Diocese of Gallup, N.M., poised to file for bankruptcy protection
GALLUP,
N.M. When James Wall was installed by the Vatican as bishop of the diocese
of Gallup in 2009, he knew there were festering issues regarding allegations of
priest sex abuse, but not to the extent that has brought the sprawling
Southwestern diocese to the doors of U.S. Bankruptcy Court.
At Masses throughout the diocese over the weekend, parishioners were
read a letter from Wall that said in the face of insurmountable lawsuits, the
diocese intends to file for Chapter 11 bankruptcy protection.
Wall set no date for the court filing in his letter. He could not be
reached for comment.
Seven other U.S. dioceses have filed for bankruptcy protection in the
aftermath of sexual abuse lawsuits.
"While some of the claims relate to times when the diocese had some
insurance, many relate to times when the diocese does not appear to have had
insurance or the insurance is limited and not likely to cover the damages for
which the diocese might be found liable," Wall wrote. "Given the
financial circumstances of the diocese, I have come to the conclusion that the
only fair, equitable and merciful way to balance these obligations is by filing
a Chapter 11 reorganization."
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Merritt Selleck, a parishioner at St. John Vianney Church, told Catholic
News Service he was disappointed by the announcement but said it might be the
right step to take.
"I don't think the bishop had much of choice given the number of
lawsuits the diocese is facing," Selleck said.
The diocese of Gallup in northwestern New Mexico is the poorest diocese
in the United States, said Fr. Tim Farrell, diocesan spokesman, and includes
the Navajo, Hopi, Zuni and parts of the Apache Reservations.
The strategy, Wall wrote in his letter, will give the diocese the
opportunity to present a reorganization plan that provides for a fair and
equitable way to compensate those who were sexually abused as children by
church workers and ministers as well as anyone who has not yet come forward
with allegations of abuse but may do so in the future.
"I firmly believe that the process of Chapter 11 is the best and
only way that will allow us to work constructively with all those who suffered
from the sexual abuse," Wall said.
Wall could not be reached for comment. It has not been released as to
when the filing will occur or how much in damages the diocese is facing.
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