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  Hearing on Sex Abuse Settlement Postponed
Both Sides' Lawyers Critical of Insurer for Not Paying up

By Jim Hannah
Cincinnati Enquirer [Burlington KY]
June 23, 2005

BURLINGTON - The architects of a proposed settlement in the nation's first class-action lawsuit alleging priest sexual abuse must wait a little longer to get a court's approval.

A hearing in Boone Circuit Court seeking preliminary approval has been moved to July 5. It was previously scheduled for today.

After expressing concerns about an earlier draft of the settlement, Senior Judge John Potter has asked lawyers to return with a proposal that makes it clear to victims that $80 million of the record-breaking $120 million settlement is contingent on the diocese winning a federal lawsuit against its insurance carriers.

The class-action suit, filed in 2003, accuses the diocese of a 50-year coverup of sexual abuse by priests and other employees. It is unclear how many people are part of the class action, but Potter has ordered a "census" to be conducted to determine the exact number of victims who will come forward.

Stan Chesley, the lead counsel for the plaintiffs, told The Enquirer's editorial board Wednesday that he was working to address all the judge's concerns.

"This is real," Chesley said, referring to the proposed settlement.

"This is real stuff, and we want to get it done."

Covington Diocese attorney Carrie Huff told the editorial board that she is concerned that victims will not come forward because they incorrectly think that the settlement is in jeopardy. She said Bishop Roger Foys, who came to the diocese in May 2002, wants to settle all outstanding allegations.

"Bishop Foys was personally involved in each of the major settlement meetings and followed all the negotiations closely, on almost a daily basis," she said. "He has devoted a significant portion of his life over the past year to seeing this through and making sure it was handled in a way that is consistent with his pastoral goals."

Chesley and Huff continued their criticism of a church self-insurance program for balking at contributing to the settlement.

Chesley said the insurer, Catholic Mutual, was not telling the truth when it released a statement this month claiming that it was not included in settlement talks.

"Anyone from Catholic Mutual who is saying that it was excluded from the negotiations is either badly misinformed or deliberately not telling the truth," he said.

Calls to Omaha-based Catholic Mutual were not returned.