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Article Category: 2007 February
Description: The Roman Catholic Archdiocese of Portland can expect nearly $52 million in insurance money after a federal bankruptcy judge ap
Article originally prepared on : 05 February 2007
PORTLAND, Ore. (AP) ' The Roman Catholic Archdiocese of Portland can expect nearly$52 million in insurance money after a federal bankruptcyjudge approved the first step in the proposed reorganizationplan for the church.
The archdiocese can now sell its insurance coverage back toits insurers for $51.75 million in cash. In exchange, theinsurers walk away with no further liability for any claimsby alleged victims of priest sex abuse.
Advocates for abuse victims have criticized thereorganization plan for the severe limits it appears toplace on potential damage awards for victims who choose togo to trial instead of settling their cases out of court.
But comment on the case has been strictly limited by a gagorder imposed by the two judges who mediated a settlementannounced last December ' U.S. District Judge Michael Hoganand Lane County Circuit Judge Lyle Velure.
The archdiocese had already paid $53 million to settle claimsof sexual misconduct before it declared bankruptcy on theeve of two trials for alleged victims who sought more than$155 million in damages. Most of about 170 claims againstthe church are part of the settlement agreement.
Portland lawyer Erin Olson, who represents several of thevictims, has asked to have the gag order lifted.
Both the Ninth U.S. Circuit Court of Appeals and U.S.Bankruptcy Judge Elizabeth Perris refused to consider therequest until Olson made the request to the judges whoimposed the gag order.
It's not clear whether the gag order may bar Olson fromeven discussing the gag order. She did not return a phonecall on Thursday.
In her request, Olson argued the gag order is anunconstitutional restraint on free speech and lacks theprocedural safeguards normally required before a gag orderis imposed.
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