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Diocese Attorney Urges Judge to Allow Normal Operations 10 News [San Diego CA] March 1, 2007 http://www.10news.com/news/11149018/detail.html An attorney for the Catholic Diocese of San Diego convinced a bankruptcy judge Thursday to allow the diocese to continue normal day-to-day operations while working its way through Chapter 11 reorganization. San Diego Bishop Robert H. Brom announced the bankruptcy filing Tuesday when talks aimed at settling lawsuits alleging abuse by priests failed. Brom said the Chapter 11 reorganization would enable the diocese to settle all sex-abuse claims fairly. "This case is of enormous importance to the community," said Bankruptcy Judge Louise DeCarl Adler at the start of Thursday's hearing. The judge said figuring out how the Catholic Church can resolve pending sex-abuse cases will be "a bit of a journey." Four other Catholic dioceses in the country have sought bankruptcy protection as a result of sexual abuse claims. Adler said it took less than a year for one diocese to emerge from Chapter 11 protection, while others have taken up to four years. Susan Boswell, a bankruptcy attorney for the San Diego diocese, asked the judge in a series of six motions to allow the diocese to continue with its normal operations so it can pay its bills and work toward a settlement. Attorneys for some of the abuse victims challenged how much property the San Diego diocese owns and how much insurance it carries. In court documents, the diocese said it owns about $96 million in real estate. Adler set a further hearing for next Wednesday and another hearing for April 4. "We've (gone) through some of the nuts and bolts, and now we've got to figure out where we're going," the judge said. She urged both sides to think of ways to move as quickly as possible toward a mutual resolution. More than 150 San Diego lawsuits alleging sexual abuse by the church were filed in 2003 after the state Legislature temporarily lifted the legal statute of limitations, allowing the cases to go forward. A trial was supposed to start in San Diego Wednesday. The diocese announced last week that it was considering filing for bankruptcy protection rather than paying up to $200 million in claims stemming from the lawsuits. Members of the group Survivors Network of those Abused by Priests protested, arguing that the cases should go to trial. Related: Abuse Victims Want Diocese to Settle Sex Abuse Cases |
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