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  Lawsuit Filed to Determine Catholic Diocese's Assets

By Scott Marshall
North County Times
May 30, 2007

http://www.nctimes.com/articles/2007/05/31/news/sandiego/11_42_565_30_07.txt

San Diego -- A lawsuit was filed Tuesday in federal bankruptcy court to determine whether the Catholic diocese in San Diego or individual parishes are the owners of certain property in a dispute in the church's bankruptcy case.

A committee of creditors who have a claim to money from the diocese, including victims of alleged childhood sexual abuse at the hands of priests, are asking for court orders declaring that the parishes are not separate from the diocese and that the diocese is the owner of the property at issue.

At a May 10 hearing, U.S. Bankruptcy Judge Louise DeCarl Adler instructed attorneys for the creditors committee to file the lawsuit so she can decide what assets belong to the diocese and what belongs to the parishes. The lawsuit involves four specific parishes, including St. Margaret's in Oceanside and St. Mark's in San Marcos.

The diocese filed for bankruptcy Feb. 27, bringing a halt to sexual abuse litigation on the eve of the first trial of an abuse case in San Diego.

The diocese has offered to pay $95 million to settle the more than 140 sexual abuse claims filed against it, but attorneys for alleged abuse victims have said a fair settlement would be closer to $200 million.

-- Scott Marshall

 
 

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