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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

Seminary staff accused of abuse

Allegations of sexual misconduct have recently surfaced at Mater Cleri, the former seminary in Colbert that was supervised for several years by Bishop William Skylstad. A letter sent last month to alumni indicated that the Catholic Diocese of Spokane had received information "of an act or acts of sexual abuse, boundary violations, inappropriate touching or criminal acts" committed by a person on the Mater Cleri staff. The letter did not indicate who the alleged abuser was nor did it provide any details or time frame of the misconduct.
News >  Spokane

Parishes unsure about payout

Catholic parishioners are studying a $45.7 million offer to settle 75 sexual-abuse claims amid fears that the proposal could wipe out ministries and financially cripple the church for decades. Parishes are faced with a difficult choice: Trust Bishop William Skylstad's move, or withhold support and seek a better settlement.
News >  Business

Diocese sells shelter center

A building where hundreds of children and young mothers found shelter and care over the past 60 years has been sold as part of the Roman Catholic Diocese of Spokane's bankruptcy case. The former St. Anne's Children and Family Center at 707 N. Cedar was sold at a bankruptcy auction on Feb. 1. Nancy Santschi-Apodaca, of Spokane, submitted the winning bid of $501,000. She said she plans to renovate the building into office space with hopes of attracting a law firm.

News >  Spokane

Diocese seeks to sell trust fund

To help fund a potential $45.75 million settlement offer to victims of clergy sexual abuse, the Roman Catholic Diocese of Spokane has turned to Catholic Charities for help. On Friday, Bishop William Skylstad formally asked the agency to spend $2 million on a trust fund – one that the diocese won't own until 2008 but is expected to double in value in less than two years.
News >  Spokane

Scandal may cost parishes

With a $45.75 million settlement offer on the table to pay victims of clergy sexual abuse, the Roman Catholic Diocese of Spokane now faces a new dilemma: how to pay for it. Bishop William Skylstad and his attorneys remain hopeful that six insurance carriers will put in tens of millions of dollars toward the settlement. Anything less and the diocese confronts the difficult task of asking parishioners to pay by selling churches and schools.
News >  Spokane

Diocese offers $45.7 million

The Roman Catholic Diocese of Spokane has offered $45.7 million to settle sex abuse claims that ultimately drove the church into bankruptcy 14 months ago. A press conference will be called today, said James Stang, an attorney representing alleged victims. A settlement would be a major development in a case widely criticized for its slow pace and high fees. Attorneys and a small group of alleged victims involved in the bankruptcy are recommending approval of the deal following a meeting at the Davenport Hotel on Tuesday night.
News >  Spokane

Diocese offers abuse claim plan

The Roman Catholic Diocese of Spokane proposed a new plan Friday to pay alleged victims of priest sex abuse and resolve its thorny bankruptcy case. The new bankruptcy plan shows the diocese, stung by soaring legal costs and slow progress, may have double the money available to pay victims than the diocese's initial estimates – $57.5 million without selling or mortgaging a single church or parochial school.
News >  Spokane

Judge in bankruptcy case of archdiocese will stay

PORTLAND – U.S. Bankruptcy Judge Elizabeth Perris has announced she will not recuse herself from the Portland Archdiocese's bankruptcy proceedings after satisfactorily resolving a potential conflict of interest, Oregon Public Radio reported. The Catholic archdiocese filed for bankruptcy last year in the face of mounting sex abuse claims. This week, the case nearly ground to a halt when Perris said she may need to step down from the case because of a possible conflict of interest.
News >  Spokane

Spokane diocese ads will seek out abuse victims

The Catholic Diocese of Spokane will spend $160,000 on an advertising campaign asking people who believe they may have been sexually abused by priests to file claims. The ads will appear in USA Today and in the Jan. 8 Western edition of Parade magazine, which is inserted in major West Coast newspapers. Also, the diocese is running advertisements in daily and weekly newspapers in Washington state.
News >  Spokane

Judge hears arguments over church property

PORTLAND – Attorneys for priest sex abuse victims argued in a federal court Tuesday it's absurd for the Roman Catholic Archdiocese of Portland to claim that federal bankruptcy law can be trumped by church law. The victims are asking U.S. Bankruptcy Judge Elizabeth Perris to rule that church buildings, land and schools could be sold by the archdiocese to settle millions of dollars in sex abuse claims, if necessary.