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  Diocese Ponders Bankruptcy in Dealing with Settlement

By Mary Beth Smetzer
Fairbanks Daily News-Miner
November 20, 2007

http://newsminer.com/2007/11/20/10007

The $50 million Jesuit settlement for more than 100 Alaska Native sexual abuse victims leaves the Fairbanks Catholic Diocese, as the sole defendant, with approximately 150 clerical sexual abuse claims unresolved.

"It's great that they settled," said Robert Hannon, special assistant to Catholic Bishop Donald Kettler, "but it doesn't change too many things for us."

The diocese has been exploring other options, including reorganization of the diocese under Chapter 11.

More than a year ago, the diocese took on extra counsel, hiring a Tucson, Ariz., law firm for settlement litigation as well as reorganization advice.

Hannon said the law firm was used by the Tucson Diocese through its Chapter 11 reorganization.

The Tucson Diocese filed for bankruptcy in 2004.

Last summer, the diocese withdrew from mediation with the victims' lawyers when the two sides couldn't find common ground for a settlement, Hannon said.

According to Hannon, the diocese is still hoping to find a settlement and is optimistic that a Dec. 14 Anchorage court hearing bringing together counsel on both sides as well as the diocese's insurance carriers will provide that opportunity.

"We would love to sit down under Judge (Niesje J.) Steinkruger and come to a settlement option," Hannon said.

"We're all for anything that brings resolution and healing and some sense to anybody who feels they have been harmed by Catholic clergy staff or volunteers," he said. "We just passed our national audit again with commendations for protection of children."

Contact staff writer Mary Beth Smetzer at 459-7546.

 
 

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