Judge Encourages mediation In Duluth Diocese Bankruptcy

A judge is encouraging mediation to resolve the Diocese of Duluth’s filing for bankruptcy protection.

Judge Robert Kressel encouraged the diocese and all parties involved _ including attorneys for sex abuse victims and insurers _ to work with a mediator. Kressel did not officially order mediation.

The diocese filed for Chapter 11 reorganization last Monday. The move comes a month after a jury awarded $8.1 million to a man who says he was molested by a priest in northern Minnesota in 1978. The diocese says it can’t afford its nearly $5 million share of the verdict.

Mike Finnegan is a St. Paul attorney for abuse victims who’ve filed lawsuits against the diocese. Finnegan tells Minnesota Public Radio News (http://bit.ly/1RLYKMv) ) mediation is a less costly way to work through litigation when numerous parties are involved.