Federal Judge Orders Milwaukee Archdiocese Bankruptcy Case Back To Mediation

A federal judge ruled on Wednesday that a bankruptcy and clergy abuse case involving the Milwaukee Catholic Archdiocese will once again head back to mediation.

More than 550 clergy abuse victims are seeking payments in the bankruptcy case, and other potential creditors have also filed claims. The Milwaukee archdiocese, however, has argued that enough of the contentious issues have been settled to let a mediator sort out the rest.

Archdiocese Chief of Staff Jerry Topczewski acknowledges mediation requested by creditors failed in 2012. This time, he thinks it will be different.

“Now, basically all the issues of the Chapter 11 have been resolved except for the cemetery perpetual care trust, and some of the questions on insurance coverage, and some question on which claims still remain eligible and which claims will be out,” he said.

Abuse victims are hoping the 7th U.S. Circuit Court of Appeals in Chicago will overrule a Milwaukee judge and decide the church’s cemetery fund can be available to the creditors. Abuse victim Monica Barrett said that with that issue pending, she’s not sure if mediation will succeed.

Barrett also said she urges worshippers to try to get the church to take the mediation effort seriously, contending the three and half years spent in the bankruptcy court have not helped parishioners.

Federal Bankruptcy Judge Susan Kelley said she hopes the mediation will start in September.