June 28, 2005

Spokane diocese bankruptcy hearing held on victims fund

SPOKANE (WA)
Seattle Post-Intelligencer

By NICHOLAS K. GERANIOS
THE ASSOCIATED PRESS

SPOKANE -- More than a dozen lawyers argued yesterday over the size of the money pot that will be available to alleged victims of sexual abuse by Roman Catholic priests in the Spokane Diocese.

The lengthy hearing in U.S. Bankruptcy Court will produce a key decision in the case of the Catholic Diocese of Spokane, which filed for Chapter 11 bankruptcy protection because of the large number of abuse lawsuits it faces.

U.S. Bankruptcy Judge Patricia Williams said she will rule in the next four to six weeks whether some of the 82 parish churches, 16 parochial schools and other assets in the Eastern Washington diocese could be sold to settle lawsuits.

The Spokane Diocese contends that the Catholic bishop does not own the parish assets, but only holds them in trust for parishioners. Lawyers for the victims disagree.

While questioning diocese lawyer Shaun Cross, Williams said her reading of state law seems to indicate the diocese owns the parishes.

Posted by kshaw at June 28, 2005 07:02 AM