Note 8 Accrued Mediation and Litigation Settlements (pages 13-14) repeats that
In January 2004, the Archdiocese established an independent mediation system to address reports of diocesan clergy sexual abuse of minors.
As I've said before, usually mediators are selected by agreement of the parties to the dispute. By setting up a mediation system on its own, our Archdiocese made the selection of mediators independent in the sense of being independent of the people claiming abuse. As I read the figures, mediation and litigation settlements, and therapy and other victim assistance expense were:
2007 paid: $5,688,169
2008 paid: $917,486
2007 accrued: $1,807,978
2008 accrued: $1,090,092
The Note goes on,
The Archdiocese currently is a defendant in seven Wisconsin lawsuits alleging personal injuries.
This omits that the cases allege fraud on the part of our Archdiocese, see Lawyer releases deposition by Weakland in fraud case.
Management has not accrued any additional expense in connection with these cases as management intends to vigorously defend the claims
Sounds expensive, and how expensive isn't estimated in this report.
and the outcome is uncertain.
Maybe financial statement jargon has changed. It might reassure someone to read that fraud cases against the Archdiocese are considered by it to be "without merit" as opposed to "the outcome is uncertain". From the facts available and what I see in the Wisonsin Civil Jury Instructions, I don't see how the plaintiffs in these cases can prove all the elements of a claim for on misrepresentation. If I'm right on that, then I'd expect to see the defense bring motions for summary judgment. If, however, the Archdiocese can't get the cases dismissed short of trial, then I'd expect the Archdiocese to file for bankruptcy.