The Archdiocese of Milwaukee filed a lawsuit on Wednesday in bankruptcy court seeking to recover more than $2.6 million in legal fees from the firm now known as OneBeacon Insurance Co., the Milwaukee Journal Sentinel reported today. On the same day, OneBeacon asked Bankruptcy Judge Susan V. Kelley to lift the automatic stay imposed by the bankruptcy on all litigation involving the archdiocese so the Wisconsin Supreme Court can decide once and for all whether the insurer is liable for the church's actions related to the sexual abuse of children. The filings come as the archdiocese is completing work on a reorganization plan that will detail how it plans to compensate creditors, including victims, and finance its continued operations. The plan is expected to include millions of dollars in legal fees.
