The Catholic Diocese of Wilmington's state reorganization plan after filing for Chapter 11 bankruptcy recently got a shot in the arm by a bankruptcy judge.According to The Associated Press, Judge Christopher Sontchi ordered the insurance companies responsible for $15.4 million of the $77 million settlement to pay their shareas the diocese attempts to reorganize under Chapter 11 bankruptcy law.
"While I understand the legal arguments of the insurers, I think it's one of the clearest examples I've seen in my career of someone exerting form over substance,'' Sontchi told the news source. "Frankly, it's the kind of thing that lawyers do that makes nonlawyers have the opinion they do of lawyers.''
A previous report from the AP had the insurers balking at paying the $15.4 million until the appeals by the priests accused of misconduct were all sorted out.
The $77.4 million settlement will cover 150 alleged victims of sexual abuse at the hands of priests affiliated with the the Catholic Diocese of Wilmington.
Under the plan, the Catholic Diocese Foundation would provide $54 million toward that total.