Milwaukee Archdiocese, victims fail to reach deal

Archdiocese filed for Chapter 11 bankruptcy protection

The Archdiocese of Milwaukee has failed to reach a settlement with victims of sexual abuse, sending both parties back to U.S. Bankruptcy Court.

The archdiocese and its creditors have been in court-ordered mediation since July 20. Most of the creditors are victims or alleged victims of sexual abuse by clergy or church workers.

Both sides confirmed Monday the settlement talks had failed. But they declined to elaborate, citing the confidentiality of the proceedings.

Victims’ attorney Jeffrey Anderson said the creditors would now move to force disclosure of documents under court seal.

Archbishop Jerome Listecki’s chief of staff told the Milwaukee Journal Sentinel the archdiocese remains hopeful a settlement might eventually be reached.

The archdiocese filed for Chapter 11 bankruptcy protection in January 2011 to deal with sex abuse claims.