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	Bankruptcy Judge Confirms Spokane Diocese Reorganization Plan By John K. Wiley KGW [Spokane WA] April 25, 2007 http://www.kgw.com/sharedcontent/APStories/stories/D8ONAAC00.html A bankruptcy judge on Tuesday confirmed a Catholic Diocese of Spokane reorganization plan that includes $48 million for victims of clergy sexual abuse. The order by U.S. Bankruptcy Judge Patricia Williams will allow the Eastern Washington diocese to emerge from the Chapter 11 protection it entered in December 2004 in the face of numerous sex abuse lawsuits. "This moment marks a beginning of healing for the Catholic church in Eastern Washington," said Spokane Bishop William Skylstad, who is president of the U.S. Conference of Catholic Bishops. "Finally!" exclaimed Mike Shea, whose sex abuse lawsuit in May 2002 was among the first to be filed against the diocese, eventually sending church officials into bankruptcy court. About 150 people will qualify for payments under the mediated settlement contained in the plan. Each will receive payments ranging from $15,000 to $1.5 million, depending on the extent of abuse. But victims and their advocates said the money isn't as important as promises the church made to recognize that the abuse occurred and to prevent child abuse in the future. Steve Barber, a 46-year-old Spokane construction equipment salesman, said he was abused at two Spokane-area parishes by former priest Patrick O'Donnell, who has acknowledged in depositions that he molested dozens of children in the 1960s-70s. O'Donnell shared a parish rectory house with Skylstad, who has denied knowing that children were abused there. "The bishop still hasn't come forward. I'd like to know what he knew and when he knew it," Barber said. "For me, that would bring closure, not the money." Under the plan, about $20 million will come from insurance settlements. The 82 parishes in the diocese will contribute a total of $10 million, while the remainder will come from the sales of church real estate, including the bishop's house and business office, and contributions from cemeteries and other Catholic agencies. The plan also sets aside $1 million for future claims, keeping open a window for filing claims for the next 23 years. The claims go back as far as the 1930s, but the majority were from the 1960s and 1970s. The settlement requires Skylstad, whose decision to file for bankruptcy protection was controversial with victims, to support an end to statutes of limitation on sex abuse crimes and write letters of apology to victims and their families. After the hearing, Skylstad issued a statement apologizing to victims and their families and asking forgiveness. "Individuals used their positions of authority and trust to damage the least among us," he said. "When I think of what brought us to this point, I can only pray in hope that never again will a child's trust be betrayed by an individual representing the love of Christ." The reorganization plan was unanimously approved by the various parties in the case last week, even though many victims of clergy sexual abuse said the diocese should do more. "I'm afraid the nonmonetary provisions are not going to be implemented in a way that helps victims heal," said Mike Ross, a founder of the Spokane chapter of SNAP, Survivors of Those Abused by Priests. Skylstad testified during a plan confirmation hearing that he is confident the relatively small and poor diocese can meet the financial burdens of the reorganization plan. Williams had repeatedly urged the parties to reach an agreement, saying litigation could drag on for years and gobble up millions of dollars in costs. Shea said many of the victims owe their lawyers as much as 40 percent of the settlement amount. Documents filed earlier by the diocese indicated as much as $7 million of the $48 million pool will go to pay bankruptcy lawyers. Williams said those costs will be decided later by the plan administrators. "I commend the parties for getting to where they got by resolution and mediation," Williams said Tuesday. The 93,000-member diocese is among five nationwide that have sought bankruptcy protection against claims of clergy sexual abuse. After Williams rejected an earlier diocese settlement offer, U.S. Bankruptcy Judge Gregg W. Zive of Reno, Nev., oversaw six months of mediation that in January resulted in the plan that was approved by creditors, most of whom are abuse victims. Other U.S. dioceses that have filed for bankruptcy protection to stave off sex abuse lawsuits include San Diego; Davenport, Iowa; Portland, Ore.; and Tucson, Ariz. Tucson has emerged from bankruptcy protection. A U.S. Bankruptcy Court judge earlier this month approved a reorganization plan for the Archdiocese of Portland. That plan includes a $75 million settlement.
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