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  Four Object to Tucson Diocese's Requested Cap for Sex-Abuse Claims

Arizona Daily Sun [Tucson AZ]
May 16, 2005

TUCSON (AP) -- Four objections have been submitted to a bankruptcy court considering a request by the Roman Catholic Diocese of Tucson to cap its payout for sex-abuse claims at $20 million.

The objections are in response to the diocese's proposal that would make initial payments to alleged abuse victims that would range from $100,000 to $600,000, depending on the severity of the abuse, according to court records.

The deadline to file an objection with the court was Friday.

Critics say the cap falls short of compensating victims whose claims are substantiated.

The diocese maintains it doesn't have enough money to pay all claims and that the bankruptcy reorganization is the only way to pay off plaintiffs and other creditors fairly while preserving the diocese.

The diocese listed $16.6 million in assets and $20.7 million in liabilities when it filed for bankruptcy protection, not including parishes.

Minus the $5.5 million the diocese has proposed setting aside for unknown future claims, the $14.5 million remaining cap wouldn't go far, attorneys for the alleged sex-abuse victims have said. It would amount to an average $145,000 each if 100 claims were found to be valid.

A hearing on the objections was scheduled for Thursday.

The bankruptcy court has logged 103 abuse claims against the diocese, which in September became the second in the country to file for Chapter 11 reorganization protection in the face of litigation stemming from alleged sexual abuse by priests.

The proposed cap would allow the diocese to keep any amount over $20 million that is raised to pay abuse claims, including contributions from parishes and money recovered from insurers under liability insurance policies or settlements.

In its April 25 filing, the diocese said that of the 103 sex-abuse claims, 36 appeared to be invalid on their face; nine were filed by parents of alleged victims; and 32 appeared plausible but require more information or appear to be barred by the statute of limitations.