Settlements_and_bankruptcies_in_Catholic_sex_abuse_cases

Settlements and bankruptcies in Catholic sex abuse cases

Settlements and bankruptcies in Catholic sex abuse cases

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Settlements and bankruptcies in Catholic sex abuse cases have affected several American dioceses, whose compensation payments have totaled in the billions of dollars.

Main article: Catholic sex abuse cases

Estimates by Donald Cozzens

According to Donald Cozzens, "by the end of the mid 1990s, it was estimated that... more than half a billion dollars had been paid in jury awards, settlements and legal fees." This figure grew to about one billion dollars by 2002.[1] Roman Catholics spent $615 million on sex abuse cases in 2007.[citation needed]

Payments to victims

More information Date, Diocese ...

Bankruptcies

Portland

Citing monetary concerns arising from impending trials on sex abuse claims, the Archdiocese of Portland (Oregon) filed for Chapter 11 bankruptcy on July 6, 2004, hours before two abuse trials were set to begin, becoming the first Roman Catholic diocese to file for bankruptcy. If granted, bankruptcy would mean pending and future lawsuits would be settled in federal bankruptcy court. The archdiocese had settled more than a hundred previous claims for a sum of over $53 million. The filing seeks to protect parish assets, school money and trust funds from abuse victims; the archdiocese's contention is that parish assets are not the archdiocese's assets. Plaintiffs in the cases against the archdiocese have argued that the Catholic Church is a single entity, and that the Vatican should be liable for any damages awarded in judgment of pending sexual abuse cases.[5]

Tucson

The Diocese of Tucson filed for bankruptcy in September 2004. The diocese reached an agreement with its victims, which the bankruptcy judge approved June 11, 2005, specifying terms that included allowing the diocese reorganization to continue in return for a $22.2 million settlement.[30]

Spokane

In December 2004, the Diocese of Spokane, Washington agreed to pay at least $48 million as compensation to those abused by priests as part of its bankruptcy filing. This payout has to be agreed upon by victims and another judge.[31]

Davenport

On October 10, 2006, the Diocese of Davenport filed for Chapter 11 protection.[13] The decision to file for bankruptcy was driven by many claims which focused on Bishop Lawrence Soens, who had been accused of fondling as many as 15 students during his tenure as priest and principal at Regina Catholic High School in Iowa City during the 1960s. Soens denies the allegations. A judge discharged one suit in October 2006.[14]

San Diego

On February 27, 2007, the Diocese of San Diego filed for Chapter 11 protection, hours before the first of about 150 lawsuits was due to be heard. San Diego became the largest diocese to postpone its legal problems in this way.[24]

Fairbanks

On March 7, 2008, the Diocese of Fairbanks filed for bankruptcy after 130 civil suits filed by Alaska natives who claim to be abused by priests, and other church employees, beginning in the 1950s.[25]

Oregon Province of the Jesuits

In February 2009, the Society of Jesus' Oregon Province, which also was based in other states, filed for Chapter 11 bankruptcy as well.[32] The Province agreed in 2011 to pay $166 million to sex abuse victims[33]

Wilmington

On October 18, 2009, the Diocese of Wilmington filed for bankruptcy as the first of some eight lawsuits (of more than 100 potential) was scheduled to go to trial the next day.[34][35]

Congregation of Christian Brothers (North America)

In 2011, the North American chapter of the Congregation of Christian Brothers filed for Chapter 11 bankruptcy due to the financial burden caused by sex abuse lawsuits.[36] In 2013, the North American chapter agreed to pay approximately $16.5 million in damages to more than 400 men and women who were sexually or physically abused as children by members of the order.[37] Between 2006 and 2011, the order had also paid approximately 25.6 million to victims in 50 abuse cases.[37]

Milwaukee

On January 4, 2011, the Archdiocese of Milwaukee announced that it would be filing for bankruptcy. The church was facing more than 23 lawsuits, and attempts to reach a mediated settlement with victims failed in December 2010. This came two days before the bishop was scheduled to be deposed about these cases, and after the church had refused to release the names or personnel records of the priests accused. The opposing attorney said that the bankruptcy filing was an attempt to delay turning over church records on the cases.

The Milwaukee archdiocese has already paid out over $29 million to settle 200 cases over the last 20 years. They said that these additional cases would cause hefty legal fees that the archdiocese could not afford. The archdiocese has assets of about $98.4 million, but $90 million of that is restricted for specific uses.[38]

Stockton

In 2014, the Roman Catholic Diocese of Stockton filed for Chapter 11 Bankruptcy.[39] Under the bankruptcy agreement, which received court approval in 2017,[39] a payout of 15 million was given to over two dozen sex abuses.[40]

Ecclesiastical Province of Saint Paul and Minneapolis

  • The Archdiocese of Saint Paul and Minneapolis filed for Chapter 11 bankruptcy reorganization on January 17, 2015.[41][42][43][44]
  • The Diocese of Duluth filed for Chapter 11 bankruptcy protection on December 7, 2015.[45]
  • On March 3, 2017, the Diocese of New Ulm filed for Chapter 11 bankruptcy protection following numerous lawsuits surrounding sex abuse by Catholic clergy in the area.[46] New Ulm follows the Duluth Diocese and the Archdiocese of St. Paul and Minneapolis, thus making Minnesota the first state in the United States of America to have three Roman Catholic dioceses file for bankruptcy protection.[46]
  • The Roman Catholic Diocese of Saint Cloud announced on February 28, 2018, that it would file for bankruptcy amid claims of sex abuse.[47] The Diocese then filed on March 5, 2019.[48] On May 26, 2020, it was agreed that the Diocese could undergo bankruptcy if $22.5 million was forfeited to compensate 70 sex abuse survivors.[49]
  • In November 2018, the Roman Catholic Diocese of Winona-Rochester released a statement claiming that the Diocese would soon file for Chapter 11 bankruptcy due to the financial burden caused by ongoing sex abuse lawsuits.[50] The Diocese then officially filed for bankruptcy in December 2018.[51]

Archdiocese of Agaña

On January 15, 2019, it was announced that the Roman Catholic Archdiocese of Agaña in Guam filed for Chapter 11 bankruptcy due to the financial burden created by the overwhelming amount of sex abuse lawsuits.[52]

Diocese of Rochester

On September 12, 2019, sex abuse lawsuits forced the Roman Catholic Diocese of Rochester for Chapter 11 Bankruptcy.[53][54] The Diocese is the first Catholic diocese in the state of New York to file for bankruptcy and also the 20th Catholic diocese in the U.S. states to do so as well.[54]

Diocese of Harrisburg

On February 19, 2020, the Diocese of Harrisburg filed for Chapter 11 bankruptcy protection after disclosing to federal bankruptcy court it has more than 200 creditors and estimated liabilities between $50 million and $100 million, with assets of less than $10 million. The Harrisburg Diocese was the first Catholic diocese in Pennsylvania to seek bankruptcy protection.[55]

Diocese of Buffalo

On February 28, 2020, the Diocese of Buffalo filed for bankruptcy as a result of numerous sexual abuse lawsuits.[56]

Archdiocese of New Orleans

On May 1, 2020, the Archdiocese of New Orleans filed for bankruptcy in part due to pending sex abuse lawsuits.[57][58]

Others

See also

Sexual abuse cases in Catholic Church
Critique & consequences related topics
Investigation, prevention and victim support related topics
Other related topics

References

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