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  Bankruptcy Judge Approves Diocese Plan to Sell off Property

KVOA [Tucson AZ]
March 22, 2005

A federal bankruptcy judge has approved a plan by the Roman Catholic Diocese of Tucson to sell some 85 properties to settle claims filed by people who say they were sexually abused by priests.

U.S. Bankruptcy Judge James M. Marlar gave diocesan officials the go-ahead during a hearing Monday after none of the creditors objected to the marketing plan and sale, which is expected to take place in about eight weeks.

The diocese is considering selling the land in a live public auction. The land is expected to raise at least $3.2 million to go into a fund for plaintiffs with valid claims of clergy sexual abuse.

The diocese's Chapter 11 reorganization plan calls for the creation of a fund to "equitably" pay all plaintiffs with valid claims of abuse.

The proposed plan says the validity of the claims will be decided by a "special master" assigned by the court.

The property that will be for sale includes 31 pieces of mostly vacant land in Pima County. Most of the land was donated to the diocese and includes property that had been slated for future parishes in Marana and on Tucson's southeast side.

The diocese also wants to use insurance money and parish contributions to settle abuse claims.

The bankruptcy plan calls for money to be set aside for claims reported by a deadline of April 15, and also for future claims and expenses for litigation should any claims go to trial.

When the diocese sought bankruptcy protection Sept. 20, it was facing 22 lawsuits filed by 34 plaintiffs alleging sexual abuse of children by priests.

The filing followed a $14 million settlement the diocese reached in 2002 with 10 men who claimed they were abused by four local clergy members in the 1960s-80s.

 
 

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