PORTLAND, Ore. — The Roman Catholic Archdiocese of Portland announced it is filing for Chapter 11 bankruptcy protection rather than proceeding with a priest-abuse trial scheduled to begin the same day.
It is the first time an American Catholic archdiocese has ever sought bankruptcy protection.
Archbishop John G. Vlazny said he attempted to seek a reasonable settlement in the case and another that was prepared to go to trial if the first one was settled. But Vlazny said he could not risk going to trial because the suit sought $130 million in damages.
“This is not an effort to avoid responsibility. It is in fact the only way I can assure that other claimants can be offered fair compensation,” Vlazny said in a prepared statement.
The archdiocese and its insurers already have spent more than $53 million to settle more than 100 claims of priest abuse, the second-highest settlement figure in the nation.
Filing for bankruptcy automatically puts a halt to any trials. All of the remaining lawsuits — more than 60 — will go under the control of a bankruptcy judge.
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