Two survivors file lawsuits naming Diocese of St. Cloud for sexual abuse by Fr. Donald Rider

Charles Linneman, Chair, Official Committee of Unsecured Creditors Michael Finnegan, Counsel for Certain Abuse Survivors

The settlement the Archdiocese reached with the Creditors’ Committee on July 17 incorporated a claims classification review process that was and is still ongoing.  When the mediation settlement was reached, it included descriptions of different claims classifications for the various claims filed in the Chapter 11 proceeding.  The settlement allowed for a protocol for the Committee and lawyers for individual claimants to review the initial classification of any claim and to address any concerns to the Archdiocese, which has fully cooperated to review and examine each and every concern raised under the terms of the settlement agreement.

Attempting to remain true to the settlement agreed to in mediation, after a thorough claims review process, where the Archdiocese is working together with the Committee and the individual lawyers, many more claimants have been and will be moved into different classifications where they will now receive more or some form of compensation under the Plan.

The final class of claims receiving no monetary compensation is limited to the following categories of claims:

  • Claims previously settled through mediation or prior litigation (over half of the class)
  • Claims filed which are really duplicates of claims already filed
  • Claims from survivors alleging abuse by priests not associated with the Milwaukee diocese
  • Claims that do not involve sexual abuse of a minor
  • Claims which were withdrawn

We are satisfied with the work that has been and is being done in the claims review process and believe that we should continue to move forward in this bankruptcy.