Mediator named in Delaware Catholic abuse claims

WILMINGTON, Delaware (Reuters) - A Delaware bankruptcy judge has been appointed to mediate settlement talks between a bankrupt U.S. Roman Catholic diocese and alleged victims of sexual abuse by priests, court papers showed.

Judge Kevin Gross was appointed to mediate the talks between the Diocese of Wilmington and the more than 100 alleged victims of abuse in a move Judge Christopher Sontchi, who is in charge of the diocese's bankruptcy case, said in a letter on Monday was supported by all parties.

The diocese and alleged victims appeared to be nearing a plan to settle the abuse claims in recent weeks. However, at a meeting the parties recently failed to agree on a mediator and procedures for settlement talks, requiring Sontchi to step in.

The diocese filed for bankruptcy last year to head off the start of civil trials in state court stemming from allegations of abuse dating as far back as the 1950s.

"At this time, I am not ordering any party to participate in mediation. Nonetheless, I strongly encourage all the recipients of this letter to do so," Sontchi said, adding that he had asked Gross to report to him in 30 days.

"I believe that a global mediation, i.e. a negotiation among all the parties on all the outstanding issues, is the most likely path to a speedy and just resolution of this bankruptcy case," he said.

U.S. Roman Catholic archdioceses have collectively paid some $2 billion in settlements to victims since the priest sex scandals first erupted in Boston some eight years ago.

An attorney for the diocese did not immediately return a call for comment.

The case is: Catholic Diocese of Wilmington, U.S. Bankruptcy Court for the District of Delaware, No. 09-13560.

(Reporting by Tom Hals and Santosh Nadgir in Bangalore)