April 22, 2006

Settlement between Spokane diocese, sex victims illegal, judge says

The Seattle Times

By The Associated Press

SPOKANE A federal bankruptcy judge says the nearly $46 million settlement between the Roman Catholic Diocese of Spokane and sex-abuse victims is legally unacceptable.

In a hearing Friday, Judge Patricia Williams said the deal can't be approved because it favors one group of victims over another.

"This settlement violates a rule that requires fair treatment," Williams said, adding that bankruptcy "can't treat people differently."

The diocese filed for Chapter 11 bankruptcy protection in 2004 because of sex-abuse claims and has offered to settle the claims of 75 victims for $45.7 million. More than 100 other claims have been filed since.

Posted by kshaw at April 22, 2006 07:08 PM