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	Judge Oks Davenport Diocese Bankruptcy Plan By Gregg Hennigan The Gazette April 30, 2008 http://www.gazetteonline.com/apps/pbcs.dll/article?AID=/20080430/NEWS/214544681/1006/news DAVENPORT — A judge this afternoon approved the Roman Catholic Diocese of Davenport's bankruptcy reorganization plan, paving the way for clergy sex abuse victims to be paid and for the diocese to accept responsibility for the scandal. The decision by Judge Lee Jackwig of the U.S. Bankruptcy Court for the Southern District of Iowa was the last major hurdle to clear for the $37 million settlement between the diocese and more than 150 alleged abuse victims Those with claims against the diocese will have three options: They can take $10,000 and do nothing more; they can go before an arbitrator, who will weigh the circumstances of their cases and use a matrix to assign values to the claims; or they can go through the court system. The expectation is that most people will use the matrix system because the payouts likely will be higher. A portion of the settlement, $2.5 million, will be set aside for future claims. The diocese filed for Chapter 11 bankruptcy protection in October 2006, saying it did not have the money to settle the claims stemming from accusations of sex abuse by diocese priests dating back several decades. It had already paid nearly $10.7 million to 45 other victims since 2004. Davenport is one of just six dioceses in the United States to file for bankruptcy because of the priest abuse scandal that has rocked the Catholic Church this decade. By filing for bankruptcy, the Davenport diocese — with 105,000 parishioners in 22 counties in southeast Iowa — was able to settle all claims against it. The plan also releases all of its 83 parishes and 23 schools from liability for abuse that happened before the bankruptcy filing. Alleged abuse victims have filed 162 claims, although six came late and it's unclear whether they will be counted. Attorneys say a handful of claims likely will be challenged as illegitimate. The diocese and the committee representing abuse victims negotiated a $37 million settlement in November that calls for the diocese to pay $17.5 million, with the other $19.5 million coming from its insurance carrier, Travelers Cos. of St. Paul, Minn. Most of the money will go to the victims, minus attorneys fees and other expenses. The settlement also includes 17 non-monetary terms demanding the diocese acknowledge the abuse and take measures to prevent similar acts in the future, which victims have said were more important than the money. Contact: gregg.hennigan@gazettecommunications.com
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