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	Catholic Diocese Could File Bankruptcy Today By Mark Sauer Union-Tribune February 27, 2007 http://www.signonsandiego.com/news/metro/20070227-9999-1m27diocese.html Los Angeles – The Roman Catholic Diocese of San Diego could file for bankruptcy protection as early as today, despite the urging of a judge that both sides in the clergy-abuse lawsuits continue working toward a settlement. Nearly six hours of negotiations yesterday failed to produce a deal to settle about 150 lawsuits brought by adults alleging they were molested by priests in incidents dating to the 1950s. Optimism was in short supply as the clock ticked toward tomorrow's scheduled start of the first trial from the lawsuits, most of which were filed in 2003. "The judge seems to feel the gap is not that wide and can be narrowed or eliminated," said Del Mar attorney Irwin Zalkin, who represents about 30 percent of the San Diego plaintiffs. "It's really up to them. I hope for the sake of the victims that Bishop (Robert) Brom thinks long and hard tonight on what he wants to do." Superior Court Judge Anthony Mohr, who mediated discussions between teams of attorneys representing the plaintiffs and Brom, the head of the diocese, summoned everyone into his courtroom at the end of the day. Mohr strongly urged Michael Webb, the diocese's lead counsel, to refrain from filing for Chapter 11 protection, noting that the trial in the first lawsuit could be postponed as settlement talks continued. "We are at the point where I am still slightly encouraged," Mohr said. More discussions could yield a settlement, the judge added, as he encouraged Webb to hold off on his bankruptcy filing. Webb responded that he'd have to take it up "with the bishop and the committee who advises him on these matters." A bankruptcy filing by the diocese would halt litigation of four lawsuits scheduled for trial between now and June 1, as well as nearly 60 others that a judge has declared are ready to proceed. But once a bankruptcy judge is assigned and the process is going, Zalkin said, the cases already assigned for trial could proceed in state court. "As I understand it, the trials could get going again, we could get some verdicts and values for these cases and that would drive the bankruptcy negotiations," he said. "That said, it is in the best interest of everyone to settle this now and get it behind us." Mohr, who was off to a long-planned law conference in the Bay Area, ordered the cotillion of attorneys to return to his courtroom Friday morning and encouraged them to continue negotiating in the meantime. As part of his order, Mohr requested that Brom and "as many named plaintiffs as possible" also be present Friday for the resumption of formal negotiations. Mohr's order would be moot, of course, should the diocese follow through and file for bankruptcy. In that case, litigation would cease in Superior Court and a federal bankruptcy judge would take over. Jury verdicts and settlements in hundreds of clergy-abuse lawsuits in California have resulted in monetary awards ranging from $1.1 million to $1.6 million, according to plaintiffs attorneys. Taking the midrange of that, the cases against the San Diego diocese could be worth a total of about $200 million. Mark Sauer: (619) 293-2227; mark.sauer@uniontrib.com
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