Judge Rules on Archdiocese's Objection to Claims

Summary of Today’s Court Proceedings:

Bankruptcy Judge Susan Kelley heard arguments today on the Archdiocese of Milwaukee’s objection to three abuse survivor claims that were filed in its Chapter 11 proceeding.  The court considered objections to all of the claims on the basis that any negligence or fraud claims are barred by the applicable statutes of limitation.  The archdiocese also objected to one claim on the additional ground that the claimant had already entered into a settlement with the archdiocese in a voluntary mediation proceeding.

The judge ruled that the claimants could no longer bring a negligence claim against the archdiocese.  It also found that the claimant seeking to upset a prior settlement failed to meet the high standard under Wisconsin law to upset the settlement and disallowed the claim.  The judge determined that the question of whether the fraud claims should be dismissed on statute of limitations grounds needed to be considered in further proceedings that would determine the factual issues.

The arguments before Judge Kelley were very complex and the archdiocese is appreciative that she moved the case along and decided the motions so promptly.  The archdiocese is hopeful that it will be able to use the decisions to assist the parties in the negotiation of a plan of reorganization, and to move the Chapter 11 proceeding closer to resolution.