A bankruptcy judge declined to order a new sale of properties belonging to the Diocese of Gallup even though auctioneers made an “error in judgment” by turning away a newspaper reporter and a graduate student from what had been billed as a public auction last month in Albuquerque, N.M., The Albuquerque Journal reported today. Bankruptcy Judge David T. Thuma said that ordering a new auction could harm victims of sexual abuse by priests by reducing the money available to settle the diocese’s chapter 11 case. Auctions held last month netted the diocese about $160,000 after fees were paid to real estate brokers handling the sales. As of June 30, legal and professional costs in the case had mounted to more than $2.6 million. The Diocese of Gallup became the ninth Roman Catholic diocese to file for bankruptcy in 2013 in response to a growing number of lawsuits by people alleging that as children they had been sexually abused by clergy. In all, 57 alleged victims of sexual abuse have been identified as claimants in the case.
In related news, "Diocese and Religious Order Bankruptcies" will be a featured session at this year's Winter Leadership Conference, to be held Dec. 3-5 at the Arizona Biltmore in Phoenix, Ariz. For more information and to register, click here.