Attorneys for Archdiocese, Abuse Victims Spar in Court

KSTP
August 29, 2017

http://kstp.com/news/archdiocese-of-st-paul-and-minneapolis-spar-with-attorneys-for-priest-abuse-victims-us-bankruptcy-court--/4589968/

Attorneys for the Archdiocese of St. Paul and Minneapolis sparred with attorneys for the victims of sex abuse by priests in U.S. Bankruptcy Court Tuesday.

The archdiocese proposes putting $156 million into a trust for about 400 victims. About $120 million would come from insurance companies.

"It is this archdiocese that continues now to pour salt in the wounds by engaging in secret settlements with insurance companies," attorney Jeff Anderson said after representing victims in court. He says the settlements were reached without input from attorneys for victims.

"Our plan provides $156 million with certainty in the very, very near future to a trust to be distributed to victims of sexual abuse as that trust sees fit," said Charles Rogers, an attorney for Briggs and Morgan, which represents the archdiocese.

The Archdiocese of St. Paul and Minneapolis bankruptcy reorganization at a glance

Source: Archdiocese of St. Paul and Minneapolis, KSTP news reports

On January 16, 2015 the archdiocesan corporation filed for Chapter 11 Reorganization under the bankruptcy code. The archdiocese described the move as the fairest way to resolve existing sexual abuse lawsuits as well as future claims while permitting the it to continue essential ministry and support to local people, parishes and Catholic schools.

Under the original reorganization, the a proposed trust for claimant victims topped out at $65 million with about half that ($33 million) coming from settlements with insurance carriers.

The archdiocese increased the proposed trust in November to more than $130 million after further settlements with carriers; $92 million was to come from the settlements.

The victims rejected that proposal in favor of a plan that would see the archdiocese remain on the hook for $80 million toward the fund, the release of investigative report concerning former Archbishop John Nienstedt, and a promise the archdiocese would must payments to priests who have been credibly accused of sexual misconduct.

Victims who attended the hearing in Minneapolis Tuesday say it's not the amount of money that matters, other than to send the strongest message possible to the archdiocese.

"The priest that abused me is comfortably retired and still being paid by the archdiocese while I have struggled," James Heutmaker said outside the courthouse after attending the hearing.

Another victim says the archdiocese is just trying to wear them down.

"This is a tactic they use," said Jim Keenan, another victim who attended the hearing. "They want to slow it down. They want to wear you out. They want you to eventually say I give in ... it's not worth it."

Attorneys for the archdiocese say their settlement offer will help victims quickly.

"The other alternative again is years of litigation and uncertainty," Rogers told reporters.

The bankruptcy judge will take time to consider the arguments before deciding how to proceed.