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  Nuns' Costs Could Rise Because of Bankruptcy
The Sisters Lease Land for Their Convent from the Diocese of Davenport

By Shirley Ragsdale
Des Moines Register [Davenport IA]
October 28, 2006

http://desmoinesregister.com/apps/pbcs.dll/article?AID=/20061028/LIFE05/610280334/1045

An unintended consequence of the Diocese of Davenport's bankruptcy is that the Catholic sisters who live next door to the chancery may have to pay more to lease the land on which their convent was built.

The Congregation of the Humility of Mary has filed papers in federal bankruptcy court stating that it has an interest in the outcome of the diocese's bankruptcy.

The congregation's Davenport convent at 820 W. Central Park Ave. was built in 1982 "on land leased from the Davenport Diocese," according to Lisa Bellomy, communications director for the community.

The sisters have a 99-year lease on the lot for their Humility of Mary Center, according to Richard Davidson, attorney for the diocese.

The diocese filed for Chapter 11 bankruptcy protection Oct. 10, stating it was the only way it could equitably compensate the dozens of individuals who have claimed they were sexually abused by diocesan priests.

"The diocese was financially overwhelmed," Davidson said. "We have few other creditors, our bills are up to date, there are no loans and very few trade creditors. The bankruptcy was necessitated by the abuse claimants."

Although the sisters have been reassured that they are in no danger of being kicked out of their convent, the bankruptcy "causes concern," Bellomy said.

Craig Levien, an attorney for those claiming abuse, said that the sisters' lease will have to be renegotiated at fair market value, "not special treatment or favors."

"This is just one of the examples how the diocese loses control of its financial matters when it puts its future in the hands of the bankruptcy court," Levien said.

However, Rand Wonio, the Davenport attorney who has represented the diocese in all of the civil lawsuits, has another take on the convent's lease.

"In my view, the lease is an enforceable contract and an asset of the bankruptcy," Wonio said. "Renegotiating it is not in the picture, although I can see where Mr. Levien might wish it were so."

Marty Rowlet, the Cedar Rapids attorney representing the nuns in the filing, declined to comment.

In other action, U.S. Bankruptcy Judge Lee Jackwig has ruled that the names of people who have alleged they were sexually abused by Davenport diocesan priests may remain secret throughout the bankruptcy proceedings.

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