2011 VSB Media Report

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FACULTY MEMBER FEATURED : CHARLES ZECH (ECONOMICS) DATE: JAN. 4, 2011 MEDIA OUTLET: JOURNAL SENTINEL AUTHOR: ANNYSA JOHNSON AND PAUL GORES

Archdiocese of Milwaukee files for bankruptcy protection The Catholic Archdiocese of Milwaukee, which faces more than a dozen civil fraud lawsuits over its handling of clergy sex abuse cases, filed for Chapter 11 bankruptcy protection on Tuesday. Archbishop Jerome Listecki, speaking on the first anniversary of his installation, said the move was necessary to fairly compensate victims and to continue the "essential ministries" of the church. "As a result of the horrific actions of a few, there are financial claims pending against the archdiocese that exceed our means," Listecki said at a news conference at the Cousins Center in St. Francis, which houses the archdiocese headquarters. He said the recent failure to reach a mediated settlement with victims and a court decision absolving its insurance companies of liability in the cases "made it quite clear that reorganization is the best way to fairly and equitably fulfill our obligations." Victims' advocates and plaintiffs attorney Jeff Anderson characterized the filing as a ploy to protect the church and delay justice. They note that the move puts the civil fraud cases on hold, including the scheduled deposition of retired Auxiliary Bishop Richard Sklba, who has been called the "go-to-guy" for then-Archbishop Rembert Weakland in the handling of sex abuse cases. "This is about protecting church secrets, not church assets," said David Clohessy, national director of SNAP, the Survivors Network of those Abused by Priests. "The goal here is to prevent top church managers from being questioned under oath about their complicity, not 'compensating victims fairly.'" Milwaukee, with an annual operating budget of about $24 million, is believed to be the eighth Catholic diocese in the United States to declare bankruptcy in response to the clergy sex abuse scandal. The others are: Tucson, Ariz.; Portland, Ore.; Spokane, Wash.; Fairbanks, Alaska; Wilmington, Del.; San Diego; and Davenport, Iowa. Some of those cases have concluded; others are still pending. Legal experts say it is difficult to make generalities about them, because the facts and financial circumstances differ from diocese to diocese. The effects on parishioners also have differed. In Tucson and Spokane, for example, parishes were asked to pay a portion of the settlements - almost like a tax, said

2011 Media Report Villanova School of Business Page 5


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