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  Diocese Considers Settlement with Priest Abuse Victims

KXLY News 4 [Spokane WA]
September 13, 2005

The Spokane Catholic Diocese may once again try to settle with victims of priest sex abuse.

News 4 has confirmed through multiple sources that renewed settlement talks begin this week.

Officially, the Diocese will only say it's "exploring settlement possibilities."

But sources close to the negotiations tell us a meeting in Seattle is scheduled for Tuesday morning.

The Diocese has until October 10th to file a reorganization plan in bankruptcy court. Part of that plan will likely include some kind of settlement possibility with victims.

The Diocese recently lost a major court decision when a judge sided with the victims, saying Bishop William Skylstad does indeed own churches and schools, and those parish properties could be liquidated. While the Diocese says it will challenge that ruling, it has pushed them into these settlement talks.

Victims have maintained all along they are owed over $70 million, while the Diocese says they could raise only substantially less. Now, with churches and schools on the table, that could all change.