New Clergy Abuse Cases Surface, by Annysa Johnson, Milwaukee Journal Sentinel, February 11, 2011

New Clergy Abuse Cases Surface

By Annysa Johnson
Milwaukee Journal Sentinel
February 11, 2011

http://www.jsonline.com/features/religion/115821759.html

The Catholic Archdiocese of Milwaukee, which faces more than a dozen civil fraud lawsuits over its handling of clergy sex abuse cases, filed for Chapter 11 bankruptcy protection in January. As the case proceeds, we'll have updates, analysis, documents and more.

Dozens of people have come forward since the Archdiocese of Milwaukee filed for bankruptcy protection last month alleging they were sexually abused by priests as children, attorneys for victims said Thursday.

Among the accused are priests not previously identified publicly as offenders, according to victims' lawyers and the archdiocese, including one retired cleric who is now restricted from ministry pending an investigation by the church.

The new complaints mark the beginning of what is expected to be an expansion of the creditors pool - individuals and organizations that would be paid as part of any bankruptcy settlement.

Such expansions are typical in Chapter 11 proceedings, which serve in most cases as a "last call" for claims against a debtor.

While it's impossible to predict the final size of the pool, six of the seven previous bankruptcies by Catholic Church dioceses involved settlements with 140 to 300 claimants.

Jeff Anderson, the St. Paul, Minn., attorney representing local victims, said he expects Milwaukee to be no different.

"When I look at the size of the Archdiocese of Milwaukee and the numbers of offenders who have been given cover?.?.?.?I have no doubt that the number of survivors is in the thousands," Anderson said. "How many will be able to come forward, I can't say, but it will be in the hundreds."

Anderson's office said it has spoken with at least 50 new potential victims, and Peter Isely of the advocacy group Survivors Network of Those Abused by Priests said he's fielded two dozen calls.

Amy Peterson, victim assistance coordinator for the archdiocese, said she's heard from fewer than 10. All but one of those cases involved priests who already appear on the archdiocese's online list of those with credible allegations of abuse against them, spokeswoman Julie Wolf said.

The claim involving the previously unidentified priest was turned over to the Milwaukee County district attorney's office, which declined to prosecute because the statute of limitations had lapsed, she said. It remains under internal investigation and will be taken up by the archdiocese's review board, she said.

More claims likely

Based on a review of bankruptcy cases across the country, the new allegations may be just the beginning. Bankruptcy law requires the debtor to make a good faith effort to notify all potential claimants, a process that can require expensive local and national advertising campaigns, outreach to schools and parishes, and even personal pleas by the bishop.

In return, bankruptcy law gives the debtor a "bar date" or a deadline for victims to file for compensation.

Determining the size of the pool and the bar date is just one of the many negotiations that go on during the bankruptcy, according to legal experts.

"It's a game of chicken. The church will want to keep the claim pool as small as possible?.?.?.?and the bar (date) as early as possible," said John Pottow, a professor of law at the University of Michigan, specializing in bankruptcy.

But if the window is too narrow the church risks a constitutional challenge that would allow for additional claims later, he said.

Generally, victims benefit financially from a smaller pool - fewer people to share in the settlement, he said. However claimants' lawyers might push to broaden the pool if they're paid per claim "or if they just believe it's the right thing to do," Pottow said.

The number of cases already settled by the archdiocese through its pastoral mediation program - about 190 to date - could reduce the size of the claimant pool, according to attorneys in church bankruptcy cases elsewhere.

Milwaukee's settlement numbers are higher than others that filed bankruptcy, they said, possibly because of a Wisconsin Supreme Court ruling that barred victims from filing lawsuits for more than a decade.

"People go to the church to pay for counseling or other help if they can't go to the courts," said Portland, Ore., attorney Kelly Clark, who represented victims in the bankruptcy there.