Court Should Move Ahead with Archdiocese's Plan

Milwaukee Journal Sentinel
February 20, 2014

http://www.jsonline.com/news/opinion/court-should-move-ahead-with-archdioceses-plan-b99208588z1-246267021.html

Milwaukee Archbishop Jerome Listecki: The chairman of the archdiocese finance committee says a plan for reorganization is fair.

The plan of reorganization proposed by the Archdiocese of Milwaukee in the organization's Chapter 11 proceedings is the best way to provide care for abuse survivors, while ensuring the archdiocese can continue its spiritual, educational and charitable mission.

The purpose of a Chapter 11 proceeding is not to put the archdiocese out of business but rather to assist in reorganizing its activities and to do what is possible for the claims of its creditors. Not all claims are eligible for compensation, and not all claims are the responsibility of the archdiocese. The archdiocese cannot and should not be responsible for the actions of someone over whom it had no control, nor is it fair to those filing legitimate claims in the proceeding.

Rather, the goal in this case is to financially compensate those with eligible claims as best we can, even though we all know that no amount of money could ever restore what was taken from abuse survivors. At the same time, we must allow the archdiocese to continue its ministry of service and charity. We cannot punish parishes or parishioners who had no part in the abuse.

The plan of reorganization does just what it should. It is fair for abuse survivors because, first and foremost, it provides therapy for as long as they need it and, second, it provides those with eligible claims a financial settlement. The plan is fair for Catholics because it allows the archdiocese to move forward and return its focus to the many good works of the church in this community.

Through parishes, schools and other institutions, Catholics perform countless works of service, education and charity to the benefit of thousands and thousands in our community. Protracting the plan confirmation means only lawyers will continue to win by burning through the limited financial resources that remain.

The responsibility of the Archdiocesan Finance Council is to assist the archbishop of Milwaukee in making decisions about the money entrusted to the church, ensuring they are used for the intent they were given — a type of check and balance for archdiocesan finances. Part of that check and balance is having an annual financial audit by certified public accountants, which is publicly available on the archdiocesan website.

In the last 10 years alone, we've seen the archdiocese exhaust its resources, properties and investments to provide more than $33 million in settlements with abuse survivors. Some will say the archdiocese should take other resources to provide more money for abuse survivors. What they don't say is where that money should come from.

Lawyers want to take money from wherever they can get it. They want to raid the Cemetery Perpetual Care Trust, take contributions from parishes, use other restricted monies legally not available to the archdiocese. Assuring Catholics their donations are used for the purposes they intend is exactly why we have a Finance Council and exactly why archdiocesan finances are an open book.

Changing that now, besides it being illegal, would shake the confidence of Catholics in the pew and severely harm the ministries of those parish communities. It hark back to the day of "Pay, Pray and Obey," when no one dared question the decisions of an archbishop.

In 2006, the Finance Council recommended settlement of lawsuits in California. In 2010, the Finance Council approved a $4.6 million offer to settle additional lawsuits through mediation. Neither were easy decisions. The Finance Council realized it was taking all the resources the archdiocese had available and placing tremendous pressure on the ability of the archdiocese to pay for its operations, including allowing the independent mediation system to continue.

In the previous five years, the archdiocesan operation already had been greatly reduced to pay the costs related to clergy sexual abuse. Properties were sold, services were trimmed, staff was cut by 40% and operating budgets went from $39 million in 2002 to $24 million in 2013.

Our goal in mediation was to avoid Chapter 11 and the lengthy discovery and negotiation process, where only the lawyers are the winners. But when the settlement offer was rejected in December 2010, we knew that no amount of money would ever be enough to satisfy the plaintiffs' lawyers and bankruptcy was the only sensible path.

Now, three years later, instead of abuse survivors receiving a much larger settlement, the money the archdiocese had available in 2010 has been, as we feared, spent on legal and accounting fees. The creditors' attorneys didn't believe our financial statements, and since, in bankruptcy, the archdiocese pays the lawyers on both sides, they began chasing assets that never belonged to the archdiocese, all at our expense. Tellingly, in repeated decisions, the courts have agreed that the creditors' lawyers cannot recover any additional assets.

Filing the plan of reorganization is significant in the Chapter 11. The plan of reorganization puts forth a road map to turn the page and move forward. Most important, the plan provides therapy and support for abuse survivors, an essential element demanded by Archbishop Jerome Listecki from the onset of this proceeding.

It provides abuse survivors a financial settlement and creates a pathway to increase that settlement by pursuing additional insurance monies. It makes sure the archdiocese, indeed the entire Catholic community, never forgets what happened. It provides assurances the church will continue its leadership in establishing safe environment initiatives that educate and train adults and young people.

Lastly, it acknowledges the sins of the past but assures Catholics today that the church is alive and strong. It allows the archdiocese to continue its mission. It's a plan that, as both Finance Council members and Catholics in the pew, we can support. It's a plan that should be confirmed by the court.

Mark G. Doll has been a member of the Archdiocese of Milwaukee Finance Council since 2000 and serves as its current chair. He is the retired chief investment officer of Northwestern Mutual.

The Editorial Board regularly publishes opinions in this space that either disagree with our view or offer a fresh perspective.