| The Catholic Diocese of Spokane has agreed to settle molestation claims against priests on Thursday for $48 million as part of a Chapter 11 reorganization plan. Victims and a federal bankruptcy judge must still approve the deal, however, Judge Gregg W. Zive of the Nevada Bankruptcy Court, who is mediating the settlement, said he believes the settlement would provide "closure and allow to move forward and continue with the healing process." The diocese filed for Chapter 11 in 2004 stating that the sexual abuse claims far exceeded its $11 million in assets. Last May, a $45.7 million settlement offered by the diocese was rejected by the US Bankruptcy Court for the Eastern District of Washington because it only covered 75 of approximately 185 abuse complaints against the diocese. The Spokane diocese came up with this plan in order to avoid bankruptcy and also offer succor to people by allowing them "closure" for their sufferings. Around 150 claims have been filed against the diocese and this settlement provision gives the Church a chance to avoid insolvency as well. The Archdiocese of Portland filed for Chapter 11 in 2004, and the dioceses of Tuscon, Spokane, and Davenport soon followed suit in the wake of hundreds of sexual abuse lawsuits against clergy. Last month, the Portland archdiocese filed a new bankruptcy plan including a $75 million settlement of the sexual abuse claims. Federal bankruptcy Judge Gregg Zive said that the settlement would allow the victims to gain some "measure of closure and allow them to move forward and continue the healing processâ€. However the plan still needs to be approved by the victims as well as another judge. Zive said that the money would be put up by six insurance companies and would also be collected through selling off the bishop's office building. However he added that the specific amount to be disbursed to specific victims was not yet determined. The judge also added that the settlement would allow the diocese “to continue its ministry and to begin its own journey of renewal, healing and hopeâ€. It may be recalled that the Spokane diocese bankruptcy protection in 2004 after the claims against it increased to $81.3 million. |
Legal News RSS Feed
