MILWAUKEE (WTAQ) - The Milwaukee Catholic Archdiocese scored a major victory Tuesday in its bankruptcy court case.
Federal Judge Rudolph Randa decided that over $50 million in a church trust fund for Catholic cemetery maintenance cannot be used to pay creditors. That’s means the victims of sex abuse by priests in the archdiocese have no legal claim to the cemetery funds.
Their attorneys have accused the church of piling money into the six-year-old cemetery trust, so it’s not exposed to liability in the sex abuse payments.
Meanwhile, another big legal question is pending in the bankruptcy case.
Randa is expected to decide soon whether the church’s insurance company can cover damages in at least some of the sex abuse claims filed after the church declared bankruptcy in 2011.