Delaware Catholic Diocese Files Bankruptcy

Sex Abuse Case Against Diocese of Wilmington and Former Priest Delayed by Church's Cash Trouble

(AP)  A high-profile sex abuse case that was set to start Monday against Delaware's Catholic Diocese of Wilmington and a former priest will be delayed after the church filed for federal bankruptcy protection.

The bankruptcy filing late Sunday automatically delays the case in Kent County Superior Court, the first of eight consecutive abuse trials scheduled in Delaware.

"This is a painful decision, one that I had hoped and prayed I would never have to make," said the Rev. W. Francis Malooly, the bishop of the diocese, on the diocese's Web site.

Malooly said the decision was made "after careful consideration and after consultation with my close advisers and counselors" and that he believed "we have no other choice." He said "filing for Chapter 11 offers the best opportunity, given finite resources, to provide the fairest possible treatment of all victims of sexual abuse by priests of our Diocese."

"Our hope is that Chapter 11 proceedings will enable us to fairly compensate all victims through a single process established by the Bankruptcy Court," Malooly said.

The diocese covers Delaware and the Eastern Shore of Maryland and serves about 230,000 Catholics.

Thomas Neuberger, an attorney representing 88 alleged victims, described the bankruptcy filing as a "desperate effort to hide the truth from the public and conceal the thousands of pages of scandalous documents" from being made public in court.

"This filing is the latest, sad chapter in the diocese's decades long 'cover-up' of these despicable crimes, to maintain the secrecy surrounding its responsibility and complicity in the sexual abuse of hundreds of Catholic children," Neuberger said in a statement.

Monday's case would have been the first to come to trial under a Delaware law that created a two-year "lookback" window that allowed claims of abuse to be brought regardless of whether the statute of limitations had expired. More than 100 lawsuits were filed before the period ended this summer, with four being settled.

Civil liability is the only recourse for victims of abuse that happened long ago because the U.S. Supreme Court has said states cannot change the statute of limitations for criminal cases.

Neuberger said the diocese's action may mean some sick and aging victims - some who claim they were abused when they were as young as 8 - could die before getting their day in court.

Attorneys negotiated throughout Sunday trying to reach a settlement, but couldn't.

The Diocese of Wilmington is the seventh U.S. Catholic diocese to seek Chapter 11 bankruptcy protection since the church abuse scandal erupted seven years ago in the Archdiocese of Boston. Dioceses in Davenport, Iowa; Fairbanks, Alaska; Portland, Ore.; San Diego; Spokane, Wash., and Tucson, Ariz., also sought bankruptcy protection. The San Diego case was dismissed.

Neuberger said he would make court filings in Delaware to "meet this fraudulent tactic with the full and immediate force of the law." He also vowed to seek out all assets of the diocese and its parishes.

More than 20 Delaware plaintiffs have filed lawsuits against former priest Francis DeLuca. DeLuca served for 35 years but was defrocked last summer after having been jailed in 2007 in New York for repeatedly molesting his grandnephew.

Barbara Blaine, president of the advocacy group Survivors Network of those Abused by Priests, said the church has all the resources it needs to take care of victims, and she described the bankruptcy filing as a way of hiding the truth.

"The bottom line is that the bishop doesn't want the truth to be exposed," Blaine said.

The diocese has paid more than $6.2 million since 2002 to settle sexual abuse lawsuits. Like others around the country, it also has paid settlements to alleged victims who did not file lawsuits.

An annual report filed earlier this year by the U.S. Conference of Catholic Bishops stated that the church has paid more than $2.6 billion in settlements and related expenses since 1950.

[rickthomas5]

I understand exactly where Brian is and I agree. I quit more than 30 YEARS ago not only because I don't see any need to invest my hard earned money in to cult of sexual deviants but they are like cops as they hide behind their robes when one of their perverts gets caught with their hands in the kiddie jar. Who in their right minds would want to be a part of that?

[hungry1968-16]

How can this church claim bankruptcy, while the pope takes a dump in a 24k solid gold toilet, in the midst of his multi-billion dollar kingdom?

This whole thing is the church trying to sweep it's atrocities under the rug, and hoping that no one sees the 5 foot tall lump, under the carpet.

[DaVicar8]

by hungry1968-16 "How can this church claim bankruptcy, while the pope takes a dump in a 24k solid gold toilet, in the midst of his multi-billion dollar kingdom?"



How did all those banks fail last year, when Allan Greenspan was making millions of dollars a year running the Fed?
Your analogy doesn't make any sense.

[talltimber41]

The Bishop "prayed" that he would not have to file chapter 11. His flippant use of Prayer is an example of what is wrong with The Church. He should pray for forgiveness because he and the rest of the core of The Church is what needs fixing.

[pcevet4]

Father O'Malley, don't diddle the kiddies, I told ya. Ya wouldn't want to see the church's gold on eBay, would ya now?

[chonder2]

Goodbye Father Glandnhand.

[MUJofSL]

It is unfortunate that the previoius bishop had to retire as he seemed to have his flock and not the coverup of preditor priests as his goal. To think that DeLuca abused over 31 children from 1958 to 2006 when the Bishops and Priests of the Wilmington Diocese knew of his beastial actions from at least 1962, is why this case could not be allowed to be in public view. Add to this preditor the other 10 to 30 abusing priests who were covered up by the hierachy and you can understand why the current Bishop prayed this would not come before a jury. The DE church and the Vatican were aware of their preditors for years whether in DE Ireland or other countries where this behavior was allowed. The flock of innocents was never taken care of and this is just a continuation of their attitude.

[Ms_enza]

It's about time someone sue the Vatican and drag this thing up to the SCOTUS.

The church buildings and land holdings of the Catholic church make them among he nation's wealthiest.

SEIZE PROPERTY.

[DaVicar8]

Sure...this Country would be a lot better off if the courts simply seized all of our property!
I hope you are practicing your salute while you goosestep.

[dontknowitall]

How can a not for profit business file for bankruptcy when their corporate office is stable? Oops, how stupid of me. The Catholic church has just proven to me that religion IS a FOR PROFIT BUSINESS and there is no god. Their god is GOLD.It's a hoax and fraud. All these years the church has been a homosexual haven and in it for the CASH.

[G-I_Jesus]

Too Much Red Bull

The Catholic Church isn't fixing the problem at all. Like the Jewish rabbis who have the end of their ******* cut off (to stop the spread of sexual transmitted diseases) or the Arab clergy who let their pubic hair grow very long (to cover the shame), the Christian priests should have their balls cut off.

[missme4]

I gotta get me some of that religion! In Jesus' name...Ahmen!

They can get their money back by running "faith based" foster care. The local child protective service is all too happy to provide forcibly removed children.

[gangesdak]

Celibacy is a strange word in the US akin to self denial or self punishment. Most people- regular church going ones- do not even know the word renunciation. That tells me what the pastors/ priests talk about in churches- perhaps dammm abortion or something similar. This is the society Catholic priests come from. Naturally Catholic priests feel deprived, and many compensate the deficiency by preying on children.