Nearly four years after filing for bankruptcy, the Diocese of Duluth (Minn.) will go before a judge today for final confirmation of a reorganization plan that would provide approximately $40 million in compensation to victims of child sexual abuse, the Duluth News Tribune reported. Bankruptcy Judge Robert Kressel will review the proposed settlement at an 11 a.m. hearing at the federal courthouse in Duluth. If he signs off, up to 125 survivors who filed claims could soon begin receiving payments, and the diocese would finally emerge from bankruptcy protection. The diocese voluntarily filed for chapter 11 protection in December 2015 in the wake of a $4.9 million jury verdict. That award came in the first lawsuit in the state to go to trial under the Minnesota Child Victims Act, which opened a three-year window for victims of decades-old abuse cases to file suit. An onslaught of claims followed in the bankruptcy process. The case, however, was mired in litigation for years as the diocese sued to force coverage from five insurance companies — a matter complicated by the fact that the abuse claims date as far back as the 1940s. All five insurers eventually settled, with contributions ranging from $250,000 to $15 million. Under the reorganization plan announced in May, the diocese itself would provide more than $10 million to a distribution trust, with contributions expected from most or all of its 75 parishes as well as other Catholic entities. Insurers are covering the remaining sum.
