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The Oregonian [Oregon]
July 12, 2005

Dogged by sexual-abuse lawsuits since 1997, the Diocese of Tucson, Ariz., in September became the second U.S. diocese to plunge into bankruptcy.

It soon will become the first to emerge.

U.S. Bankruptcy Judge James Marlar on Monday approved the diocese's plan to make $22.2 million available for settlements. Seventy-seven claims asserting sex abuse by priests have been approved or are pending.

Individual settlements will range from $100,000 to $600,000, depending on the circumstances of the case.

The key to the case has been the claimants' agreement to ignore the controversial issue of parish property ownership. In return for avoiding litigation that could drag on for five to 10 years, the claimants were able to negotiate a plan that would pay them promptly.

Also, unlike Portland and Spokane, the Tucson diocese will not have to worry about future claims filed by men and women who realize they've been abused but haven't yet connected the abuse to adult injuries such as emotional and mental problems. Instead, future claimants are restricted to minors whose parents or guardians haven't filed claims on their behalf or people who don't recall the abuse because of repressed memory.

SPOKANE

Facing nearly $76 million in sex-abuse claims, the Diocese of Spokane in December became the third -- and so far, last -- U.S. diocese to file for bankruptcy.

The diocese, which argues it holds millions of dollars' worth of property in trust for its parishes, likely will be the first to get a much-anticipated ruling on the property's true ownership. U.S. Bankruptcy Judge Patricia C. Williams heard arguments June 27 from a dozen lawyers, including Mark Chopko, general counsel for the U.S. Conference of Catholic Bishops, of which Spokane Bishop William S. Skylstad is president.

Williams said she would rule on the issue four to six weeks after the hearing. The ruling will decide whether parish assets are available to pay for as many as 129 unsettled sex-abuse claims lodged as of the date of the bankruptcy.

The Spokane bankruptcy has been rancorous from the beginning, not only over the property dispute, but also among the sex-abuse claimants. In response to protests over the makeup of a committee appointed to represent claimants in bankruptcy court, U.S. Trustee Ilene J. Lashinsky compromised by creating two committees: one for those who were litigating in court and one for those negotiating out of court.

Like Portland, Spokane has included a controversial category of future claimants who have not yet realized their childhood sexual abuse caused problems later in life. -- Steve Woodward