Sex Abuse Survivors Turn down Archdiocese's Plan to Compensate Them

By Martin Moylan
Minnesota Public Radio
May 11, 2017

http://www.mprnews.org/story/2017/05/11/archdiocese-bankruptcy-plan-vote

The Cathedral of St. Paul in St. Paul, Minn., on September 8, 2015. The archdiocese has put several buildings up for sale, including two chancery buildings across the street and an office building around the corner that houses the Catholic Spirit newspaper.

In a landslide vote, sex abuse survivors have rejected a reorganization and compensation plan from the bankrupt Archdiocese of St. Paul and Minneapolis.

The church was offering at least $155 million. But 94 percent of abuse victims voting endorsed a competing plan that they expect would treat them more justly and extract much more money from the church and its insurers.

"The vote speaks volumes to the unity and perseverance of victims and survivors," said James Keenan, an abuse survivor and chair of the creditors' committee. "We're going to stand together and see this thing through to the end. And we're going to do this thing right.

The creditors' committee believes there could be more than $1 billion available from insurers. But insurers would no doubt fight claims tenaciously. They can, for instance, argue they can't be on the hook for abuse that the church knew about but failed to stop.

The vote does not determine which plan, if either, is adopted. The judge overseeing the bankruptcy decides if a plan is feasible and legal. There'll be hearings to determine that.

Archbishop Bernard Hebda issued a statement saying the church plan is fair and just.

He said the church plan would provide compensation without the need for any additional litigation or uncertainty.

"It pains me that the longer this case plays out in court, the greater will be the attorneys' fees and costs incurred, diminishing settlement funds that would otherwise be available to those who have been harmed," he wrote.

Victims want more than money. The plan they back calls for the release of an investigative report concerning former Archbishop John Nienstedt. It also requires an end to payments made to priests credibly accused of sexually abusing children.

The archdiocese filed for bankruptcy in January 2015. As of last fall, the church had spent about $12 million on legal and other expenses related to the bankruptcy.