The Roman Catholic Diocese of Gallup, N.M., on Tuesday won court approval of its plan to compensate clergy sexual abuse victims, paving the way for it to exit bankruptcy, the Wall Street Journal reported today. Following a hearing at the U.S. Bankruptcy Court in Albuquerque, N.M., Bankruptcy Judge David Thuma signed off on the $25 million plan, which is largely funded by contributions from the diocese, insurance carriers, parishes and sales of the diocese’s property. The bulk of the funds will be used to compensate victims, according to Susan Boswell, the diocese’s lawyer. Fifty-seven victims filed claims against the diocese, though not all will receive a payout because of prior settlements. In return for victim compensation, the plan provides legal protections for the diocese and the other contributors that will shield them from future lawsuits tied to past abuse.
