Calif. Catholic Diocese Plans Bankruptcy Filing to block Sex Abuse Payouts
Pastor Dale Morgan
Feb 27, 11:32 PM EST
*Calif. Catholic Diocese Plans Bankruptcy Filing to block Sex Abuse Payouts*
By ALLISON HOFFMAN
Associated Press Writer
SAN DIEGO (AP) -- The Roman Catholic Diocese of San Diego said Tuesday
that it planned to file for bankruptcy protection to put off going to
trial in more than 140 lawsuits alleging sexual abuse by priests.
In a letter posted on the diocese's Web site, Bishop Robert Brom said
the diocese made its decision because any damages awarded early in a
trial could deplete "diocesan and insurance resources," leaving nothing
for other victims. He also noted the time the process could take.
Attorney Micheal Webb said the diocese planned to file for bankruptcy
protection by midnight, just hours before the first trial was scheduled
to go forward Wednesday in a San Diego courtroom. A Chapter 11 filing
automatically halts court proceedings.
San Diego would become the fifth U.S. diocese to file for bankruptcy
protection. It also would become the largest, with nearly 1 million
parishioners.
Brom said in his letter that the diocese would disclose the names of
accused priests who officials are certain participated in abuse, and "we
will verify that no known abuser is functioning in ministry."
Diocese officials and plaintiffs' attorneys failed to reach a settlement
during two days of negotiations, wrapped up Monday, in Los Angeles
Superior Court.
The diocese called plaintiffs' attorneys Tuesday morning to make a
"final and best" settlement offer, Webb said. He declined to specify how
much the church had offered but said it was higher than total
settlements reached in other U.S. dioceses.
"When they rejected it, we were left with no choice," Webb said.
Attorneys for the plaintiffs said the total amount the church had
offered was insufficient because San Diego has more plaintiffs than
other jurisdictions.
"It's meaningless," said attorney Andrea Leavitt.
They also accused the church of using bankruptcy as a way to keep
potentially embarrassing information under wraps. By delaying civil
trials, the filing prevents diocese officials from being confronted in
court with potentially embarrassing facts, missteps or documents related
to past handling of abusive priests.
"For three years they've told people they want to settle, they want to
be transparent, but the moment it became clear the truth will come out
through a jury trial, they sought to shut down victims' ability to get
compensated and get out the truth," said John Manly, an attorney
representing a victim scheduled for trial in April. "It's wrong, and
they're not going to get away with this."
A trial prompted by a woman's accusations that a priest forced her to
have sex in his parish office 1972, when she was 17, was scheduled to
begin Wednesday. Three other trials were scheduled to follow, involving
multiple victims and allegations that the diocese protected abusive
priests by moving them from parish to parish.
Plaintiffs with cases already released for trial may appeal for
permission to let those trials move ahead.
David Clohessy, national director of the Survivors Network of those
Abused by Priests, or SNAP, told reporters outside St. Joseph's
Cathedral in downtown San Diego that he and his local staff had been
fielding calls throughout the day from victims, some in tears, asking
about the bankruptcy.
"In all of these dioceses, the bishops claim that it's for the victims,
but it's not. It's for their own self-preservation," said Clohessy.
Diocese officials announced this month in a letter distributed to
parishioners that they were contemplating bankruptcy to put off going to
trial. The diocese retained an Arizona bankruptcy attorney who guided
the Tucson diocese through its filing, and Brom discussed the matter
with diocese priests at a regular pre-Lent meeting Feb. 19 in San Diego.
The diocese, which covers San Diego and Imperial counties, has 98
churches and runs 50 schools.
In addition to Tucson and San Diego, the dioceses that have filed for
bankruptcy were Portland, Ore., Spokane, Wash., and Davenport, Iowa.
Tucson has emerged from bankruptcy, while proposed settlements in
Spokane and Portland are awaiting final approval. Portland had been the
largest diocese to file for bankruptcy, with nearly 400,000 Catholics,
according to its Web site.
The Iowa diocese filed for bankruptcy just days before the civil trial
of a retired bishop from a neighboring diocese was set to begin. Fifteen
plaintiffs had come forward alleging abuse.
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Associated Press Religion Writer Rachel Zoll in New York contributed to
this report.