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  Diocese: Parishes Likely Would Have Lost Lawsuits

By Ann McGlynn
Quad-City Times
February 15, 2008

http://www.qctimes.com/articles/2008/02/15/news/local/doc47b526a25c932950576808.txt

The Diocese of Davenport agreed to pay $5.5 million more in its $37 million bankruptcy settlement to ensure that parishes, schools and other Catholic entities would not face lawsuits they would have likely lost, diocesan officials said in a statement released Thursday.

The money, and its release from liability for all abuse that occurred before the diocese filed for bankruptcy in October 2006, was an "insurance policy for every parish and all other Catholic entities in the diocese" and allowed them to avoid lawsuits.

"Legal fees alone would have been ruinous and it is highly likely that the lawsuits would be lost, threatening the very survival of these parishes and other entities," leaders said.

The diocese asked four parishes to contribute $2.9 million to the settlement fund. St. Anthony's and Sacred Heart in Davenport will contribute

$1 million a piece, St. Mary's in Iowa City will provide $650,000 and Our Lady of Lourdes in Bettendorf is contributing an undisclosed amount believed to be approximately $250,000.

The parishes were some where serious abuse occurred, officials said.

"These parishes were specific targets for lawsuits because they have sizable assets which could be taken," the statement said. "The contributions that have been requested by the diocese are far less than the consequences of being sued."

The diocese took the position during bankruptcy negotiations that parishes are separate legal entities. The claimants, meanwhile, argued that the parishes could be considered under the control of the bishop, and therefore considered in the calculation of assets.

Craig Levien, attorney for several diocesan sex abuse victims, said if the bishop directed the four parishes to pay, "this proves what we've always said: the bishop controls the parishes."

The diocese filed for bankruptcy after a jury awarded Mike Uhde $1.5 million for abuse suffered as a child by the now-dead Monsignor Tom Feeney at Sacred Heart Cathedral. A second lawsuit, filed by Michael Gould of Florida alleging he was molested by retired Bishop Lawrence Soens, was set to go to trial within days.

A plan on how the diocese will emerge from bankruptcy is awaiting approval from Judge Lee Jackwig. A hearing on the matter is set for March 5.

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

 
 

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