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Progress Seen in Diocese Settlement Talks Bankruptcy Case Delayed for a Week By Sandi Dolbee Union-Tribune September 5, 2007 http://www.signonsandiego.com/news/metro/20070905-9999-1n5diocese.html After four years of lawsuits, delays and bankruptcy proceedings, an agreement may be drawing near between the Roman Catholic Diocese of San Diego and about 150 childhood sexual abuse victims. "I believe that they are very close," said Bob Baker, a prominent Catholic who recently helped form Parishioners for the Churches and Schools to represent church members in the diocese's bankruptcy case. Baker, a longtime friend of San Diego Bishop Robert Brom's, said he recently consulted with Brom on structuring some aspects of a settlement. "I know the bishop is trying very hard to settle these cases in the next few days," said Baker, founder of the Bob Baker Auto Group. Lawyers for the diocese and victims declined to be interviewed because of instructions barring them from talking about the mediation, which is being overseen by federal Magistrate Judge Leo Papas. However, the U.S. Bankruptcy Court has postponed until next week a crucial hearing – further signaling that there may be progress toward a deal.
Instead, attorneys are expected to meet behind closed doors tomorrow with Papas, said sources who did not want to be identified as discussing the confidential talks. Details of the new offer were not available yesterday, and more than one person contacted said there are still several issues to be worked out. In March, the diocese offered $95 million to settle roughly 150 cases – about half of what victims' attorneys wanted. In July, the Archdiocese of Los Angeles agreed to pay $660 million to 508 victims, an average of $1.3 million per case, by far the largest settlement since the Catholic abuse scandal became public five years ago. Experts said they would not be surprised by a similar per-case average in the San Diego case. "I think it has to be or the victims won't sign off on it," said Scott Ehrlich, a bankruptcy specialist who teaches at California Western School of Law. In addition to financial compensation, sources said an agreement also would need to include the release of sealed documents concerning the victims' cases. From his discussions with Brom, Baker said any settlement is complicated by the fact that several religious orders involved may not be able to pay their share. Baker also described the bishop as caring deeply about helping victims put this behind them. Victims said yesterday they would welcome an acceptable settlement. "It's long overdue," said Guy Lowry, 48, when asked about a potential deal that could end his and other suits. His allegations date to the 1970s. "It was a fight I didn't think we needed to undertake," Lowry added. "It (a settlement) should have come easily." Victoria Martin, 60, is taking a wait-and-see attitude. "If it's true, it would be wonderful," said Martin, who said she was abused by a priest beginning in 1959. "I stopped believing them a long time ago. This is why we had to go to attorneys – we couldn't have fought them without the attorneys." Observers suggest that a series of legal setbacks has intensified pressure on the diocese to settle the cases. One significant ruling came two weeks ago, when Adler agreed to release 42 lawsuits back to state court for jury trials, said Ehrlich, the law professor. That's about one-third of the lawsuits that were put on hold by the bankruptcy proceeding. Her decision was hailed as a victory by victims and their attorneys who have waited years to get their stories heard and have juries decide what the cases are worth. Also last month, Adler ordered diocese attorneys to come to court and try to persuade her not to throw the bankruptcy case out of court. That hearing, originally set for tomorrow, is postponed until next week. "Hopefully, somebody who has the ear of the diocese is telling them they don't have too many choices," Ehrlich said yesterday. In March, when the diocese made its original offer shortly after filing for bankruptcy, it said half of the money would come from its insurance coverage. "Payment of our portion of this amount will stretch our financial capability to the limit," Brom wrote in a letter inserted into church bulletins after that offer was made. The diocese filed for bankruptcy protection on Feb. 27, just before the first of the lawsuits was scheduled to start trial. Brom defended the move "as the best way available for us to compensate all of the victims of sexual abuse as fairly and equitably as our resources will allow." San Diego was the fifth and largest diocese to seek Chapter 11 reorganization. Three of those dioceses – Spokane, Wash., Portland, Ore., and Tucson – have emerged from bankruptcy. In those cases, once an agreement was reached, the victims and the courts had to approve it. The diocese in Davenport, Iowa, remains in court. Ehrlich yesterday defended the veil of secrecy around the mediation talks. "The secrecy is so that the parties can speak honestly and forthrightly," he said. Many of the accused priests are deceased, since most of the cases are decades old. Brom has repeatedly said that no priest with credible allegations against him is in ministry here. Some lawsuits also include the Diocese of San Bernardino, since that region was part of the Diocese of San Diego until 1978. Yesterday, a spokesman issued a brief response to inquiries about a possible deal in the making. "The Diocese of San Bernardino is continuing to work as efficiently as possible to help find a resolution to the satisfaction of all parties," said the Rev. Howard Lincoln. |
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