Creditors: Parishes, schools part of archdiocese assets that could pay clergy abuse claims

By Haidee Eugenio Gilbert
Pacific Daily News
December 17, 2019

https://bit.ly/2RXYelD

The Santa Marian Kamalen is celebrated at the Dulce Nombre de Maria Cathedral-Basilica in Hagatña, Dec. 9, 2019. Photo by Frank San Nicolas

Creditors of the Archdiocese of Agana asked the federal court for a partial summary judgment that, if granted, could pave the way for the use of Catholic parishes and schools' assets to pay some 280 clergy sex abuse claims.

These include everything from cars and vans to buildings, parishes, schools and cemetery property.

The creditors said the archdiocese, its parishes and its schools "are one and the same under civil law."

Because they are one and the same, the assets of these parishes and schools "should be available to pay creditor claims," the Official Committee of Unsecured Creditors, represented by Minnesota-based attorney Edwin Caldie, said in court filings pertaining to the archdiocese's bankruptcy case.

The archdiocese's position, however, is that it only holds assets in trust for these other entities.

Because these assets are held in trust, such assets are not available to pay the claims of abuse survivors and other creditors in the bankruptcy case, the archdiocese said.

The archdiocese filed for bankruptcy on Jan. 16 so that it can settle abuse claims while also keeping its parishes, schools, soup kitchen and other ministries open.

In its amended complaint, the creditors listed Catholic schools, parishes, cemeteries, a shelter for battered women, vehicles and other properties they believe should be scheduled as "property of the estate."

They include the Dulce Nombre de Maria Cathedral Basilica in Hagåtña, which the creditors' committee valued at $9.5 million.

The list also includes St. Anthony Church and School in Tamuning valued at $6.2 million; and Father Duenas Memorial School, valued at 2.4 million; and Santa Barbara Catholic School in Dededo valued at $2 million, among other things.

The creditors said the parishes and schools unquestionably fit the well-established definition of an "unincorporated division."

They said the archdiocese voluntarily elected to organize its parishes and schools in a manner that would ensure its ongoing, pervasive control over them.

Parties have been unable to settle the claims in the archdiocese's bankruptcy case. One of the attorneys for clergy abuse plaintiffs is trying to sue insurers to compel them to pay for the abuse claims.

Clergy sex abuse claims' demand for minimum damage is over $1 billion, while the archdiocese listed $22.96 million in assets and $45.66 million in liabilities when it sought bankruptcy protection.

The archdiocese earlier issued a list of non-essential assets that it said it could sell to help pay abuse claims and stabilize its finances.

Creditors of the Archdiocese of Agana asked the federal court for a partial summary judgment that, if granted, could pave the way for the use of Catholic parishes and schools' assets to pay some 280 clergy sex abuse claims.

These include everything from cars and vans to buildings, parishes, schools and cemetery property.

The creditors said the archdiocese, its parishes and its schools "are one and the same under civil law."

Because they are one and the same, the assets of these parishes and schools "should be available to pay creditor claims," the Official Committee of Unsecured Creditors, represented by Minnesota-based attorney Edwin Caldie, said in court filings pertaining to the archdiocese's bankruptcy case.

The archdiocese's position, however, is that it only holds assets in trust for these other entities.

Because these assets are held in trust, such assets are not available to pay the claims of abuse survivors and other creditors in the bankruptcy case, the archdiocese said.

The archdiocese filed for bankruptcy on Jan. 16 so that it can settle abuse claims while also keeping its parishes, schools, soup kitchen and other ministries open.

In its amended complaint, the creditors listed Catholic schools, parishes, cemeteries, a shelter for battered women, vehicles and other properties they believe should be scheduled as "property of the estate."

They include the Dulce Nombre de Maria Cathedral Basilica in Hagåtña, which the creditors' committee valued at $9.5 million.

The list also includes St. Anthony Church and School in Tamuning valued at $6.2 million; and Father Duenas Memorial School, valued at 2.4 million; and Santa Barbara Catholic School in Dededo valued at $2 million, among other things.

The creditors said the parishes and schools unquestionably fit the well-established definition of an "unincorporated division."

They said the archdiocese voluntarily elected to organize its parishes and schools in a manner that would ensure its ongoing, pervasive control over them.

Parties have been unable to settle the claims in the archdiocese's bankruptcy case. One of the attorneys for clergy abuse plaintiffs is trying to sue insurers to compel them to pay for the abuse claims.

Clergy sex abuse claims' demand for minimum damage is over $1 billion, while the archdiocese listed $22.96 million in assets and $45.66 million in liabilities when it sought bankruptcy protection.

The archdiocese earlier issued a list of non-essential assets that it said it could sell to help pay abuse claims and stabilize its finances.

The largest of them all is the former Accion Property in Yona, which was supposed to be sold for $6.1 million until the Georgia-based investor backed out. The losing bidder in August has once again offered to buy the property for $5.7 million.

The archdiocese is represented by attorneys Ford Elsaesser and John Terlaje in its bankruptcy case.

On Friday, attorney Vincent C. Camacho filed in court his appearance on behalf of 34 Catholic schools and parishes.