Boston Archdiocese Rumored to be Considering Bankruptcy
LEON HARRIS, CNN ANCHOR: As Boston's Catholic Archdiocese battles lawsuits from hundreds of alleged sexual abuse victims, there is a report that the church is now considering an unprecedented move: bankruptcy. Our Boston bureau chief, Bill Delaney, is following the story for us now. Let's go to him for the latest this morning. Hello -- Bill.</s>BILL DELANEY, CNN BOSTON BUREAU CHIEF: Hello, Leon. Well, these reports emerge, as they often do in this town on the subject of the Catholic Archdiocese, in "The Boston Globe," which is quoting yesterday in its edition, senior church officials as suggesting that the church might eventually file for bankruptcy, facing now many hundreds of sexual abuse claims that could eventually cost the church $100 million. Now, Leon, this is not the first time this sort of thing has been floated out there. Late last summer, there was talk of the church possibly filing for bankruptcy. Why would the church do it? Well, it would delay the entire process now of all of these hundreds of claimants against the church, set that back many, many, many, many months. It would end the mediation process that the church is now engaged in with some 40 attorneys and some 450 plaintiffs. Now, that would mean no more pretrial depositions for Cardinal Law and no more release of church documents, and it would lump all of these plaintiffs together in one group. That would make for a much more clinical process. Bankruptcy filing is a much more clinical process than the kind of civil process that's ongoing now. The great disadvantage, Leon, for the church, they would have to reveal, as never before, their finances. That's why many observers, just about all of the observers we've spoken to and most quoted in the media here, believe as one attorney put to it me just about a half-an- hour ago, who is involved in the mediation. He considers the chances of an actual bankruptcy filing very slim, if at all. He considers that what the church is really up to here is a ploy to try to move along the mediation process, and possibly even threaten the plaintiffs' attorneys, who know that in typical bankruptcy filings, plaintiffs' attorneys make lower fees than in civil cases. So, yes, this has been floated before, it's out there, whether it will happen or not -- a lot of skepticism here in Boston. If it did happen, Leon, not before January or February.</s>HARRIS: What does Cardinal Law say about it? Does he say whether or not he favors bankruptcy? Or has he not spoken on this?</s>DELANEY: Cardinal Law has not made a public statement on this. Naturally, anything coming out of the Catholic Archdiocese must have passed across the desk of Cardinal Law. Although others will tell you that there are many, many factions in the Catholic Archdiocese, and they don't always necessarily speak in harmony. And this could be one faction, however, with Cardinal Law's permission put this leak out to "The Boston Globe." It may not necessarily represent a large constituency necessarily, even in the archdiocese. It's very complicated. The Catholic Archdiocese, as one lawyer put it yesterday, let's face it, said, the Catholic Archdiocese here is a mess.</s>HARRIS: Interesting. Bill Delaney in Boston -- thanks, Bill. Have a good one. See you soon. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.