Judge Rules against Diocese's Request on Value of Abuse Cases, by Sandi Dolbee and Mark Sauer, Union-Tribune, August 20, 2007

Judge Rules against Diocese's Request on Value of Abuse Cases

By Sandi Dolbee and Mark Sauer
Union-Tribune
August 20, 2007

http://www.signonsandiego.com/news/metro/20070820-1634-bn20diocese.html

A U.S. District Court judge ruled Monday against the Roman Catholic Diocese of San Diego's request to remove the authority to estimate the value of childhood sexual abuse cases from federal Bankruptcy Court – at least for now.

"At this juncture, the Bankruptcy Court is in the best position to determine from a case management standpoint how and when these actions should proceed for estimation or liquidation," wrote Judge Irma Gonzalez in her nine-page ruling.

Read the judge's ruling (PDF)

Instead, she set another hearing for Nov. 26 to check on the status of the Chapter 11 reorganization case and attempts to settle lawsuits involving some 150 men and women who say they were sexually molested as minors by priests and other church workers.

Putting a value on the claims is one of the most crucial issues in the bankruptcy case. The diocese has offered $95 million; plaintiffs' lawyers want twice that amount.

Gonzalez's decision came after both sides spent much of Friday morning trying to persuade her to their points of view.

Susan Boswell, the diocese's lead bankruptcy attorney, argued that having the U.S. District Court set the value of the victims' claims is the most timely and practical way to compensate the men and women and still allow the church to continue its spiritual and charitable work.

She said the U.S. District Court needs to sign off on whatever's decided, so it should get involved now – rather than later.

"This debtor needs to reorganize," Boswell said. "Those victims need to know what they're going to get in terms of a plan and vote it up or down."

Attorney Jim Stang, who represents the committee of sexual-abuse victims in the bankruptcy case, accused diocese attorneys of "forum shopping" – trying to find a judge who will place values on the cases in a way that does not involve jury trials.

"They say they want (the victims) fairly compensated. That could not be further from the truth," Stang said. "They are trying to grind these people down so they wind up taking less than the settlements throughout California call for."

Sandi Dolbee: (619) 293-2082; sandi.dolbee@uniontrib.com;

Mark Sauer: (619) 293-2227; mark.sauer@uniontrib.com.