Texas mission diocese declares bankruptcy to settle abuse claims filed under New Mexico lookback law

(OSV News) -- The Diocese of El Paso, Texas, filed for bankruptcy March 6, citing financial strain from claims related to sexual abuse alleged to have occurred decades earlier.

The Chapter 11 filing was triggered by lookback laws in the adjacent state of New Mexico, in former diocesan territory that is now part of the Diocese of Las Cruces.

The case, brought before the U.S. Bankruptcy Court in El Paso, involves 12 suits brought by 18 claimants who say they were "sexually abused as minors between 1956 and 1982 in southern New Mexico," explained El Paso Bishop Mark J. Seitz in a video statement released in both English and Spanish March 6 and posted to the diocesan website.

In his video statement, Bishop Seitz said he took the decision to file for bankruptcy following prayer, discernment and consultation, "as the financial claims against the diocese far exceed our financial means."

He said the Chapter 11 filing was aimed at achieving two goals -- "to equitably compensate those who have been harmed, and to carry on the essential ministries of the Church in our diocese, so we can continue to meet the news of all who rely upon the Church."

Bishop Seitz also stressed that the filing applies only to the diocese itself, and not to its separately incorporated parishes, schools and affiliated Catholic entities, such the diocesan Catholic Charities foundation.

He also noted that lawyers for the dioceses had already met with survivors and their attorneys ahead of the bankruptcy petition, and had "reached resolution on many issues already" due to "several candid, transparent and fruitful meetings."

The bishop said in court documents that despite encompassing a major metropolitan area, the Diocese of El Paso's territory is "geographically vast, rural, and poor."

"Many communities within these counties experience poverty rates well above national averages, and socioeconomic challenges affect parish life throughout the region," said Bishop Seitz in his court declaration.

He also noted the impact of "overall demographic shifts" -- including aging longtime parishioners and migration patterns along the U.S.-Mexico border -- on parish registration numbers and financial support.

Because of its lack of financial resources, the Diocese of El Paso is classified as a mission diocese, which requires sustained aid to deliver basic pastoral services to the faithful. The U.S. Conference of Catholic Bishops takes up an annual collection, typically in April, to support home mission dioceses.

Yet even with that aid -- with grants ranging from $2.5-4.5 million annually -- the Diocese of El Paso is still unable "to address our structural deficit or the unprecedented legal costs we face now," Bishop Seitz said in his court declaration.

The diocese has experienced net losses ranging from almost $387,000 to more than $1.6 million over the past three fiscal years, he said.

In its filing, the diocese stressed it was not seeking to avoid its responsibilities to claimants, noting it had released a list of credibly accused clergy after undertaking a comprehensive 2019 review of priests and religious who had served since 1950, regardless of the change in diocesan boundaries prior to and after the Diocese of Las Cruces' creation in 1982.

The review had yielded 30 out of 1,000 priests and religious deemed to have credible accusations. The diocese "has not received any credible reports of clergy abuse of a minor in which the abuse is alleged to have occurred after 1998," according to the filing.

"Some of you may feel disheartened, frustrated or angry at the allegations that some clergy, called to proclaim the Good News of Jesus Christ and administer the sacraments, instead chose to harm the children in their pastoral care," said Bishop Seitz in his video statement.

He added, "I too share those emotions and have often wondered how individuals committed to caring for God's people could have done such things."

"As your bishop, I apologize to abuse survivors for the harm, pain and suffering they experienced and continue to experience in their lives," said Bishops Seitz. "It is my prayer that through this process, we can reconcile with each other and walk together toward the loving presence of Jesus Christ in our midst."

Admitting a "difficult journey" ahead, he added, "We will continue to serve the Lord with all our hearts, through whatever trials may come."