Duluth Catholic diocese latest to go bankrupt over abuse payouts

The Roman Catholic Diocese of Duluth, Minnesota, filed for bankruptcy protection in December following a jury verdict that held the diocese responsible for more than half of an $8.1 million judgment on behalf of a survivor of sexual abuse by a priest.

The Chapter 11 filing December 7 made Duluth the 13th of nearly 200 U.S. Catholic dioceses to file for bankruptcy since 2004 because of the clergy sexual abuse scandals. Regional organizations of two religious orders have also sought bankruptcy protection.

The Duluth award was one of the highest single monetary compensations for a survivor of clergy abuse, experts said. It was made possible by a Minnesota law that lifted the statute of limitations on civil claims for sexual abuse.