Attorneys told a judge yesterday that progress in settling the 26-month-old Diocese of Gallup (N.M.) bankruptcy case has stumbled because an insurer is unwilling to provide detailed financial information demanded by a representative for future sex abuse claims against the diocese, the Albuquerque Journal reported today. An attorney for Catholic Mutual Relief Society of America, a church-owned nonprofit that insures the diocese, said that the dispute may lead Catholic Mutual to withdraw its offer to pay future claims against the diocese. Attorneys described the future claims fund as a crucial part of the settlement. The Diocese of Gallup in 2013 became the ninth Roman Catholic diocese in the U.S. to file for chapter 11 protection in response to lawsuits alleging sexual abuse of children by clergy. Mediation talks in December led to a tentative agreement on funding a settlement, but unresolved details include setting up a trust fund to pay for future claims.
