JS: First Amendment no protection for Milwaukee Archdiocese cemetery funds

Taking funds the Archdiocese of Milwaukee set aside for cemetery operations to help settle its bankruptcy debts would not hinder its free exercise of religion under the First Amendment and a 1993 federal law aimed at protecting religious freedom, U.S. Bankruptcy Judge Susan V. Kelley said in a hearing Friday.

Kelley's opinion, which is expected to be filed early next week, is a victory for sex-abuse victims and other creditors working to expand the archdiocese's bankruptcy estate - the pool of money used to fund settlements and the church's reorganization.

But it could be short-lived.

Lawyers for the creditors committee and the archdiocese's cemetery trust have agreed to seek a separate decision from the U.S. District Court in a procedural move that reduces Kelley's findings from a final order to essentially recommendations - a development that appeared to blindside and anger the judge.

"I have hundreds of other bankruptcy cases I put on hold to decide this," Kelley said, rebuking the lawyers midway through a 2 1/2 -hour hearing.

"My idea was to get this case on a faster track, to get this settled, and I don't think this advances that ball at all."

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