Judge to Allow 42 Abuse Suits to Go to Trials, by Sandi Dolbee and Mark Sauer, Union-Tribune, August 25, 2007

Judge to Allow 42 Abuse Suits to Go to Trials

By Sandi Dolbee and Mark Sauer
Union-Tribune
August 25, 2007

http://www.signonsandiego.com/news/metro/20070825-9999-1n25diocese.html

A federal bankruptcy judge ordered yesterday that 42 lawsuits against San Diego's Catholic diocese be released for jury trials, moving men and women who say they were sexually abused as children closer to getting their day in court.

Judge Louise DeCarl Adler's ruling, handed down just before the close of business, comes four years after the first in an avalanche of lawsuits were filed against the diocese. The 127 lawsuits had been halted after the diocese sought bankruptcy protection in February.

In her 14-page decision, Adler dismissed the diocese's arguments against releasing the first grouping of cases to state court. She wrote that the victims have a constitutional right to jury trials and that barring a settlement, prompt resolution of the bankruptcy case appears unlikely.

The judge also repeated her criticisms that the diocese's $95 million settlement offer was well below the state average for such abuse claims, and that its attorneys were "forum shopping," or looking for courts that would look more favorably on their case.

Victims and their attorneys applauded yesterday's decision.

"I think it's a terrific step forward," said Victoria Martin, 60, a Long Beach woman who alleges she was sexually abused by a San Diego priest from 1959 to 1960. "I'm ready to go to trial. It's just gone on too long."

Michael R. Bang, who alleges a priest abused him for several years in the 1970s, said he is looking forward to telling his story in court.

"I want the truth to be known," said Bang, 46, who now lives in Atlanta. "I want people to understand how significant the sexual molestation has been and how high up the cover-up has been."

Overview

Background: On Feb. 27, just as the first lawsuit was set to go to trial, the Roman Catholic Diocese of San Diego filed for Chapter 11 bankruptcy reorganization.

Core dispute: Fixing a dollar value on claims by roughly 150 men and women who say they were sexually abused as minors by priests and church workers.

Developments: Yesterday, the federal bankruptcy judge released about one-third of lawsuits for jury trials. The bankruptcy proceeding had put the suits on hold.

What's next: The judge still has to formally lift the stay on the released cases before trial dates can be set. She is set to consider that Sept. 6.

Wild card: Also Sept. 6, the judge will consider whether to dismiss the bankruptcy case altogether.

Online: For more information, go to uniontrib.com/more/abuse

Jim Stang, attorney for the victims committee in the bankruptcy proceeding, cautioned that Adler still must take the step of formally lifting the stays placed on the 42 cases after the diocese filed for bankruptcy.

The judge is expected to decide whether to do so Sept. 6. Until the stays are lifted, Stang said, "the green light has not been given."

In a hearing Thursday, the diocese insisted that jury trials would be time-consuming and result in fragmented outcomes. Its attorneys asked for another process: have the federal court place a dollar value on the claims and let the victims reject or accept that offer. Those who reject it could pursue trials in federal court.

Susan Boswell, the diocese's lead bankruptcy attorney, denied yesterday that the diocese was forum shopping or trying to avoid jury trials.

"We believed when we filed (for bankruptcy) and still believe that this process affords the best way for all of the victims to receive compensation in a more expeditious way," she said.

In his letters to parishioners, San Diego Bishop Robert Brom has maintained that his goals are twofold: to justly compensate the victims and keep the church's finances healthy enough that it can continue its mission and ministry.

Should Judge Adler lift the stays on the lawsuits Sept. 6, a hearing will then be held before Superior Court Judge John Einhorn to determine the status of four cases that had been set to begin trial shortly after the bankruptcy petition was filed.

Stang, the attorney for the victims committee, and others suggest that yesterday's decision will place more pressure on the ongoing settlement talks with a federal mediator.

"The message the order sends is very clear: Settle or subject yourself to what potentially might be much higher verdicts," said Andrea Leavitt, a San Diego lawyer who represents several cases.

Both sides have said significant progress has been made in settlement talks in the past two weeks.

"My understanding is that they are pretty close," said one person who asked not to be named because the meetings are confidential. If a settlement is reached, victims said they hope that one of the terms will be that Bishop Brom release files about abusive priests and church workers.

With a million Catholics in San Diego and Imperial counties, the diocese is the largest of five that have filed for bankruptcy protection in the face of a national scandal. Most of the lawsuits the San Diego diocese faces were filed in 2003, when the state temporarily lifted the statute of limitations.

On Sept. 6, Judge Adler also is set to decide whether to dismiss the bankruptcy case outright.

"If I were the judge, I would dismiss this action," said Scott Ehrlich, a bankruptcy specialist who teaches at San Diego's California Western School of Law and who sat in on part of Thursday's hearing.

"The only reason to be in Chapter 11 is that the debtor is willing to come up with a plan that the victims can agree to," he added. "That is not happening here, and we are wasting our time."

Sandi Dolbee: (619) 293-2082; sandi.dolbee@uniontrib.com
Mark Sauer: (619) 293-2227; mark.sauer@uniontrib.com