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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Spokane Diocese Bankruptcy

News related to the church sex abuse scandal and the Spokane Diocese bankruptcy proceedings.

News >  Spokane

Diocese asked to halt attorney fees

Catholic parishes in Eastern Washington have asked that payments to bankruptcy lawyers be suspended or at least held down until the clergy sex abuse case is settled. With legal fees running in excess of $325,000 a month draining the cash reserves of the Roman Catholic Diocese of Spokane, parish members worry that the diocese could run out of money before the case is resolved.
News >  Spokane

Parishes’ ownership key to case

The Roman Catholic Diocese of Spokane and alleged victims of clergy sex abuse are preparing for a legal showdown that could challenge church governance and set a national precedent. Alleged victims – the creditors in the diocese's bankruptcy case – have asked a federal bankruptcy judge to declare that parish properties, ranging from the Lady of Lourdes Cathedral to schools and Sunday offerings, belong to the diocese and therefore should be available to settle financial claims.
News >  Spokane

Diocese lowers estimate of victims

The Roman Catholic Diocese of Spokane now says that it overstated the number of alleged sexual abuse victims who haven't filed lawsuits, a disclosure that could undermine the validity of a key creditors' committee. When the diocese filed for Chapter 11 bankruptcy protection last December, it did so with the caveat that the more than 60 people who had filed lawsuits weren't the only victims of pedophile priests.

News >  Business

Fast track bankruptcy urged

The Roman Catholic Diocese of Spokane is spending in excess of $325,000 a month to pay bankruptcy lawyers and fund operating costs, a burn rate so taxing that it has prompted calls to hurry up – or else. The 58 creditors in the lawsuits that prompted the bankruptcy who allege they were sexually abused by priests, want the bankruptcy case put on a fast track to preserve the cash for settlement payouts.
News >  Spokane

Priest-abuse case settles for $1 million

A woman in Anchorage, Alaska, received a $1 million settlement this week for the alleged childhood abuse she suffered at the hands of a Jesuit priest now retired in Spokane. Elsie Boudreau was first molested in the late 1970s by the Rev. James Poole when she was a 10-year-old in Nome, according to the lawsuit filed in Alaska a year ago against the priest, the Oregon Province of the Society of Jesus, the Alaska Jesuits and the Diocese of Fairbanks.
News >  Spokane

Dual creditor committees still in place

The Catholic Diocese of Spokane lost a bankruptcy court fight to disband a committee representing victims of clergy sex abuse. Fearful that the Chapter 11 case will cost millions in lawyer fees, the diocese asked U.S. Bankruptcy Court Judge Patricia Williams to consider whether she had jurisdiction to dissolve one of the two creditors' committees appointed by the U.S. Trustee's office.
News >  Spokane

Priest who alleged abuse leaving clergy

BOTHELL, Wash. – A Roman Catholic priest who stunned his parishioners at St. Brendan Church when he told them he was sexually abused as a boy is resigning from the priesthood and may write a book about his experience. The Rev. Lawrence Minder, 44, said he has been diagnosed with post-traumatic stress disorder stemming from his abuse, which he says occurred when he was in seminary as a teenager. Counselors at an Arizona treatment facility told him recently he needed to separate from the priesthood to work through the issues underlying the disorder.
News >  Spokane

Sulpicians sued over priest’s alleged abuse

More than two dozen plaintiffs who were allegedly abused as minors by Patrick O'Donnell, a former priest in the Spokane Diocese, are now suing the order of priests that ran the seminary where O'Donnell was trained for the priesthood. The Associated Sulpicians of the United States has been named as the defendant in two lawsuits claiming that officials from the order didn't do enough to protect children from O'Donnell. Those suits also allege that the Sulpicians neglected to discuss O'Donnell's pedophilia with the Diocese of Spokane, where O'Donnell was ordained in 1971. Instead, the seminary recommended him as "good priestly material."
News >  Spokane

Woman files claim against priest in bankruptcy court

A Spokane woman has filed a bankruptcy court claim alleging that a Roman Catholic priest in Spokane leveraged his influence as counselor and spiritual adviser into a sexual relationship that ended about 20 years ago. The claim by Joan Healy-Hartill is reportedly in excess of $10,000 to reimburse her for counseling expenses. It is among the few formal claims alleged victims of sexual abuse have filed in the Chapter 11 bankruptcy case of the Spokane Catholic Diocese.
News >  Spokane

Diocese wants committee dissolved

Worried that lawyer fees will run into the millions of dollars, the Catholic Diocese of Spokane wants the federal judge overseeing its bankruptcy case to dissolve a committee representing victims and cap legal costs. Now two and a half months into the bankruptcy, the diocese and competing victims' groups are still fighting over one of the most basic steps in Chapter 11 cases – establishing creditors' committees that represent the interests of investors and lenders, or in this case, the victims.