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	Hearing Delayed on Archdiocese Property Bankruptcy - the Judge Doesn't Explain the Delay in the Issue Related to the Sex Abuse Cases By Ashbel S. Green The Oregonian September 21, 2006 http://www.oregonlive.com/news/oregonian/index.ssf?/base/news/1158801915131510.xml&coll=7 Without explanation, a federal judge postponed a Wednesday hearing on a hotly disputed issue in the Portland Archdiocese bankruptcy -- who owns parish property. It's the second major postponement in the bankruptcy since mediation talks started last week. On Friday, U.S. District Judge Michael Mosman delayed until December a highly anticipated trial involving allegations of priest sexual abuse. Because of a gag order, none of the attorneys or parties involved in the bankruptcy can discuss whether the postponements indicate that mediation is making progress. The two mediators -- U.S. District Judge Michael R. Hogan and Lane County Circuit Judge Lyle Velure -- are known for getting the toughest cases to settle. Portland in 2004 became the first Catholic diocese in the country to seek bankruptcy protection from priest abuse litigation. In the two years since, lawyers for the archdiocese and those who claim they were abused by priests have made little if any progress toward settling. Each side has offered a widely different plan to bring the bankruptcy to a close. Attorneys have billed $14.7 million since 2004. The 2004 bankruptcy froze the lawsuits in their tracks. About 125 claims of sexual abuse are pending, according to attorneys who represent them. Earlier this year, U.S. Bankruptcy Judge Elizabeth Perris gave the go-ahead for trials to begin. She said verdicts would help the two sides reach agreement on how money is needed to settle. The first trial, originally scheduled to begin Oct. 10, involves accusations of sexual abuse by the late Rev. Maurice Grammond, Oregon's most widely accused priest who worked in Seaside, Oakridge and Portland, among other places. The plaintiff seeks $135 million, most of it in punitive damages. Although a handful of priest sexual abuse suits have gone to trial around the country, none in Oregon has reached a jury. On Tuesday, Mosman postponed a hearing on whether the archdiocese or the parishes own church property. Perris ruled earlier that 10 test properties belonged to the archdiocese, which says it merely holds them in trust for the parishes. Mosman is overseeing the archdiocese's appeal of Perris' ruling. A federal judge in Spokane earlier this year came to the opposite conclusion, agreeing that the diocese held parish property in trust for the parishes and could not sell it to pay sex abuse victims. That ruling is not binding on Mosman. Mosman delayed the oral arguments to Oct. 25. The trial is scheduled to begin Dec. 11. Mediation began last week. On the 16th floor of the Mark O. Hatfield U.S. Courthouse, a sign on the door says: private mediation, no press allowed. There appeared to be no activity on Tuesday or Wednesday morning. Steve Woodward of The Oregonian staff contributed to this report
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