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	Judge: Diocese Case Will Remain in Bankruptcy Court By Teri Figueroa North County Times August 21, 2007 http://www.nctimes.com/articles/2007/08/21/news/sandiego/20_04_348_20_07.txt San Diego (CA) — A federal judge Monday rejected a bid by the Catholic Diocese of San Diego to take over its case from federal bankruptcy court — a decision that could help clear the way for sexual abuse cases to resume. The cases have been on hold since Feb. 27, when the diocese filed for bankruptcy on the eve of the start of the trial in the first of several lawsuits filed by people alleging that priests sexually abused them. Legal battles have been playing out within the bankruptcy court since then. Earlier this month, the diocese asked San Diego Chief U.S. District Judge Irma Gonzalez to take jurisdiction over the cases. Attorneys for the alleged sex abuse victims contended in court documents that the diocese was trying to avoid what it believed was a bankruptcy judge's "inclination" to send the cases back to state court for trial. In a decision issued Monday, Gonzalez found no legal reason to pull the case out of bankruptcy court. The case will stay in the hands of Bankruptcy Judge Louise DeCarl Adler, who is considering a request to let the sexual abuse cases head to trial. Gonzalez left open the possibility for the diocese to renew its request, but no sooner than November. Diocese spokesman Rodrigo Valdivia did not immediately respond to a request for comment Monday afternoon. Irwin Zalkin, who is representing some of the plaintiffs in the sex abuse cases, said Monday that Gonzalez's decision will "help this case get where it needs to be" — either get it resolved or get it to trial. Just how much it will cost the diocese to settle the sex abuse suits in civil court is a big issue in the bankruptcy proceedings. More than 140 plaintiffs who claim they were abused are looking for settlements from the diocese totaling about $200 million. In its bankruptcy plan, the San Diego Diocese is offering about $600,000 per victim, according to court documents. Settlements in Southern California cases involving sex abuse at the hands of Catholic priests have averaged more than $1 million per victim. The diocese argued in court documents several legal reasons for moving the case to the U.S. District Court, including that the district court has jurisdiction to decide personal injury cases and to estimate the value of claims, while the bankruptcy court does not. The diocese argued in court documents that, if successful, the alleged victims efforts to return the cases to state courts for trial would result in "serial litigation," "dissipate" the diocese's resources, and delay the resolution of the alleged victims legal claims. Attorneys for the alleged victims fought the diocese's request that Gonzalez yank the bankruptcy case out of federal bankruptcy court and into U.S. District Court. Victims' attorneys argued the diocese was "venue-shopping" and were simply trying to "dodge" the possibility that Adler would clear the way for 42 of the sexual abuse trials to begin. The attorneys for the alleged victims also argued the diocese is trying to avoid the sexual abuse lawsuits because the victims seek settlements "well above the amount it (the diocese) wants to pay." Adler is set to hear arguments on Thursday regarding the plaintiff's request to let them resume the sexual abuse cases in state court. The San Diego diocese, which covers San Diego and Imperial counties, has 98 churches, runs 50 schools and has nearly 1 million parishioners. — Staff writer Scott Marshall contributed to this report. Contact staff writer Teri Figueroa at (760) 631-6624 or tfigueroa@nctimes.com.
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