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  The Catholic Register: Diocese Sells Properties to Meet Sex-Abuse Settlement, Sues Insurers

By Joseph Sinasac
Catholic Online
June 22, 2006

http://www.catholic.org/international/international_story.php?id=20286

Corner Brook, Canada (The Catholic Register) – The Diocese of St. George's in Newfoundland is on schedule to pay out a $13-million settlement to victims of sexual abuse at the hands of a priest, despite a legal battle with its own insurance companies.

"Every single payment is difficult. We have to work hard to raise the money," Bishop Douglas Crosby, OMI, told The Catholic Register in a telephone interview June 19 from his office here.

Bishop Crosby said there is enough money raised so far to pay the third of five payments on July 22. That $3.7-million check will bring the total payout thus far to roughly $9 million. The full amount is scheduled to be paid by July 2007.

The payments are part of a settlement agreed upon a year ago between the diocese and 38 victims of Father Kevin Bennett, who in 1990 was convicted of sexually abusing the young men when they were minors dating back to the 1960s. Bennett spent four years in prison.

To help raise the money, the diocese is suing six insurance companies, which have so far refused to provide any part of the compensation, other than cover the legal costs incurred up to the settlement.

The diocese filed a statement of claim in the Supreme Court of Newfoundland and Labrador on June 7, seeking indemnity from the insurance companies for damages owing to the sexual abuse victims.

The diocese is selling off all its properties and using a separately incorporated agency to purchase many of them back, with the help of donations and loans from Catholics across Canada.

"We sent out letters to various groups and individuals across the country," Bishop Crosby said. "And they have responded remarkably."

So far, he said, enough money has been raised to buy back roughly 100 of the 150 or so properties owned by the Episcopal Corporation of the Diocese of St. George's. That means Catholics of St. George's Diocese will continue to be served by the Roman Catholic Church in many of their existing churches and other facilities.

Bishop Crosby added that, regardless of the outcome of the lawsuit with the insurance companies, the diocese is committed to fulfilling all the terms of the settlement.

"If they (the insurance companies) don't come through, we're still bound by the agreement and we still have to make the payments."

 
 

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