The Diocese of Davenport files for bankruptcy

The Catholic Diocese of Davenport filed for bankruptcy protection Tuesday afternoon, effectively putting 25 claims of sexual abuse by priests in the hands of a judge.

“I and the leadership of the diocese believe that, as difficult as this decision is, it provides the best opportunity for healing and for the just and fair compensation of those who have suffered sexual abuse by clergy in our diocese, those who have come forward and those who have not yet decided to come forward,” Bishop William Franklin said in a news release issued late Tuesday afternoon.

Just before 5 p.m., diocese representatives also filed papers seeking protection from creditors under Chapter 11 of U.S. Bankruptcy Code. The documents were filed in the U.S. Bankruptcy Court of the Southern District of Iowa. Franklin said a reorganization plan also will be filed for consideration by creditors and the court.

“I have searched for ways to adequately respond to the 25 outstanding claims of sexual abuse against Monsignor Thomas Feeney, William F. Wiebler and Monsignor Carl H. Meinberg and retired Bishop Lawrence D. Soens, all of which occurred 30 to 40 years ago,” Franklin said. “Because the settlement demands are greater than the available assets of the diocese, we cannot continue on our present path.”

Franklin said he made the decision after consulting with the Diocese of Davenport Corporate Board and Finance Council, the College of Consultors, diocesan directors and diocese attorneys.

Spokesman Deacon David Montgomery said the bankruptcy does not affect any of the parishes or schools within the diocese.

“Each is separately incorporated,” he said. “We won’t know about its effects on employees until a reorganization plan has been drawn up and approved by the creditors and court.”

One of the major under-the-radar sexual abuse stories is the matter of the lawsuits filed against retired Bishop of Sioux City Lawrence Soens. Soens is accused of abuse during his tenure as principal of Regina High School in Iowa City in the early 1960’s.  Trials related to the charges were schedule to begin on October 23, but the story above indicates that the bankruptcy filing might change that. Here are documents filed in the lawsuit, including many sworn statements from students at Regina during that time as well as excerpts from Soens’ depositions in which he admits to some behavior, denies some and says he can’t remember some.