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	Spokane Ruling Heartens Western Oregon Parishes Catholic Sentinel [Spokane WA] June 22, 2006 http://www.sentinel.org/articles/2006-25/14780.html A federal judge's ruling that parishes in the Spokane Diocese are not owned by the bishop could have ramifications that reach to Portland and beyond. The June 15 decision by U.S. District Judge Justin Quackenbush overturned U.S. Bankruptcy Judge Patricia Williams' ruling that the bishop owned parish assets, which then could be sold to pay claims against the diocese by people who say they were abused as minors by priests. In Portland at the end of last year, U.S. Bankruptcy Judge Elizabeth Perris ruled in a way similar to Williams, saying that the parishes and the archdiocese are not separate. Quackenbush's opinion has no direct legal effect on Perris' decision, but could influence the federal court that takes up the Archdiocese of Portland's appeal. An alliance of parishioners from western Oregon is elated at the ruling, seeing some hope that their places of worship will not be tallied as part of the bankrupt estate. Doug Pahl, attorney for the Committee of Parishioners, said the parishes are feeling vindication. "The judge's decision recognizes what Oregon Catholics have always taken as an article of faith — that contributions made to parishes are meant for the parish, not the archdiocese, to be held for the benefit of the parish communities and their religious and charitable missions. The Spokane court also recognized what has long been accepted in Oregon — that parishes are distinct from the archdiocese." Spokane Bishop William Skylstad said the ruling should spur mediation efforts to settle clergy child sex abuse claims. "We look forward to the mediation scheduled for this summer, as the parties come together in a spirit of cooperation, working toward a speedy resolution," said Bishop Skylstad, president of the U.S. Conference of Catholic Bishops. He said the church's "constant position" has been that the bishop holds the parish properties in trust. Bishop Skylstad, like Archbishop John Vlazny in Portland, almost always includes an apology to abuse victims whenever he discusses the bankruptcy. Quackenbush's ruling, not yet issued in writing, means that the issue of the assets available for sale has been returned to Williams for re-examination. Quackenbush said that his recognition of parishes as legal entities raised the possibility that those where accused priests worked could be sued individually by claimants. He also urged all sides to quickly settle the claims to curb legal fees that are cutting into diocesan assets. During the hearing, Shaun Cross, lawyer for the Diocese of Spokane, told the court that legal fees involved in the bankruptcy case were now costing the diocese $300,000 per month. At the time of the bankruptcy filing in November 2004, the diocese listed assets of $11.1 million and liabilities of $81.3 million. Most of the liabilities were for child sex abuse claims. The assets did not include parish properties. Lawyers for claimants have said that parish properties would increase diocesan assets to more than $80 million. In late May, Cross said diocesan assets had been reduced to $8 million, as $3 million had been spent on legal fees. The Associated Press quoted James Stang, an attorney for some claimants, as saying that Quackenbush's decision could be appealed but that it might be quicker to work out an agreement that could include a formula by which parishes contribute to a settlement fund. Mediation sessions between claimants and the diocese are scheduled to begin in July. On May 18, Williams ruled against the diocese's proposed $45.7 million settlement with 75 people who have sued the diocese. She said the proposal violated a rule of fair treatment because it neither included the about 100 other claims still under review nor provided for possible future claims. In Portland last week, Pahl argued that parishes should be able to file claims for money from the eventual bankruptcy trust if parishes lose their property in the process. One attorney said that Regis High School, for example, should be entitled to funds if its property is liquidated to pay abuse claims. Perris agreed that parishes and schools would have standing to make claims on the trust.
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