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	Davenport Diocese Files for Bankruptcy in Sex-Abuse Scandal By Shirley Ragsdale and Erin Jordan Des Moines Register October 10, 2006 http://desmoinesregister.com/apps/pbcs.dll/article?AID=/20061010/NEWS/61010042&lead=1 The Davenport Diocse of the Roman Catholic Church this afternoon filed for bankruptcy, delaying pending clergy abuse lawsuits and putting payment of a $1.5 million jury award to an abuse victim in limbo. "I and the leadership of the diocese believe that, as difficult as this decision is, it provides the best oportunity for healing and for the just and fair compesation of those who have suffered sexual abuse by clergy in our diocese," said Bishop William E. Franklin in a written statement. Franklin has repeatedly threatened to file Chapter 11 bankruptcy for the diocese, which has been hit by a succession of lawsuits that allege church leaders knowingly allowed priests with histories of sexual abuse of children to be moved to new assignments. The Davenport Diocese becomes just the fourth Catholic diocese in the United States to filed for bankruptcy since the Catholic Church's sex-abuse scandal burst into the world spotlight several years ago. The dioceses of Portland, Ore., Spokane, Wash., and Tuscon, Ariz., filed for bankruptcy before Davenport. Franklin first threatened bankruptcy in 2004, just before reaching a $9 million settlement with 37 people who alleged they were abused by diocesan priests. Last month, he said the diocese could not meet the $7 million settlement demand of 15 men who filed lawsuits claiming they were sexually abused by retired Sioux City Bishop Lawrence Soens when he was principal of Regina High School in Iowa City. Franklin again said diocesan appeals would have to consider bankruptcy on Sept. 18, after a jury awarded D. Michl Uhde $1.5 million. Uhde, a former altar boy at Sacred Heart Church in Davenport, claimed he was sexually abused by Monsignor Thomas Feeney. Tuesday, the bishop made good on his treat. "The diocese believes that the way recent state court rulings have gone, there will be no end of claims," said Rand Wonio, the lawyer for the diocese. "Consequently, the diocese had decided to turn over its assets for distribution to all claimants by federal bankruptcy court. This is a much more fair and equitable way compensate all victims." In coming days, more information will be made available and shared regarding the specifics of the bankruptcy process, church officials said. "I ask for your continued prayers for the victims, survivors and their families," Franklin said. " Please pray for the healing in oiur diocese. Let us continue to trust that the Lord will guide us through this difficult time in our history." The announcement was greeted with sadness by abuse victims' attorneys and advocates. "Deny it. Hide it. Fight it. Bankrupt it. That's the bishops' policy regarding allegations of child abuse," said Craig Levien, attorney for Michael Gould and 14 other men who are suing the diocese. Those 15 men allege they were sexually abused by Soens when he was principal at Regina High School. A district judge today dismissed the lawsuit against the school. "This comes as a result of years of sexual misconduct by priests, covered up and enabled by bishops," Levien said. "I don't believe bankruptcy was needed. Where there's a will there is a way to take care of what is and what will remain the responsibility of the diocese forever." "Bankruptcy is not a particularly Christian response," said David Clohessy of St. Louis, national director for the Survivors Network of those Abused by Priests. "Other bishops in Franklin's position have taken insurers to court, sold property or borrowed money to put healing of victims and the church first over protection of the hierarchy."
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