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	Attorney: Bankruptcy Worked for Tucson Diocese By Dustin Lemmon Quad-City Times [Iowa] October 22, 2006 http://www.qctimes.com/articles/2006/10/22/news/local/doc453afef9b179c163024668.txt Lynne Cadigan admits she doesn't like the Roman Catholic church. But Cadigan, the attorney who represented alleged victims of clergy sexual abuse in Tucson, Ariz., can't deny that the church's decision to file bankruptcy there helped her clients. Cadigan represented 33 victims in claims against the Tucson Diocese, which filed for bankruptcy in 2004. At first she questioned the diocese's decision. "We were very skeptical and we initially thought the bankruptcy was just one more way to scam the victims," she said. "Financially and emotionally it was a good tool to heal the (victims). I don't like admitting that, but it's true." On Oct. 10, the Diocese of Davenport became the fourth in the country, including Tucson, to file bankruptcy to handle sexual abuse claims. The decision came after abuse victim Michl Uhde won a $1.5 million decision against the diocese at a jury trial in Scott County District Court. The Tucson case proceeded to bankruptcy before any cases ever went to trial. Local victim support groups and the attorneys representing the victims have criticized the Davenport Diocese's decision. Representatives of the church have said they hope to follow the bankruptcy model established by the Tucson Diocese, which came out of bankruptcy in September 2005. Cadigan said she thinks bankruptcy could work for the Davenport Diocese since, like Tucson, it faces fewer claims than the dioceses in Portland, Ore., and Spokane, Wash., which are still tied up in bankruptcy court two years after filing. There are 25 known claims and up to 45 additional claims by victims locally. "In Tucson, we had a very small number of victims because we had a very strict statute of limitations," she said. "We had a diocese that turned over all of the records. We had a diocese that disclosed everything." Local victims are critical of the Davenport Diocese for not disclosing more information, including claims of abuse and financial records, and for filing bankruptcy and setting a bar date for filing claims, which the courts recently set for Feb. 6, 2007. Craig Levien, a Davenport attorney representing local victims, said the plaintiffs will make an effort to push the bar date back as far as possible. Representatives for the Diocese of Davenport have said they would like to set up a fund similar to a $5 million account the Tucson Diocese established for future victims. "We don't expect a refund," said Richard Davidson, a Davenport attorney representing the diocese. "We aren't expecting to get any money back." Fred Naffziger, a professor of business law at Indiana University-South Bend who has been observing church bankruptcies since 2004, said the bankruptcy proceedings can be challenging for church leaders because they aren't used to reporting to someone else. "A bishop isn't used to having to go into court and say 'Judge, pretty please, can I do this?' " Naffziger noted. The judge "might say they can't borrow money." Representatives of the Survivors Network of those Abused by Priests, or SNAP, have said the Diocese of Davenport should give its money to victims instead of using it to defend itself in court. "The money that they're willing to spend in bankruptcy court could be put to some good use if only they used it to help survivors," said Iowa SNAP member Ann Green of DeWitt. "Most of the men weren't looking for financial gain but were looking for the truth." In the Tucson case, Cadigan said victims were satisfied with an apology they received from church leaders. She said she set her personal feelings aside and did what was best for the victims, who were content to get compensation and an apology before moving on. "My duty as a lawyer is to do what my clients want," she said. "I don't have a national agenda. I don't work for SNAP." Cadigan said she wishes the attorneys and victims in Davenport luck in successfully resolving the bankruptcy. She said it makes sense for the church, which could face large sums in punitive damages if each case goes to a jury. "Filing the bankruptcy clearly helps the diocese if they don't have a lot of property," she said. DATES TO CIRCLE Upcoming dates involving the bankruptcy filing by the Diocese of Davenport. Nov. 8: Creditors hearing at the Davenport federal courthouse. Feb. 6, 2007: Deadline for abuse victims to file claims with the court. Dustin Lemmon can be contacted at (563) 383-2493 or dlemmon@qctimes.com.
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