Diocese Faces $200 Million in Claims of Sex Abuse
10 News [San Diego CA]
February 27, 2007
http://www.10news.com/news/11123877/detail.html
The Catholic Diocese of San Diego announced Tuesday that it is filing for Chapter 11 bankruptcy, following failed settlement negotiations in lawsuits alleging sex abuse by priests.
"We put money on the table that would have stretched our financial capability to the limit, but demands were made which exceeded the financial resources of both the diocese and our insurance carrier," San Diego Bishop Robert H. Brom said in a statement released Tuesday afternoon.
"We have decided against litigating our cases because of the length of time the process could take and, more importantly, because early trial judgments in favor of some victims could so deplete diocesan and insurance resources that there would be nothing left for other victims," he said.
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| Diocese Of San Diego Announces Bankruptcy Plans |
Bankruptcy is the "best way available for us to compensate all of the victims as fairly and equitably as our resources will allow," Brom added.
More than 150 San Diego lawsuits alleging sexual abuse by the church were filed in 2003 after the state Legislature temporarily lifted the legal statute of limitations, allowing the cases to go forward.
The diocese announced last week that it was considering filing for bankruptcy protection rather than paying up to $200 million in claims stemming from the lawsuits.
Members of the group Survivors Network of those Abused by Priests protested, arguing that the cases should go to trial.
In a statement, Mary Grant, SNAP's western regional director, called the bankruptcy decision "morally bankrupt."
"This is a morally bankrupt move by a self-serving bishop who's afraid to face tough questions about coddling and concealing pedophile priests," Grant said. "Brom is putting his own self-preservation ahead of the good of devout Catholics, wounded victims and vulnerable kids."
Brom said the decision to file for bankruptcy reorganization is not a "cop-out," but a "sincere effort to face up to our responsibility."
He also pledged to release the names of the accused.
"At the same time, we will be disclosing the names of those accused, about whom there is certitude regarding their abuse, as well as the extent of their abuse, and we will verify that no known abuser is functioning in ministry," the bishop said.
Four other Catholic dioceses in the country have sought bankruptcy protection as a result of sexual abuse claims.
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