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  Diocese Files Chapter 11
Bankruptcy Only Option in Face of Abuse Lawsuits, San Diego Bishop Says

The Associated Press, carried in Orange County Register
February 28, 2007

http://www.ocregister.com/ocregister/news/state/article_1593035.php

San Diego -- The Roman Catholic Diocese of San Diego said Tuesday that it planned to file for bankruptcy protection to put off going to trial in more than 140 civil lawsuits alleging sexual abuse by priests.

In a letter posted on the diocese's Web site, Bishop Robert Brom wrote that the diocese had "decided against litigating our cases because of the length of time the process could take and, more importantly, because early trial judgments in favor of some victims could so deplete diocesan and insurance resources that there would be nothing left for other victims."

Attorney Micheal Webb said the diocese planned to file for bankruptcy protection by midnight Tuesday, just hours before the first trial was scheduled to go forward in a San Diego courtroom. A Chapter 11 filing automatically halts court proceedings.

San Diego would become the fifth U.S. diocese to file for bankruptcy protection. With nearly 1 million parishioners, it would also be the largest.

Brom's letter noted: "We will be disclosing the names of those accused, about whom there is certitude regarding their abuse, as well as the extent of their abuse, and we will verify that no known abuser is functioning in ministry."

Diocese officials and plaintiffs' attorneys failed to reach a settlement during two days of negotiations before a Los Angeles Superior Court judge that wrapped up Monday.

Webb said the diocese called plaintiffs' attorneys Tuesday morning to make a "final and best" settlement offer. He declined to specify how much the church had offered, but said it was higher than total settlements reached in other U.S. dioceses.

"When they rejected it, we were left with no choice," Webb said.

Attorneys for the plaintiffs said the total amount the church had offered was insufficient because San Diego has more plaintiffs than other jurisdictions.

"It's meaningless," said Andrea Leavitt.

They also accused the church of using bankruptcy as a way to keep potentially embarrassing information under wraps. By delaying civil trials, the filing prevents diocese officials from being confronted in court with potentially embarrassing facts, missteps or documents related to past handling of abusive priests.

"For three years they've told people they want to settle, they want to be transparent, but the moment it became clear the truth will come out through a jury trial they sought to shut down victims' ability to get compensated and get out the truth," said John Manly, an Orange County attorney representing a male victim scheduled for trial in April. "It's wrong, and they're not going to get away with this."

Nicki Rister, whose suit was scheduled to go to trial Wednesday, accuses a priest of forcing her to have sex in his parish office in 1972 when she was 17. Three other trials were scheduled to follow, involving multiple victims and allegations that the diocese protected abusive priests by moving them from parish to parish.

Plaintiffs with cases already released for trial may appeal for permission to let those trials move ahead.

David Clohessy, national director of the Survivors Network of those Abused by Priests, or SNAP, told reporters outside St. Joseph's Cathedral in downtown San Diego that he and his local staff had been fielding calls throughout the day from victims, some in tears, asking about the bankruptcy.

"In all of these dioceses, the bishops claim that it's for the victims, but it's not. It's for their own self-preservation," said Clohessy.

Diocese officials first announced in a letter distributed to parishioners earlier this month that they were contemplating bankruptcy to put off going to trial. The diocese retained an Arizona bankruptcy attorney who guided the Tucson diocese through its filing, and Brom discussed the matter with diocese priests at a regular pre-Lent meeting Feb. 19 in San Diego.

The diocese which covers San Diego and Imperial counties, has 98 churches, runs 50 schools.

Previous dioceses that filed for bankruptcy were Portland, Ore., Spokane, Wash., Tucson, Ariz. and the Diocese of Davenport, Iowa. The Tucson diocese has emerged from bankruptcy, while proposed settlements in Spokane and Portland are awaiting final approval.

The Iowa diocese filed for bankruptcy just days before the civil trial of retired Sioux City Bishop Lawrence Soens was set to begin. Fifteen male plaintiffs came forward alleging abuse.

 
 

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