Posted on 12/06/2004 7:22:25 PM PST by Mike Fieschko
SPOKANE, Wash. - The Roman Catholic Diocese of Spokane filed for bankruptcy protection on Monday, saying it did not have the money to cover lawsuits alleging sexual abuse by clergy.Spokane is the third Catholic diocese to file for bankruptcy recently in the wake of the nationwide scandal involving sexual abuse by priests. Portland, Ore., and Tucson, Ariz., are the other two.
The diocese faces claims that already total some $77 million, and Chapter 11 bankruptcy is the best way to ensure that all victims are treated fairly and that the church continues its mission, Bishop William Skylstad said.
"Demands by plaintiffs continue to be beyond the ability of the diocese to meet," said Skylstad, who was just elected president of the U.S. Conference of Catholic Bishops.
In its filing, the diocese listed assets of $11.1 million and liabilities of $81.3 million — the vast majority being sexual abuse claims.
The filing means federal bankruptcy court will determine what assets can be used to pay claims and how much each victim will get.
Critics denounced the Spokane filing, saying Skylstad was trying to avoid a trial that would expose the lengths to which the church went to hide serial pedophiles.
"Everyone suffers when Skylstad chooses to protect his secrets and his image rather than show courage and compassion," said David Clohessy, national director for Survivors Network of those Abused by Priests.
The Spokane Diocese serves about 97,000 Catholics in eastern Washington through 81 parish churches.
According to court papers filed Monday, the diocese so far faces 19 lawsuits involving 58 alleged victims, dating from the 1950s to 1991. Nine priests and two other clergymen have been accused of sexual abuse in those lawsuits.
More than two dozen sexual abuse claims involve former priest Patrick O'Donnell, 62, who served in Spokane and Seattle until he was removed from ministry in 1986. He has acknowledged he sexually abused boys from the time he was in the seminary.
The filing means that any future settlement negotiations must be handled through bankruptcy court, said Shaun Cross, attorney for the diocese. The diocese has settled about six cases in the past week, Cross said.
That would be a Chapter 7 petition, which the petitioner would claim it does not have enough total assets to satisfy the judgments and secured creditors, then would sell everything and the payments to the victims and secured creditors would be set by the US Bankruptcy Court. Chapter 7 wipes out the legal entity.
I believe the Diocese of Spokane is saying arewould seeking bankruptcy protection in order to pay a settlement to the victims and not be totally wiped out financially, so that the diocese could in the future emerge as a viable entity. This also is supervised and approved by the Bankruptcy Court
I don't know the structure in Spokane, but in most places the parishes have some structural independence from the diocese. The buildings are owned by the diocese, but the "parish" itself is not. So, for example, if the diocese has to sell all the church buildings, the good folks at St. Elmo's could start meeting in a Ramada or some such, then accumulate $ to buy a building, etc. That being said, I think it's unlikely that court will liquidate all diocesan property. They are more likely to set up some sort of payment plan, giving victims pennies on the dollar for their claims.
Welcome to the Springtime of Vatican II in the Church of Love.
... The Company’s First Amended Joint Plan of Reorganization, as modified (the “Plan of Reorganization”), was confirmed by the United States Bankruptcy Court for the Northern District of Illinois ...
They did. Notice, it was 1986 when this 'guy' was terminated. That was 17 yrs ago! 58 cases from 1950 to 1990, means that the last one was was 14 yrs ago.
Only the Vatican and the Boyscouts have official stayed clear of homosexuals. Hence they have a problem. The problem is the constant rehashing of the same cases, many of which are dubious to straight out extortion, fed by the MSM and aided by no brainer Freepers.
More like the winter of Vatican II. A lot of conservative Catholics knew 40 years ago that this was a movement away the the Faith in order to be socially accepted and denounced it ever since, including myself.
The man who weds the spirit of the age becomes an early widower.
I think that the Catholic Church should sell all of its wordly assets, and preach from street corners and hold Mass in private homes.
my bad
The Church is still playing a shell game with pedophile presbyters. If you think this all ended in 1990, you are delusional.
Nobody should have had to endure what those abused children had to endure. The Church erred in not immediately dealing with the small minority of priests who abuse children.
But I fail to see how destroying the Church, and depriving the Catholics of Eastern Washington of their religion, would serve anyone. The abuse was not the fault of the Church; The abuse was the fault of imperfect people within the Church. They will not pay the price for this, but the innocent Catholics of the Diocese surely will.
Skylstad is a true disgrace. And a liberal to boot.
Is it possible that this case may have been filed in the name of:
Roman Catholic Diocese of Spokane LLC
Now that would be bizarro.
The pedophilia problem today is not being covered up, known maniacs have been thrown out of the Church.
If you have evidence to the contrary, please post it. Otherwise, we are not the ones who are delusional.
It's good that you are able to only think that, because I would hate to live in a world made by your short sightedness.
The sleep in the house secretaries at the church rectory was just too convenient in my eyes.
The obvious gay priest was just too obvious.
The good priests used to keep us away from the "Brothers".
Now, I made a good living selling to the Catholic Churches. But, I have stories that I will never tell. I'm ashamed. Didn't involve me, btw.
I don't think that Jesus would be impressed by the gold and riches of the Church. I have been a Catholic all my life, and never cared for the "Quest for Money" that is carried on by most pastors, working the aging widows of the parrish. I have seen plenty of it, and it is distasteful, to say the least.
It's a not for profit corporation (no shareholders). And no annual state franchise tax/licensingf fees either. But they still have a corporate liability shield.
Churches which are not for profits don't file or pay any federal income taxes either.
I'm sticking to the article. I'm of the opinion that many 'homosexuals' that ever got close the a Catholic Church is in for the easy money. Not counting all your various bigots, intent on destroying the Church. Just listen how they came down on Mel Gibson, and museums in NY presenting religious icons covered in urine and dung.
This ad naseum 'priest' bashing is all part of the same crap.
Date of Incorporation: 07/12/1915
Actually if nothing has been reduced to a judgement they may be in very good shape. Those claims would be unsecured leaving the secured creditors protected and the unsecured creditors S.O.L.
Of course there are always the cramdown provisions which can force terms on an uncooperative creditor.
It also depends on criminal charges. Criminal debt is not dischargable in Bankruptcy (much like child support). But there must be an ACTUAL criminal case with a order from that court.
If the church sets up a proper debtor in possession managment system, it should not be a problem IF (big IF) they properly disclose and explain EXACTLY what they are doing. Not that they have much choice in Bankruptcy court.
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