Sex Abuse Allegations Drive Calif. Diocese To Ch. 11

Law360, New York (January 14, 2014, 6:40 PM EST) -- The Catholic Diocese of Stockton, Calif. will enter Chapter 11 bankruptcy on Wednesday after failing to come up with an alternative way to handle the costs associated with allegations of sexual abuse by priests, Bishop Stephen E. Blaire said Monday.

The diocese has racked up more than $14 million in legal costs tied to sexual abuse claims over the last 20 years, Blaire said in a statement. While the diocese, known legally as the Roman Catholic Bishop of Stockton, has enough money to fund normal operations,...
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