Duluth Diocese in Bankruptcy After $4.8 Million Abuse Award

The Roman Catholic Diocese of Duluth, Minn., filed for Chapter 11 bankruptcy protection on Monday after being ordered to pay $4.8 million to a man who was molested by a local priest in the 1970s, reports The Wall Street Journal.

The diocese, which had a budget of $3.3 million last year, is facing 12 additional claims of clergy sexual abuse and six lawsuits. The bankruptcy filing temporarily freezes all litigation, allowing the church organization to continue operating while coming up with a plan to compensate abuse victims.

A jury last month awarded $8.4 million to the victim in the 1970s case, with the diocese held liable for $4.8 million. The Oblates of Mary Immaculate, the Catholic order of the priest involved in the case, was ordered to pay the rest. The Duluth diocese contends it knew nothing about the abuse and could not have prevented it. It is the 15th diocese or order to file for bankruptcy while addressing claims of sexual abuse by clergy.