found out about a whole sackful of new stuff -- involving priests with teenage girl friends and cocaine parties and such. Sickening. They were hoping that would remain hidden. Even at this late date, they're trying to protect priests and let the victims suffer alone.

[CatoRenasci]

The more interesting question will be whether the suits against the Church will be amended to include intentional torts, rather than mere negligence. Judgements based upon intentional torts are not dischargeable in bankruptcy.

[Ciexyz]

Why doesn't the Catholic Church do what the Protestants do when a clergyperson is involved in sin. Bounce 'em and slam the door behind 'em.

In the Presbyterian system, the Session (governing board of each local church) would rescind the church's call to that person, give him a settlement of sorts, and he'd be gone within a few months. Then they'd start advertising for a replacement.

[Notwithstanding]

The victims are victims. The rest of the Catholics in the archdiocese have not done anything to the victims - the archbishop, Law, did. Thus the rest of the Catholics in the archdiocese are also victims of Law. Maybe they can sue Law to prevent him from selling or giving away their parish properties? That way everyone can be a victim and sue, sue, sue. The lawyers will all get rich. And the Catholic-haters will continue to reach sexual climax at the folly of it all.

[Torie]

Ya, but you still need to pierce the corporate veil, and the individuals involved are impecunious relatively speaking. So non-dischargeability is a non-issue. A new entity with new money will be created.

[APBaer]

"intentional torts are not dischargeable in bankruptcy"

The offsetting consideration is that they are usually excluded from coverage in the insurance policies.

[CatoRenasci]

Indeed, that's been the problem in many of these cases: it was necessary to sound in negligence in order to go for the insurance coverage.

[jimkress]

When it comes to sexual abuse of children by 'priests' the catholic church is a criminal enterprise. It should be treated as such, using the RICO statutes.

[chiefqc]

Law is now offically morally bankrupt.

[NYer]

A bankruptcy filing would put litigation against the archdiocese on hold. It could also help the archdiocese get a better handle on what it will owe alleged victims, which could in turn assuage donors who have yanked support from the church because of the abuse scandal.

This is an interesting scenario ... a test case for other dioceses that find themselves in a similar situation. LA immediately comes to mind.

In a related development, Appearing at a public forum at Albany Law School, Bishop Howard Hubbard replied to pointed criticism from angry Catholics and victims of clergy sexual abuse Tuesday night with repeated apologies and assurances that new church rules have excised pedophiles from the priesthood.

"We have a bishop in charge who has committed fabrications, concealment and payoffs," said Walt Pologa, a retired accountant from Albany.

"We trusted you, you are a man of the cloth. These children who were molested were youngsters who had no one to protect them. I ask you Bishop Hubbard, what do you intend to do to have this be more open?"

On the surface, Hubbard has put on a contrite expression but all reports indicate that victims are still being ignored. FULL TEXT

[F16Fighter]

"There's no BK protection at the Pearly Gates."

LOL...

In fact Cardinal Law may find himself surprised that the elevator may be going down.

[Desdemona]

Oh, you all in Albany have my sympathy.

We lucked out here. Not only have the perverts been kicked out all along and once and for all, but this archbishop is letting lay people help with finances and financially we're in really good shape. And all suits have either been dropped or not gone to trial for lack of evidence.

The poor people in Boston...that it would come to this. And then with LA still sitting - talk about a time bomb. That's going to be a nightmare. Hey maybe we'll luck out and Mahoney will get himself excommunicated.

[wideawake]

A bankruptcy makes sense - on the analogy of companies which are beleaguered by asbestos lawsuits.

The analogy works: many companies have thousands and thousands of such asbestos suits against them - but only a fraction of the suits are filed by people who are (a) actually sick and (b) were actually injured by the party they are suing. They're just going after deep pockets. It costs nothing to add one's name to a class action lawsuit, one can add one's name anonymously and the chances of someone being made liable for frivolous or false litigation is minimal.

The Church finds itself in a similar situation - a certain number of people have been grievously injured. However, anyone can just anonymously accuse a priest of abusing them, add their name to a lawsuit and not get in trouble if they're later found out to be lying.

A bankruptcy allows the diocese to evaluate claims and make sure that the people who were actually harmed are compensated, while ferreting out adventurers and lars.