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  Diocese Spends Almost $100,000 Looking for Abuse Victims

By Ann McGlynn
Quad-City Times
September 9, 2007

http://www.qctimes.com/articles/2007/09/09//news/local/doc46e383ace6428439187176.txt

The Diocese of Davenport spent $99,142 for a mass mailing and advertising in dozens of publications and on radio to find potential sex abuse victims and anyone else with a financial claim for the diocese's bankruptcy case, according to documents filed in its bankruptcy.

The ads were placed in national and regional papers, including the Chicago Tribune, Kansas City Star and Quad-City Times, as well as 23 small papers, such as the Newton Daily News and Tipton Conservative.

A national news release was distributed. Notice was published in the Diocese of Davenport newspaper, as well as the publications of other Midwestern dioceses.

Every issue of every parish bulletin also published the notice for several weeks, and announcements were made on Catholic radio stations in the area. Pastors also were required to read a letter from the bishop announcing the deadline for claims.

The list of where to publish and broadcast notice was submitted to the diocese by the creditors committee, a group of people with claims against the diocese.

"We tried to reach as many people as we could," said Mike Uhde, chairman of the creditor's committee. "Obviously, we were very successful in doing that with the number of claims generated."

That number is 156.

The amount of money spent on getting the word out is included on a financial document filed with the diocese's bankruptcy.

It also included what diocese attorney Richard Davidson classified as a $316,489 estimate for attorney fees for all involved in the case. An estimate of amount to be paid on claims is listed at $5 million, but Davidson said that number is not an accurate reflection of what the final amount will be.

The settlement, Davidson said, will be from the diocese's insurance company and other proceeds, including the sale of property. The bills for the bankruptcy, including the advertisements and attorneys fees, will be paid from the settlement.

Sale completed

The disputed sale of the former home of Bishop William Franklin has been completed, records show, with St. Ambrose University purchasing the duplex for $184,000, according to records from the Scott County Auditor. Another buyer placed a bid on the house at the last minute but was ultimately outbid. St. Ambrose raised its initial offer from $170,100.

Insurance coverage for davenport diocese

Two insurance research organizations that assisted the Archdiocese of Portland in its bankruptcy proceedings may be helping the Diocese of Davenport reconstruct its insurance coverage from the middle of the 20th century.

The Insurance Archaeology Group, based in New York City, and Robert Hughes Associates of Richardson, Texas, research and interpret, respectively, a wide variety of documents to determine that coverage, said Richard Davidson, attorney for the diocese.

The services of the companies, Davidson said, will be used if a settlement with the insurance company, Travelers, cannot be reached to pay the claims deemed legitimate.

The diocese, court documents state, has not been able to locate any actual insurance policies issued from the 1950s through 1968, when a "substantial portion" of the sexual abuse occurred.

However, the diocese does have what it calls "secondary evidence" of coverage.

Insurance Archaeology Group would review located records for evidence, as well as interview the individuals who have conducted the research. The group also could go to parishes, hospitals, nursing homes and orphanages to locate information.

Insurance information could also be found in correspondence, financials, lease, real estate or mortgage files, group officials said in a letter outlining their proposal. They would ask the diocese's former outside counsel, McCarthy Bush, for assistance.

The former insurance broker for that time period has been located and could be interviewed, officials said. There is a 1959 correspondence with the city of Davenport that could lead to additional information. Workers compensation and court documents also could be analyzed for evidence.

Ann McGlynn can be contacted at (563) 383-2336 or amcglynn@qctimes.com.

 
 

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