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  Archdiocese Begins Process to Fund Future Settlements in Civil Cases

By Cardinal Roger M. Mahony
Archdiocese of Los Angeles
May 15, 2007

http://www.la-archdiocese.org/news/story.php?newsid=885

Last December, the Archdiocese of Los Angeles settled 46 civil cases in which clergy abuse had been alleged. The total settlement cost was $60 million, with the Archdiocese contributing approximately $40 million of the total amount. At the time of that settlement, I wrote:

"Now that this settlement is finalized, our attention will focus on the resolution of all remaining cases. To reach a settlement in those cases will require the active participation of the many insurance companies who provided liability insurance during those past years when abuse occurred. It is my hope that these insurance companies will join all of us in moving steadily toward a final settlement of these cases as soon as possible."

Over the past several months, attorneys, judges and Church leaders have been working diligently to fashion a settlement that is fair and just. It is my daily prayer that this process will continue to intensify, and that in the near future these cases can be fairly settled.

Though it has always been the position of the Archdiocese that the insurance companies must honor their responsibility to fund a major share of future settlements, the Archdiocese must also be prepared to fund its share of these coming settlements. As I also said last December, this will require the Archdiocese to begin to dispose of non-essential real estate properties in order to raise funds for coming settlements, and to re-evaluate some of the services and ministries it provides to parishes.

The Archdiocese does not invest in real estate as a goal; rather, properties were acquired over the years to establish new parishes, schools, various charitable institutions, convents, etc. Some properties are held for future parishes, future schools, and similar ministry purposes. Our preference would be to retain all of those properties. But we have no other way to raise our share of money for coming settlements except through such sales.

No parishes or parish schools will be closed to fund these settlements, nor will their essential ministries be affected by these sales. None of the properties being considered for sale are being used by the parishes of the Archdiocese.

I have established a special working group with membership from the Archdiocesan Finance Council, the Deans, the Council of Priests, and the College of Consultors to identify possible eligible properties and to rank them according to use and value. Some 50 properties have already been identified, and further appraisals are being sought on their fair market value. Other possible properties that could be sold are being studied.

With concurrence of our major consultative bodies, I have requested that the first major property to be sold will be the Archdiocesan Catholic Center, located on Wilshire Blvd., in the mid-Wilshire area of Los Angeles. It is only right that the Archdiocese begin this process by demonstrating our commitment to reach final settlement in these cases by selling our central administrative building. We would then either lease other lesser office space for our ministries and services, or possibly lease back some space in the existing building.

I once again renew my pledge and that of the Archdiocese to continue the important work of preventing sexual abuse and the potential for abuse through our abuse prevention training programs, screening procedures for all priests, employees and volunteers, and our age-appropriate safe environment programs for children in our parishes and schools.

I have often said over these past years that God's grace is more powerful than the evil of sinful actions. Our Church has become more humble, more faithful, and more centered upon our primary mission: to evangelize all peoples in the name of Jesus Christ.

I am confident that we will be able to carry forward this mission with renewed energy and with a bold creativity.

Let us pray for the special intercession of Our Lady of the Angels that she will guide all of us in restoring wholeness to victims and integrity to the Church.

 
 

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