Judge considers diocese bankruptcy appeal
By Peter MacArthur
he judge presiding over the Catholic Diocese of Wilmington's bankruptcy is being asked to stop alleged
victims of priest sex abuse from going to trial against its parishes.
The judge heard several hours of testimony Monday before adjourning the hearing
until Friday.
As a bankruptcy debtor, the diocese is subject to an automatic halt on litigation
against it. But it also wants a restraining
order for lawsuits against the parishes, arguing that the diocese is the real defendant
and would have to divert resources and key personnel to the trials.
The diocese also says insurance payments for the trials will reduce the amount of
insurance available to its bankruptcy estate.
Victims' lawyers argue that the diocese has not met the criteria for a restraining
order.
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