Settlement in diocese bankruptcy dispute

WILMINGTON, Del. - November 6, 2009 -- The Catholic Diocese of Wilmington has reached a settlement in its bankruptcy case in a dispute over whether alleged victims of priest sex abuse could proceed with trials against its parish co-defendants.

The settlement was announced Friday after attorneys met behind closed doors before the resumption of a hearing on the diocese's request to halt the trials.

Attorneys for the victims have agreed not to proceed with trials in eight lawsuits alleging abuse by former priest and convicted pedophile Francis DeLuca.

In return, the diocese has agreed to turn over files on several other suspected priest abusers that it had previously withheld in other lawsuits. The diocese also agreed turn over details of its insurance policies to attorneys for the victims.

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