No Payouts Soon: Archdiocese, Clergy Sex Abuse Claimants Unable to Reach Settlement
By Haidee V Eugenio
No payouts are expected anytime soon from the Archdiocese of Agana, after its settlement talks with clergy sex abuse claimants' attorneys collapsed. The two-day settlement conference in the archdiocese's bankruptcy abruptly ended after the first day. The archdiocese, represented by attorneys John Terlaje and Ford Elsaesser, offered a settlement amount that attorneys for clergy sex abuse survivors and other claimants were not able to accept. U.S. Bankruptcy Judge for the District of Hawaii Robert J. Faris served as the mediator in the settlement conference. Clergy abuse survivors and attorneys said they could only comment on the general outcome of and expectations about the talks. "There was no settlement reached," clergy sex abuse survivors' attorney Kevin Fowler said. "I thought we could make some progress on some of the issues, and that's where the disappointment is." Fowler has been working with Seattle-based Pfau Cochran Vertetis Amala law firm in representing 20 clergy sex abuse plaintiffs. "Parties were far apart in their positions so an agreement was not possible," said attorney Mike Berman, representing 63 clergy sex abuse survivors. Idaho-based attorney Craig Vernon said speaking generally, "the fact that the first mediation was unsuccessful is historically consistent with Catholic bankruptcies across the United States" "In these other bankruptcies, several mediations were needed before the parties reached an agreement," he said. Vernon is working with Guam attorney Anthony Perez and Hawaii-based attorney Randall Rosenberg in representing 19 clergy sex abuse survivors. Most of Guam's clergy sex abuse claimants are represented by attorney David Lujan, who had said he wasn't optimistic there would be a settlement in the scheduled two-day talks. 'Greatest measure of justice' Archbishop Michael Jude Byrnes, in a statement Thursday, said the archdiocese remains committed to what it has set out to accomplish, "to bring the greatest measure of justice to the greatest number of victims of clergy abuse in the Catholic Church on Guam." "We are focused on doing this while enabling the archdiocese to continue its mission at our schools, parishes and ministries," Byrnes said. Tony Diaz, the archdiocese's director of communication, said the archdiocese participated in mediation meetings on Wednesday but as advised by legal counsel, "we cannot comment on anything discussed or occurring during the mediation as we abide with instruction by the mediator to maintain strict confidentiality about the proceedings." Lawyers said at this point it would be up to U.S. District Court Chief Judge FrancesTydingco-Gatewood to decide what the next step would be in the church's bankruptcy process. The archdiocese listed $22.96 million in assets and $45.66 million in liabilities when it filed for reorganization bankruptcy in January, about four months since its initial attempt to settle abuse claims didn't work out. It sold the former Accion Hotel in August for $6.1 million, and has been working with its insurers to help pay the claims. Clergy abuse plaintiffs demand more than $1 billion in damages. Accountant hired While the settlement negotiations bogged down, the archdiocese got court approval on Thursday to hire an accountant in its ongoing bankruptcy. Tydingco-Gatewood authorized the archdiocese to employ Deloitte & Touche LLP. The archdiocese said Deloitte & Touche will perform a review of the archdiocese's balance sheet as of June 30, 2019, and the related statements of income, retained earnings, and cash flows. Reporter Haidee Eugenio Gilbert covers Guam's Catholic church issues, government, business and more. Follow her on Twitter @haidee_eugenio.
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