St. Paul archdiocese reaches deal in clergy abuse cases

ST. PAUL, Minn. –  The Archdiocese of St. Paul and Minneapolis has reached a settlement in its bankruptcy case with more than 400 people who said they were sexually abused by clergy, an attorney said Thursday.

Victims' attorney Jeff Anderson said in a statement that a "consensual bankruptcy reorganization plan" had been reached, but he didn't release a dollar amount ahead of a public announcement. A spokesman for the archdiocese confirmed a settlement was reached.

Both sides have scheduled news conferences Thursday afternoon.

The Minnesota Legislature in 2013 opened a three-year window in the statute of limitations that allowed people who had been sexually abused in the past to sue for damages. That resulted in hundreds of claims being filed against the archdiocese and led it to file for bankruptcy in 2015.

The bankruptcy case proceeded slowly as attorneys argued over how much money the archdiocese should have to pay. The archdiocese reported its net worth was $45 million. But attorneys for the victims maintained that the archdiocese's true worth was over $1 billion, counting assets of its 187 Roman Catholic parishes, as well as schools, cemeteries and other church-related entities. Victims' attorneys said those assets should be used to make more money available for victims.

Last month, a federal appeals court affirmed a 2016 decision by U.S. Bankruptcy Judge Robert Kressel that the parishes and other nonprofit entities were independent, meaning their assets could not be tapped in the bankruptcy case. Last December, Kressel rejected competing reorganization plans filed by the archdiocese and a creditors' committee led by Anderson and ordered both sides back into mediation.

At least 15 Catholic dioceses or archdioceses across the country have filed for bankruptcy, including three in Minnesota, as they sought to protect themselves from growing claims of sexual abuse by clergy members. A fourth Minnesota diocese, St. Cloud, announced its intention to file in February but didn't immediately set a date.

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Forliti reported from Minneapolis.

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