Thursday, September 08, 2005

Church bankruptcy holdings

“By ruling that parish property should be included in the estate of a bankruptcy, Judge Patricia Williams of the Eastern District of Washington Bankruptcy Court also laid down an important marker on just what the legal structure & financial responsibility of the Catholic Church is in America, “ an article on Law.com said last week.

“As part of an adversary motion for summary judgment filed by a committee of tort litigants, Williams ruled last Friday that the parish property should be included, rejecting arguments that, as leader of a parish, Spokane Bishop William Skylstad held church property in trust for individual parishes. Williams wrote that “the named beneficiary is the diocese itself, and the bishop, in his official capacity, hold the property in trust for the debtor diocese.”

Cases are posted on the Eastern District’s website

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