May 19, 2006

Judge throws out settlement with Spokane diocese

SPOKANE (WA)
Seattle Post-Intelligencer

By JOHN K. WILEY
THE ASSOCIATED PRESS

SPOKANE -- A federal judge Thursday rejected a $45.7 million settlement negotiated with victims of sexual abuse in the bankruptcy of the Roman Catholic Diocese of Spokane.

U.S. Bankruptcy Judge Patricia Williams threw out the settlement during a telephone conference hearing. The judge strongly urged the dozens of lawyers representing the diocese, victims, parishes and other parties to enter into mediation.

Shaun Cross, a Spokane lawyer representing the diocese, said portions of the settlement, including a schedule of payment for victims, would be kept in a final bankruptcy plan.

"I think the elements of the settlement we proposed with the 75 victims still have merit. The judge clearly found concerns with some elements," he said.

Posted by kshaw at May 19, 2006 07:23 AM