Parishes hire lawyers after archdiocese bankruptcy
Published 10:07 am Monday, January 19, 2015
MINNEAPOLIS — Some Twin Cities-area parishes are fearful about their financial futures after the Archdiocese of St. Paul and Minneapolis filed for bankruptcy, and many have taken steps to protect themselves.
Facing the potential for more than 100 lawsuits stemming from allegations of clergy sexual abuse, the archdiocese filed a petition for Chapter 11 reorganization on Friday in U.S. Bankruptcy Court. Shortly after the filing, Archbishop John Nienstedt said parishes would not be affected by the move, which he said would allow the church to equitably compensate victims of clergy abuse and continue to carry out its mission.
Some parishes are worried, with some hiring attorneys.
“Many parishes have said, ‘We need a seat at the table so that we can protect our money,”’ said Don Grant, acting parish administrator at St. Olaf Catholic Church in downtown Minneapolis.
Mike Finnegan, a victims’ attorney, said individual parishes typically have not been sued in other bankruptcy cases, though some have been sued in bankruptcies in San Diego and Wilmington, Delaware. In both cases, the parishes employed priests who abused the children and had insurance coverage, he said.
Denny Farrell, parish administrator at Guardian Angels of Oakdale, said his parish has hired a bankruptcy attorney, even though it hasn’t employed any priest found to have been credibly accused.
“It’s just to make sure we are doing everything we can to protect Guardian Angels now,” Farrell said.
The parish owns 23 acres of land, including a cemetery. He also said his church doesn’t owe the archdiocese any money, but other parishes do and might be called upon to pay their debts.
Meanwhile, area Catholics are taking the news with a mix of reflection, support and skepticism.
Amy Holtan, who lives in Maple Grove, kept the news within the framework of her faith.
“We have sinners who lead the church: We’re all sinners,” said Holtan, who attended St. Olaf shortly after the bankruptcy announcement. “But where sin abounds, grace abounds all the more. God is in the midst of this.”
Other Catholics, like Mary Schrankler of Woodbury, took a different view.
“We need to understand better why this decision was made now,” Schrankler said. “Was it in the best interest of the people abused, or in the best interest of the archdiocese?”