SPOKANE (WA)
KOMO
August 26, 2005
By KOMO Staff & News Services
SPOKANE - A federal bankruptcy judge ruled Friday that all the parish churches, parochial schools and other property of the Catholic Diocese of Spokane can be liquidated to pay victims of sexual abuse by priests.
The decision, expected to have ramifications for dioceses across the nation, is a major defeat for Spokane Bishop William Skylstad, who had argued that he did not control individual parishes and thus they were not available to cover settlement costs.
"It is not a violation of the First Amendment to apply federal bankruptcy law to identify and define property of the bankruptcy estate even though the Chapter 11 debtor is a religious organization," U.S. Bankruptcy Judge Patricia Williams wrote in a 50-page decision.
"The disputed real property constitutes property of the estate," she wrote.