August 27, 2005

Bankfrupt diocese could sell churches; Judge in Spokane case says property can be sold to pay abuse victims; bishop plans to appeal

SPOKANE (WA)
King County Journal

2005-08-27
by Nicholas K. Geranios
Associated Press

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, a decision that may prompt other dioceses across the nation to avoid filing for Chapter 11 protection.

Spokane Bishop William Skylstad, who had argued that he did not control and could not sell individual parishes to pay victims, said he will appeal.

``We appeal this decision because we have a responsibility, not only to victims, but to the generations of parishioners ... who have given so generously of themselves in order to build up the work of the Catholic Church in Eastern Washington,'' said Skylstad, who is president of the U.S. Conference of Catholic Bishops.

``Let me assure everyone that ministry will continue in Eastern Washington,'' Skylstad said in a statement.

The Spokane Diocese serves about 90,000 Catholics in 13 Eastern Washington counties, from Metaline Falls on the Canadian border to Walla Walla on the Washington-Oregon line. It filed for Chapter 11 protection in December, listing assets of $11.1 million and liabilities of $81.3 million. Most of the liabilities are sexual abuse claims.

Posted by kshaw at August 27, 2005 08:48 AM