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84 N.C. L. Rev. 282 (2005-2006)
Chapter 11 Bankruptcy: A New Battleground in the Ongoing Conflict between Catholic Dioceses and Sex-Abuse Claimants

handle is hein.journals/nclr84 and id is 296 raw text is: Chapter 11 Bankruptcy: A New Battleground in the Ongoing Conflict Between Catholic Dioceses and Sex-Abuse Claimants INTRODUCTION ........................................... 283 I. CHAPTER 11 OF THE BANKRUPTCY CODE ............................... 288 A. Dioceses as Debtors, Sex-Abuse Claimants as Creditors.. 288 B. Policies of Chapter 11 ........................................................... 289 C. Protection and Control of the Diocesan Assets as Property of the Estate and by Operation of the A utom atic Stay ...................................................................... 291 D. The Dioceses' Exclusive Right to Propose an Initial Plan of Reorganization ......................................................... 293 E. Chapter 11 as an Equitable Process as Illustrated by the Analogous Mass Torts Bankruptcy Cases .......................... 295 1. Asbestos Bankruptcies: The Future Claimant as Introduced by In re Johns-Manville Corp .................... 296 2. Other Mass Torts Bankruptcies and Different Treatment of Future Claims .......................................... 299 3. The Relevance of the Mass Torts Bankruptcies to the Diocesan Bankruptcies ............................................ 300 II. THE GOOD FAITH TEST AS A TOOL FOR THE SEX-ABUSE CLAIMANTS AND AN OBSTACLE FOR THE DIOCESES ............ 304 A. Comparing Two Approaches to the Good Faith Test: In re Johns-Manville Corp. and In re SGL Carbon C orp ........................................................................................ 304 B. Applying the Good Faith Test to the Diocesan B ankruptcies .......................................................................... 309 III. PROPERTY OF THE ESTATE: THE DIOCESE-PARISH PROPERTY ISSUE ......................................................................... 315 A. Diocesan Property Under the Bankruptcy Code ............... 315 B. Diocesan Property Under Church Canon Law and State Corporate Law ............................................................. 318 IV. THE FIRST AMENDMENT IMPLICATIONS OF THE DIOCESE- PARISH PROPERTY ISSUE ........................................................... 322 A. Case Law: Ecclesiastical Abstention and Neutrality ......... 322 B. Application to the Diocesan Bankruptcies ......................... 326 C O N CLU SIO N ........................................................................................... 330

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