Ruling allows victims to sue archdiocese over millions transferred to parishes

“A U.S. bankruptcy judge in Albuquerque has ruled that lawyers for clergy sex abuse survivors can file lawsuits alleging the Archdiocese of Santa Fe fraudulently transferred an estimated $150 million in assets to parishes in an attempt to avoid bigger payouts to victims.

“The decision by Judge David T. Thuma in the Chapter 11 reorganization case opens the door to what could be a multimillion-dollar boon to hundreds of alleged victims. Or it could set off protracted, costly legal appeals that would tap funds that could have paid valid abuse claims.

“Lawyers for the 94 archdiocese parishes, several of which predate the archdiocese by many decades or even centuries, predicted at a court hearing in August that the “decimation” of certain parishes would result if the lawsuits into the transfers go forward.”

By Colleen Heild, Albuquerque Journal — Read more …

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