Bankruptcy filing to avert abuse trials
HAGATNA, Guam — Guam’s Catholic Church will file for bankruptcy — a move that will allow the archdiocese to avoid trial in dozens of lawsuits alleging child sexual abuse by priests and move toward settlements.
Archbishop Michael Byrnes announced Wednesday that mediation efforts that began in September led the church to bankruptcy.
“This path will bring the greatest measure of justice to the greatest number of victims,” Byrnes said.
He said the bankruptcy will provide “finality for victim survivors that they’ve been heard and understood.”
Attorney Leander James, who is working with accusers in Guam, said in a statement the move will help resolve current lawsuits from more than 180 claims of abuse through settlements.
“This bankruptcy filing will automatically stop any further action in the lawsuits that have been filed, and it will create a deadline for all Guam clergy abuse victims to file claims,” he said.
Guam attorney Anthony Perez, who is also representing victims, says the bankruptcy does not mean the archdiocese will be shuttered.
“Just because the archdiocese is filing for bankruptcy does not mean it will go out of business,” Perez said. “In my discussions with attorneys from my team with extensive experience in these types of bankruptcies, this filing will allow the archdiocese to reorganize and still be operational after the claims are paid and the bankruptcy is closed.”