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  San Diego Bishop Testifies before Bankruptcy Committee

By Allison Hoffman
Union-Tribune
April 20, 2007

http://www.signonsandiego.com/news/metro/20070420-1318-ca-churchabuse-bankruptcy.html

San Diego — The bishop of the Roman Catholic Diocese of San Diego appeared in federal court Friday to answer questions about church finances amid accusations that the diocese is shielding assets in bankruptcy proceedings.

About 50 people, including some of the more than 140 people who have sued the diocese on claims they were sexually abused by priests, gathered to watch the sometimes testy exchange between Bishop Robert H. Brom and a federal trustee supervising the hearing.

U.S. trustee Steven Katzman grew impatient when asking Brom about properties and other assets listed in diocesan filings with the bankruptcy court.

"Just answer the question," Katzman said at one point.

Brom, dressed in his collar, replied in a calm voice throughout, frequently telling Katzman that he needed to refer to his staff for answers to the questions.

Attorneys representing victims of alleged abuse have repeatedly accused the diocese of undervaluing its holdings and of shifting assets to parishes in an effort to reduce the total amount available for any eventual settlement.

People claiming abuse lined up at the start of the hearing to put their names down for the chance to put their own questions to the bishop later in the proceedings.

Questions were to be limited to matters directly relating to diocesan financial records and its proposed reorganization plan, and the bishop was not to answer to the abuse allegations, said James Stang, a bankruptcy attorney representing the plaintiffs.

Brom had not appeared in court since the diocese filed for Chapter 11 bankruptcy protection in February, just hours before the first civil trial was slated to begin in San Diego Superior Court.

In a letter posted to the diocese Web site for distribution to parishioners this weekend, Brom called for remaining abuse victims to step forward and file claims. On Thursday, diocese attorneys asked the judge overseeing the bankruptcy to set a 150-day window for new claims.

Last month, the diocese proposed a $95 million settlement for sex-abuse victims that would pay plaintiffs between $10,000 and $800,000 each. An additional $3 million fund would be established to resolve claims that have not yet been filed.

Plaintiff attorneys are seeking a settlement of about $200 million.

With nearly 1 million Catholics and holdings throughout San Diego County, the diocese here is by far the largest and, by all accounts, the wealthiest of the five U.S. dioceses to have filed for Chapter 11 bankruptcy protection under the shadow of civil claims over sexual abuse.

San Diego was the fifth U.S. diocese to file for bankruptcy. The other dioceses that have filed for bankruptcy protection are Davenport, Iowa; Portland, Ore.; Spokane, Wash.; and Tucson, Ariz. Tucson and Spokane have emerged from bankruptcy protection, while a judge overseeing Portland's bankruptcy plan said last week she intends to approve it.

 
 

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