BishopAccountability.org
 
  Judge OKs Diocese Disclosure Statement

Associated Press, carried in Press-Citizen
April 3, 2008

http://www.press-citizen.com/apps/pbcs.dll/article?AID=/20080403/NEWS01/804030316/1079

DAVENPORT — A federal bankruptcy judge approved a disclosure statement Wednesday explaining how the Davenport Diocese plans to emerge from the bankruptcy protection it sought after a decades-long clergy sexual abuse scandal.

The ruling by Judge Lee Jackwig has attorneys optimistic that a $37 million settlement between the diocese and abuse victims also will be approved.

"If the plan was patently unapprovable, she would not have approved the disclosure statement," said Hamid Rafatjoo, the attorney for the committee representing abuse victims in the case.

The disclosure statement will be mailed to the 162 victims for a vote. They also will review and vote on the diocese's reorganization plan, which outlines terms of the settlement and the diocese's efforts to prevent future abuse. Victims will have until April 23 to vote on the plan.

Mike Udhe, co-chairman of the committee representing victims, said he was encouraged with Jackwig's decision to move forward.

"The faster we can get this approved and behind us, the better it will be for the 162 people involved," he said.

Last month Jackwig refused to approve the disclosure statement, saying she was concerned about whether bankruptcy law allows the diocese's 83 parishes to be included in the settlement.

Attorneys then submitted a revised statement for the plan, which releases all diocese schools and parishes from liability for abuse that happened before the bankruptcy filing.

Diocese attorney Richard Davidson said the insurance company would not settle unless the parishes were included for fear that victims also could sue those individual entities.

Still, Jackwig questioned parts of the plan, including why only four parishes were contributing to the settlement. These churches — St. Mary's of Iowa City, Sacred Heart Cathedral and St. Anthony's of Davenport and Our Lady of Lourdes in Bettendorf — will contribute a combined $2.65 million.

Davidson said these churches had the most significant assets and the largest number of claims of clergy abuse.

Jackwig still must OK the plan for it to take effect. A hearing is set for April 30.

 
 

Any original material on these pages is copyright © BishopAccountability.org 2004. Reproduce freely with attribution.