Archdiocese Seeks Permission to Continue Financial Support and Protect Privacy of Victims/Survivors

March 14, 2011

The Archdiocese of Milwaukee today filed two motions in US Bankruptcy Court aimed at protecting the interests of victims/survivors of clergy sex abuse as the Archdiocese goes through Chapter 11 reorganization.

One motion asks U.S. Bankruptcy Court Judge Susan Kelley for permission to continue paying for psychological counseling and therapy for those who have requested it and to continue making installment payments to victims/survivors as specified in existing settlement agreements.  In a bankruptcy, the court must approve any expenditure that falls outside normal operating expenses to protect creditors’ interest in maximizing funds available for distribution.

“We want to continue this outreach to those who benefit from it,” said Milwaukee Archbishop Jerome E. Listecki.  “This is part of the ongoing ministry of the Church; to care for those who have been harmed.”

The archdiocese has been providing therapy for victims/survivors since the 1990s and, in recent years, it has been paying just over $70,000 a year to provide this support.

The motion also notes that the archdiocese is making installment payments to victims/survivors who reached settlements through the independent mediation process established by the archdiocese in 2004. While final payments have been made to 170 individuals, $702,000 is still owed to 22 others. Of that total, $311,000 is owed this year.

The motion seeks permission to continue paying for counseling and therapy, and related costs, as well as funding the promised settlement payments, including for two cases that are still under mediation, noting that any monetary settlements would need to be approved by the court.

Halting settlement payments that were promised in mediated agreements “would result in significant economic and emotional harm” to the affected victims/survivors, the motion states.

Paying for counseling and therapy “fits squarely within [the archdiocese’s] mission of providing resources, spiritual leadership, direction and support,” it goes on to say, adding that the cost of continuing to provide this support will have an insignificant impact on what creditors receive when the archdiocese’s available assets are distributed.

The second motion seeks to establish special procedures for delivering official notices to victims/survivors who are involved in the bankruptcy proceedings so their identities can remain confidential if they so desire.

In all its past dealings with victims/survivors, the archdiocese has pledged to maintain confidentiality. Though individuals are free to publicly identify themselves as victims/survivors, most choose not to disclose this information, sometimes even to their families.  

To ensure continued privacy for those who want it, the archdiocese is asking Kelley to approve procedures that would keep the names of victims/survivors off the list of creditors and deliver bankruptcy-related official notices to them through their attorneys or other intermediaries.

“The archdiocese is committed to administering this case and the notice process in a manner that is designed to prevent…any psychological, emotional or other damage or embarrassment to any victims/survivors or their families,” the motion states.

“These motions reflect our desire to honor our existing commitments to those who have been harmed and prevent any additional hurt to victims/survivors and their families,” Listecki said.