Settlements and bankruptcies in Catholic sex abuse cases

Settlements and bankruptcies in Catholic sex abuse cases have affected several American dioceses, whose compensation payments have totaled in the billions of dollars.

According to Donald Cozzens, "by the end of the mid 1990s, it was estimated that... more than half a billion dollars had been paid in jury awards, settlements and legal fees." This figure grew to about one billion dollars by 2002. Roman Catholics spent $615 million on sex abuse cases in 2007.

Citing monetary concerns arising from impending trials on sex abuse claims, the Archdiocese of Portland (Oregon) filed for Chapter 11 bankruptcy on July 6, 2004, hours before two abuse trials were set to begin, becoming the first Roman Catholic diocese to file for bankruptcy. If granted, bankruptcy would mean pending and future lawsuits would be settled in federal bankruptcy court. The archdiocese had settled more than a hundred previous claims for a sum of over $53 million. The filing seeks to protect parish assets, school money and trust funds from abuse victims; the archdiocese's contention is that parish assets are not the archdiocese's assets. Plaintiffs in the cases against the archdiocese have argued that the Catholic Church is a single entity, and that the Vatican should be liable for any damages awarded in judgment of pending sexual abuse cases.

The Diocese of Tucson filed for bankruptcy in September 2004. The diocese reached an agreement with its victims, which the bankruptcy judge approved June 11, 2005, specifying terms that included allowing the diocese reorganization to continue in return for a $22.2 million settlement.

In December 2004, the Diocese of Spokane, Washington agreed to pay at least $48 million as compensation to those abused by priests as part of its bankruptcy filing. This payout has to be agreed upon by victims and another judge.

On October 10, 2006, the Diocese of Davenport filed for Chapter 11 protection. The decision to file for bankruptcy was driven by many claims which focused on Bishop Lawrence Soens, who had been accused of fondling as many as 15 students during his tenure as priest and principal at Regina Catholic High School in Iowa City during the 1960s. Soens denies the allegations. A judge discharged one suit in October 2006.

...
Wikipedia