Lawyers for the man, identified only as John Doe, said the archdiocese had provided false information in getting the man to agree to an $80,000 settlement in 2007.
Roman Catholic Archdiocese of Milwaukee
The mediation between the Milwaukee archdiocese and its creditors, most of them survivors of sexual abuse, ended Tuesday without a resolution.
The bankruptcy proceedings were placed on hold pending a decision by the 7th Circuit Court of Appeals related to nearly $60 million that was transferred to a trust fund shortly before the bankruptcy action was filed nearly four years ago.
The former Milwaukee archbishop was schedule to move to a Benedictine abbey in September, but the abbot rescinded the invitation because "he did not think it was a good time."
Lawyers have asked the appeals court to remove a judge's decision, saying that the concern was for "his endorsement of the religious faith."
The claimants' lawyers also asked the bankruptcy judge not to rule on the plan until an appeals court rules on the status of a hotly contested cemetery fund.
The Milwaukee archdiocese will walk away from bankruptcy relatively unscathed if its proposed reorganization plan is accepted by Judge Susan V. Kelley.
A bevy of appeals of decisions in the bankruptcy case as well as other federal and state lawsuits indicate the plan will not be the last word, however.