Archdiocese May Proceed in Effort to Toss 11 Sex Abuse Claims

By Annysa Johnson
Milwaukee Journal Sentinel
October 24, 2014

http://www.jsonline.com/news/religion/archdiocese-may-proceed-in-effort-to-toss-11-sex-abuse-claims-b99376866z1-280237652.html

The Archdiocese of Milwaukee can proceed with its efforts to throw out 11 sex abuse claims filed in its ongoing bankruptcy, a judge ruled this week.

U.S. Bankruptcy Judge Susan V. Kelley on Wednesday refused to stay motions filed by the archdiocese arguing for the dismissal of those claims, over the objections of victims' attorneys.

Jeffrey Anderson, whose firm represents most of the 575 who have filed sex abuse claims in the case, pleaded with Kelley to stay the motions, saying the archdiocese's efforts to "pick off" survivors exacts an emotional toll. Kelley rejected that, saying she is sympathetic to the pain of victims but also is required to apply the law in the bankruptcy case.

"I am sensitive — and you know that I am, attorney Anderson — to the plight of the survivors.... But at this point, I have to apply the law," she said.

The archdiocese filed for Chapter 11 bankruptcy protection in January 2011 to address its mounting sex abuse claims.

Because state courts had blocked negligence lawsuits against the archdiocese as a violation of its free exercise of religion, the bankruptcy claims assert that the archdiocese defrauded victims by moving abusive priests from post to post without telling families that their children were in danger.

The archdiocese has filed motions objecting to all of the 575 claims, alleging they are not eligible for compensation for a variety of legal reasons. And the motions for summary judgment on the 11 claims address some of those issues.

Archdiocese attorney Frank LoCoco emphasized that the church is not disputing the victims' abuse, only that the law does not require the church to compensate them as part of the bankruptcy.

Those cases involve:

¦ Two victims whose previous lawsuits against the archdiocese were dismissed with prejudice, meaning they cannot refile those allegations in court. Victims' attorney Michael Finnegan argued that the previous dismissals were based on statutes of limitations, not the merits. But Kelley suggested that she is inclined to dismiss those, saying, "The law says if a case is dismissed with prejudice, it should not be filed in this bankruptcy case."

¦ One victim abused by a former therapist and director of what is now Catholic Charities of the Archdiocese of Milwaukee in the 1960s and '70s, and another abused by two religious order Capuchins — a priest and a brother — at St. Lawrence Seminary in Mt. Calvary in the 1970s. The archdiocese argues that Catholic Charities and religious orders like the Capuchins are separate legal entities whose employees are not its responsibility. Victims' attorneys argue that such organizations cannot operate in the 10-county archdiocese without the consent of the archdiocese, making it effectively responsible for their actions.

¦ Victims of seven archdiocesan priests — all but one dead or defrocked and named on the archdiocese's online list of abusers. The archdiocese argues that the seven victims were the first to accuse these priests and so, with no prior allegations of abuse, it cannot be held liable for fraud. Finnegan said his firm would produce evidence showing the archdiocese knew these priests were a problem — and about the abuse crisis overall — and did not act to protect these victims.

A handful of other claims have been dismissed in the bankruptcy. One is pending on appeal. Most of the claims were filed under seal, so most of the victims' identities have not been made public.

Two leaders of the advocacy group Survivors Network of those Abused by Priests have now acknowledged that their claims have been dismissed.

In March, a federal judge dismissed a claim filed by John Pilmaier, one of about 90 individuals with prior settlements who filed claims in the bankruptcy alleging they were misled by the archdiocese during their settlement talks. Pilmaier, who is SNAP's Wisconsin director, was molested by the now-defrocked David Hanser as a 7-year-old student at St. John Vianney School in Brookfield in 1977. He was paid $100,000 by the archdiocese in 2007.

Peter Isely, SNAP's Midwest director and an internationally known advocate for victims of sexual abuse, confirmed for the first time Thursday that he was one of the unidentified victims whose claims were dismissed by Kelley early on in the case. Without naming him, Kelley ruled that Isely's claim was barred by the statute of limitations for fraud.