Friday, July 15, 2011

Bankruptcy judge rejects request for depositions of Weakland, Sklba

The judge in the Archdiocese of Milwaukee bankruptcy case on Friday rejected a move by lawyers for clergy sex abuse victims and other creditors to depose key witnesses, including retired Archbishop Rembert Weakland and Bishop Richard Sklba, in state court.

But Bankruptcy Judge Susan V. Kelley left the door open for those witnesses and others to be questioned under comparable federal bankruptcy rules.

"No disrespect to the state courts, but we're in bankruptcy court now," said Kelley, who initially challenged the creditors committee's standing to file the motion to lift the stay that has blocked depositions in the underlying fraud cases against the archdiocese.

Lawyers for the archdiocese and victims and creditors will return to Kelley's courtroom Aug. 12 to argue their positions under the federal rules.

Creditors' attorneys argued Friday that depositions of elderly or infirm witnesses, including anyone over age 75, are needed to preserve evidence in the underlying cases. That evidence would be used as part of the bankruptcy to determine the credibility of claims and size of the bankruptcy estate and settlement with creditors, said creditor committee attorney Gillian Brown.

Attorneys for the archdiocese argued that there's no evidence to suggest any of the witnesses are at risk of dying or that memories are fading, and that depositions at this early juncture would prejudice yet unidentified victims.
continue at MJS