Catholic Church Use of Chapter 11 to Resolve Mass Tort Claims Regarding Sexual Abuse By Priests

Chapter 11 tort claim funds and trusts, backed by injunctions against litigation, are used for more than just chapter 11 asbestos claims. Thus, at least seven Catholic dioceses are using chapter 11 filings to resolve sexual abuses claims and to marshall insurance assets. A very focused litigation reporter on the subject is one of many available from the InterNet Bankruptcy Library located here. The Fairbanks Diocese in Alaska recently received confirmation of its plan that revolves around a trust to resolve the claims. The plan disclosure agreement is on line and provides a general summary of the plan. The website for the diocese includes the remainder of the plan documents.

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