ST. PAUL, Minn. _ Attorneys representing clergy abuse victims announced a $210 million settlement Thursday in the protracted Twin Cities archdiocese bankruptcy case, calling it the largest ever. More than 400 victims will share in the proceeds.
In a news conference Thursday afternoon, St. Paul attorney Jeff Anderson called the settlement "a story of trauma and triumph and the pursuit of truth and accountability." He appeared to tear up and said, "feelings overwhelming me in this moment."
The Archdiocese of St. Paul and Minneapolis sought bankruptcy protection in 2015, citing the expected costs of settling abuse cases. Hopes for a quick settlement evaporated as attorneys for victims and lawyers battled over the amount and which church entities could be tapped for it. Only Milwaukee's legal fight lasted longer.
The archdiocese will pay $40 million of the settlement amount, and church insurers will pay $170 million, Anderson said. Attorneys fees have yet to be negotiated.
He said he hopes to get money to survivors by the end of the year. Money won't be evenly split, he said. Creditors panel will allocate the money.
Jim Keenan, a clergy abuse survivor who chaired a creditors' committee, said the church now "has to listen to victims" and that's bigger than the $210 million settlement.
Attorneys representing clergy abuse victims announced a $210 million settlement in the protracted Twin Cities archdiocese bankruptcy case, calling it the largest ever. More than 400 victims will share in the proceeds.
Anderson said the Minnesota Child Victims Act of 2013 opened doors to the settlement by allowing a three-year period for lawsuits to be filed in cases of clergy abuse dating back years, in some cases decades.
As a result of those, he said, the archdiocese has listed 91 clergy members credibly accused of sexual abuse. Top church officials have had to give sworn statements about their handling of clergy sex abuse complaints. Anderson called Vicar General Kevin McDonough "the manager of this problem."
The protracted bankruptcy has provoked the consternation of both victims and the church. Victims have been angry with the church _ first for the abuse and cover-up, then through the protracted bankruptcy.
Archdiocese leaders have been concerned that a massive settlement compromise the church's ability to carry out the missions of youth education, support for the poor and pastoral care among the Twin Cities' estimated 800,000 Catholics.
Legal fees for victims, usually about one-third of a settlement, could hit $40 million, U.S. Bankruptcy Judge Robert Kressel wrote in a recent memo.
As recently as March, the Minnesota bankruptcy case showed no indications of approaching conclusion. Kressel ordered the sides back to mediation in December after rejecting a reorganization plan.
Since the claim was filed, Kressel said at least seven survivors had died and more were in the 70s and 80s.
Four of Minnesota's six Catholic dioceses have filed for Chapter 11 bankruptcy protection.
Nationally, 15 dioceses and archdioceses have declared bankruptcy in recent years, according to Bishops Accountability, a database tracking clergy abuse. Only the Milwaukee diocese's case lasted more than four years; San Diego wrapped things up in seven months. Observers have said most cases settled within a year or two.
Two months ago, Anderson announced a $25 million settlement with the Phoenix-based Crosier order. The order settled with victims of abuse that occurred mostly in the 1960s and 1980s.
