Diocese Abuse Settlement Reached, but Attorneys Still Arguing, by Erik Loney, KXLY, August 16, 2007

Diocese Abuse Settlement Reached, but Attorneys Still Arguing

By Erik Loney
KXLY
August 16, 2007

http://www.kxly.com/news/?sect_rank=2§ion_id=560&story_id=13649

Pokane — Spokane-area Catholics have already paid out $10-Million in the Diocese bankruptcy case and now attorneys who litigated the case are asking for their fair share.

Some people are objecting however saying some of those fees may not be justified.

It took more than two years to reach a settlement in the sex abuse case and the diocese faced lawsuits demanding millions of dollars in damages for sexual abuse by Catholic priests. While the settlement over the abuse cases has been reached, attorneys are still arguing over how much they should – or shouldn't – be paid for working on the case.

Bankruptcy court documents reveal the financial cost of the cost of the bankruptcy penny by penny. The documents show that the settlement really cost $51 Million, which breaks down to $48 Million for the settlement plus an additional $3 Million already paid to attorneys before the settlement was reached.

The attorney fees alone cost more than $10 Million, though hat amount will probably climb higher.

Attorneys spent thousands of hours, billing millions of dollars to reach a settlement with the victims of priest sex abuse. Documents show how the Diocese was also billed for things like photocopies and phone calls.

Victims' attorneys also billed for business meals while in Spokane including $1,200 at Niko's, almost $500 at Europa Pizzeria and more than $2,000 for overnight lodging at the Davenport Hotel.

However there is some dispute over some of those fees.

Some of these travel expenses appear to be improper and unjustified according to the US trustee, a federal attorney that monitors bankruptcy fee filings. The trustee has objected to billings by both church and victim attorneys, questioning why firms billed for multiple attorneys to attend the same meeting or look at the same court document.

The trustee also objected to work that did not appear to benefit the case. The trustee is not the only one complaining as attorneys for the church and victims also plan to file objections to each others' bills.

Mediation is expected to take place next month and will attempt to decide if any fees will not be paid. The objections are not unusual and they're over only thousands of dollars and not millions.