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  Diocese Seeks to Cap Sex-Abuse Claims

phillyburbs.com [Tucson AZ]
April 27, 2005

TUCSON, Ariz. - The Roman Catholic Diocese of Tucson has filed an amended bankruptcy organization plan, seeking to cap its payout for sex-abuse claims at $20 million. A plaintiffs' lawyer said the amount wasn't enough and vowed to challenge the proposal.

Initial payments to alleged abuse victims would range from $100,000 to $600,000, depending on the severity of the abuse, according to the amended plan filed Monday.

The bankruptcy court has logged 103 abuse claims against the diocese, which in September became the second in the country to file for Chapter 11 reorganization protection in the face of litigation stemming from alleged sexual abuse by priests.

Critics said the cap falls short of compensating victims whose claims are substantiated.

"It's nowhere near going to pay the victims what they deserve," said Kim E. Williamson, an attorney representing 25 alleged sex-abuse victims.

The plan would allow the diocese to keep any amount over $20 million that is raised to pay abuse claims, including contributions from parishes and money recovered from insurers under liability insurance policies or settlements.

Diocese bankruptcy attorney Susan Boswell declined to comment on the amended plan but said creditors have until May 13 to file objections, ahead of a hearing slated for May 19.

In its filing, the diocese said that of the 103 sex-abuse claims, 36 appeared to be invalid on their face; nine were filed by parents of alleged victims; and 32 appeared plausible but require more information or appear to be barred by the statute of limitations.

The diocese maintains it doesn't have enough money to pay all claims and that the bankruptcy reorganization is the only way to pay off plaintiffs and other creditors fairly while preserving the diocese.

Williamson said that minus the $5.5 million the diocese has proposed setting aside for unknown future claims, the $14.5 million remaining cap wouldn't go far, amounting to an average $145,000 each if 100 claims were found to be valid.

The diocese listed $16.6 million in assets and $20.7 million in liabilities when it filed for bankruptcy protection, not including parishes.

 
 

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