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Milwaukee Archdiocese Bankruptcy Mediation Extended

Friday, October, 12, 2012


The Milwaukee Archdiocese, victims of sexual abuse at the hands of clergy members and others have had their mediation process extended for a second time by Judge Susan V. Kelley of Milwaukee County in the hopes of the parties agreeing on a settlement.

Creditors involved in the mediation are victims of sexual misconduct at the hands of church employees and members of the clergy. A deadline of October 2 was given to the parties to come to an agreement, but has since been extended to October 12 as the dispute is still unresolved.

Victims Involved in Civil Mediation Seek Compensation

Two deaf men, Gary Smith and Art Budzinski, are among those who have filed claims against the church, saying that they were molested as children while attending St. John's School for the Deaf in St. Francis. Smith and Budzinski are also part of a documentary film, “Mea Maxima Culpa: Silence in the House of God” that sheds lights on the incidents and was recently shown at the Milwaukee film festival.

The issue at hand regarding the case is how many of the 570 victims are eligible for compensation and how much they should be compensated. Nearly 500 of the victims are claiming to have been abused as children by members of the church. One mediation attorney on the case stated that a settlement will not be reached unless it includes a release of church documents.

Archdiocese Objects to Certain Claims during Mediation Services

In January 2011, the archdiocese filed for Chapter 11 bankruptcy protection. This occurred during the midst of over twelve fraud lawsuits. The archdiocese claimed that bankruptcy protection was the only way they could fairly compensate victims while continuing to service the community.

The archdiocese continues to object to claims in which the statute of limitations has expired on certain cases, involve victims that did not receive fair compensation, or include allegations against teachers or priests for whom they did not consider legitimate employees at the time of the charged incidents. The mediation has been kept strictly confidential.