Posted on 08/26/2005 7:30:53 PM PDT by Salvation
Bankruptcy judge rules parish assets available to victims
The Associated Press
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SPOKANE, Wash. A federal bankruptcy judge ruled today that all the parish churches, parochial schools and other property of the Catholic Diocese of Spokane can be liquidated to pay victims of sexual abuse by priests.
The decision, expected to have ramifications for dioceses across the nation, was a defeat for Spokane Bishop William Skylstad, who had argued that he did not control individual parishes and thus they were not available to cover settlement costs.
"It is not a violation of the First Amendment to apply federal bankruptcy law to identify and define property of the bankruptcy estate even though the Chapter 11 debtor is a religious organization," U.S. Bankruptcy Judge Patricia Williams wrote in a 50-page decision.
It is also proper to use state law, rather than church law, to determine the size of the estate, Williams said.
The bishop holds legal title to church property in trust for the diocese, and "the disputed real property constitutes property of the estate," she wrote.
Barbara Blaine, president of the Survivors Network of those Abused by Priests, said from Chicago that she hoped the ruling would prompt leaders of other dioceses to stop fighting victims.
"I'm grateful the church legal hardball and hairsplitting legal maneuvers didn't work," Blaine said.
She said church leaders "have not been pastoral and it would take so little to really help the victims. They spend more energy fighting victims ... rather than embracing them."
Leaders of the Spokane Diocese did not immediately return telephone calls seeking comment.
Skylstad, head of the U.S. Conference of Catholic Bishops, had argued that only about $10 million in assets directly under his control was available to settle lawsuits brought by 58 victims of sexual abuse. The cases forced the Spokane Diocese to declare bankruptcy last year.
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The Spokane case is the first in which the issue of parish ownership has been decided by a judge.
Last month, in the bankruptcy case of the Archdiocese of Portland, Ore., lawyers for members of 124 parishes argued that they, and not the archdiocese, owned $600 million in church assets and property. More than 240 abuse claims are pending against the Archdiocese of Portland, seeking at least $400 million in damages. The archdiocese has said it has only about $19 million in assets.
In the only other bankruptcy case involving a diocese, a federal judge last month approved a reorganization plan for the Roman Catholic Diocese of Tucson, paving the way for it to become the first in the nation to emerge from bankruptcy.
The Spokane Diocese filed for Chapter 11 protection in December, listing assets of $11.1 million and liabilities of $81.3 million. Most of the liabilities are sexual abuse claims.
Williams listened to a full day of arguments on the assets question in late June.
Lawyers for victims said church leaders must be punished for allowing pedophile priests to prey on children for so long. Advocates for parishioners argued that they should not be punished for the depredations of a few deviant priests.
The Spokane Diocese serves about 90,000 Catholics in 13 Eastern Washington counties, from Metaline Falls on the Canadian border to Walla Walla on the Washington-Oregon line.
The nationwide sex-abuse scandal was sparked by revelations that many Catholic bishops had moved guilty priests among parish assignments without warning parents or police. Hundreds of accused clergy have been removed in the past three years. Abuse cases so far have cost the church about $1 billion.
Not good news in my opinion.
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Parishoners need to speak up and save their Church. The assets of the the Church belong to the Church - it's people not the Bishop. I'm truly sorry that so many were harmed by abuse but this doesn't punish the abusers it punishes the innocent.
This is scary. All these schools are gone, so a couple of Priests could get their rocks off on young boys.
This is how the left works. Protect us from Catholic Schools, but do nothing about the madrasses forming the next generation of Islamist terrorists right here under our noses..
But this horror was brought on us by the faith-less-ness of our bishops in many areas of administration and the exercise of episkope. I won't go on at length on this but...
Bishop Skylstad should resign his see and resign his Presidency of the USCCB.
I have no hope of this happening apart from Divine Mercy or a special grace through the triumph of Heart of the Immaculata.
Diocese of Yakima is the only one in Washington to have had positive growth statistics of late.
Not good. My family attends a Traditional Mass within the Spokane Diocese when we can.
I just heard this on the news. It's infuriating!!! So many families will pay for the mistakes of weak men.
It's beyond shameful and disgusting that this behavior has gone on unchecked for so long. Now, yes, the innocent have to pay for the sins of the guilty. The church will survive, and let us all pray and remain vigilant so this never ever happens again. Bishops know they can't sweep it under the rug anymore.
Scary!
I definitely side with the victims, but no amount of financial settlement will heal their souls. They deserve something, but like in other lawsuits, sometimes things tend to go over the top and damage awards seem to be excessive, generally.
Who really needs a church where the clergy molests children?
I think that no one needs it.
**this doesn't punish the abusers it punishes the innocent.**
My thoughts, exactly.
Not only the schools -- other property too!
Yes, it is VERY scary!
**Protect us from Catholic Schools, but do nothing about the madrasses forming the next generation of Islamist terrorists right here under our noses.**
Excellent point! Go figure!
**Bishop Skylstad should resign his see and resign his Presidency of the USCCB.**
I'll pray!
It is really sad!
Get on your knees and start praying!
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