The Roman Catholic Diocese of San Diego said this weekend it is considering declaring bankruptcy to avoid going to trial on more than 140 lawsuits alleging sexual abuse by priests
A pastoral letter to parishioners, signed by Bishop Robert Brom, said if fair settlements cannot be reached with abuse victims, "the diocese may be forced to file a Chapter 11 reorganisation in bankruptcy court".
The diocese is concerned "that settlements not cripple the ability of the church to accomplish its mission and ministries," the letter said.
If the diocese files for bankruptcy, it would become the fifth in the nation to seek protection in the clergy sex abuse scandal. Under such bankruptcy, a court supervises the reorganisation of the diocese's contractual and debt obligations.
An attorney for the San Diego plaintiffs said the Chapter 11 filing "would be a sham and frivolous."
"We don't know if the threat of bankruptcy is a ploy to try and get the plaintiffs to settle for less money or if it's a stonewalling tactic," attorney Andrea Leavitt said. "What the public needs to know is this is a very rich diocese with over 500 pieces of property and a lot of insurance."
There are 154 plaintiffs in San Diego County alleging priest abuse, Ms Leavitt said. Bishop Brom had written 143 people had filed lawsuits against the diocese.
The first case is set for trial in Superior Court on February 28th, and three other trials are scheduled to follow, involving multiple victims and allegations that the diocese protected abusive priests by moving them from parish to parish.