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Gallup Diocese Case Attorney Says Deal Is “Nonbinding”

Submitted by jhartgen@abi.org on

An attorney for alleged victims of sexual abuse by priests has declined to sign a letter listing financial terms of a settlement in the Diocese of Gallup, N.M., bankruptcy case because the agreement is “nonbinding,” according to an attorney in the case, and could allow insurers to walk away from the deal, the Albuquerque Journal reported on Thursday. “We want to know that the letter means something,” and that insurers and others are required to provide the amounts indicated in the letter, said James Stang, who represents 57 alleged victims of clerical abuse who have filed claims in the case. Bankruptcy Judge David T. Thuma said that he was not surprised that attorneys are having difficulty finalizing a settlement in the 2-year-old bankruptcy case and asked them to continue working toward resolution. He set a hearing for Jan. 6 to review any progress toward a deal.