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Article Category: 2006 December
Portland archdiocese files new bankruptcy plan reflecting $75M sex abuse settlement
Description:
Article originally prepared on : 20 December 2006
http://jurist.law.pitt.edu/paperchase/2006/12/portland-archdiocese-files-new.php
The US Roman Catholic Archdiocese of Portland [diocesan website; diocesan website on clergy abuse] has filed a new bankruptcy plan with the US Bankruptcy Court anticipating a payment of $75 million to settle[JURIST report] outstanding sex abuse claims against some of itsclergy. Under the plan submitted Monday, $40.7 million will go to 143people, another $13.75 million will be allocated to cover claims byanother 26 individuals who may yet sue or settle, and $20 million willbe set aside as a contingency fund to cover any future claims.Insurance will cover over $50 million, with the remainder coming fromliquidation of certain diocesan holdings not including parish or schoolproperty. Reuters has more
The Portland archdiocese, which filed for Chapter 11 [JURIST report; text,PDF] in 2004, was the first one to file for bankruptcy in the face ofcivil litigation over sex abuse claims. Since then, the dioceses ofTuscon, Spokane, and Davenport have also filed for Chapter 11protection in the wake of hundreds of sexual abuse lawsuits [JURIST news archive] filed against the clergy. In June, a federal judge allowed[JURIST report] a sexual abuse lawsuit against the Portland archdioceseto continue, rejecting the Vatican's bid to dismiss the suit for lackof jurisdiction. The lawsuit, filed in 2002[AP report], alleged that the Vatican, the Archdiocese of Portland andthe archbishop of Chicago conspired to protect a priest by transferringhim from city to city, even though the church knew he had a history ofcommitting sexual abuse. Earlier this month, the Archdiocese of LosAngeles settled [JURIST report] 45 sexual abuse lawsuits for $60 million.
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