BishopAccountability.org
	Spokane Diocese Bankruptcy Hearing Held on Victims Fund By Nicholas K. Geranios The Associated Press, carried in Seattle Post-Intelligencer [Spokane WA] June 28, 2005 SPOKANE -- More than a dozen lawyers argued yesterday over the size of the money pot that will be available to alleged victims of sexual abuse by Roman Catholic priests in the Spokane Diocese. The lengthy hearing in U.S. Bankruptcy Court will produce a key decision in the case of the Catholic Diocese of Spokane, which filed for Chapter 11 bankruptcy protection because of the large number of abuse lawsuits it faces. U.S. Bankruptcy Judge Patricia Williams said she will rule in the next four to six weeks whether some of the 82 parish churches, 16 parochial schools and other assets in the Eastern Washington diocese could be sold to settle lawsuits. The Spokane Diocese contends that the Catholic bishop does not own the parish assets, but only holds them in trust for parishioners. Lawyers for the victims disagree. While questioning diocese lawyer Shaun Cross, Williams said her reading of state law seems to indicate the diocese owns the parishes. "It sure sounds to me like the diocese is the beneficiary of the trust," Williams said at the end of an 8 1/2-hour hearing, in a courtroom packed with lawyers, abuse victims and Catholic officials. The judge's decision will be closely watched around the country, especially in Tucson, Ariz., and Portland, where Catholic dioceses have also sought bankruptcy protection. Spokane Bishop William Skylstad has contended that he controls only a few assets, such as the chancery building, which are worth about $10 million.