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Beginning of article

One Canadian Anglican diocese may declare

bankruptcy and a second is facing "grave" financial

difficulties as lawsuits over Native residential schools

progress through the courts.

The Diocese of Cariboo is considering declaring

bankruptcy after a judge recently found it negligent in the

sexual abuse of a boy at a Lytton, B.C., residential

school nearly 30 years ago. Floyd Mowatt sued the

diocese, the national church and the federal government

for damages as a result.

Justice Janice

Dillon of the B.C.

Supreme Court

found all three

parties jointly liable

for …