Settlements and bankruptcies in Catholic sex abuse cases have affected several American dioceses, whose compensation payments have totaled in the billions of dollars.
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Estimates by Donald Cozzens
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.
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Payments to victims
Bankruptcies
Portland
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.
Tucson
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.
Spokane
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.
Davenport
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.
San Diego
On February 27, 2007, the Diocese of San Diego filed for Chapter 11 protection, hours before the first of about 150 lawsuits was due to be heard. San Diego became the largest diocese to postpone its legal problems in this way.
Fairbanks
On March 7, 2008, the Diocese of Fairbanks filed for bankruptcy after 130 civil suits filed by Alaska natives who claim to be abused by priests, and other church employees, beginning in the 1950s.
Wilmington
On October 18, 2009, the Diocese of Wilmington filed for bankruptcy as the first of some eight lawsuits (of more than 100 potential) was scheduled to go to trial the next day.
Milwaukee
On January 4, 2011, the Archdiocese of Milwaukee announced that it would be filing for bankruptcy. The church was facing more than 23 lawsuits, and attempts to reach a mediated settlement with victims failed in December 2010. This came two days before the bishop was scheduled to be deposed about these cases, and after the church had refused to release the names or personnel records of the priests accused. The opposing attorney said that the bankruptcy filing was an attempt to delay turning over church records on the cases.
The Milwaukee archdiocese has already paid out over $29 million to settle 200 cases over the last 20 years. They said that these additional cases would cause hefty legal fees that the archdiocese could not afford. The archdiocese has assets of about $98.4 million, but $90 million of that is restricted for specific uses.
Ecclesiastical Province of Saint Paul and Minneapolis
- The Archdiocese of Saint Paul and Minneapolis filed for Chapter 11 bankruptcy reorganization on January 17, 2015.
- The Diocese of Duluth filed for Chapter 11 bankruptcy protection on December 7, 2015.
- On March 3, 2017, the Diocese of Ulm filed for Chapter 11 bankruptcy protection following numerous lawsuits surrounding sex abuse by Catholic clergy in the area. New Ulm follows the Duluth Diocese and the Archdiocese of St. Paul and Minneapolis, thus making Minnesota the first state in the United States of America to have three Roman Catholic dioceses file for bankruptcy protection.
Others
- The Diocese of Gallup, New Mexico filed for bankruptcy protection on November 12, 2013.
- The Diocese of Helena filed for bankruptcy protection in February 2013 to resolve more than 362 claims.
Source of the article : Wikipedia
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