Spokane7
34°
August 31, 2010 in City
Abuse payments sap diocese fund, putting churches at risk
Diocese must raise more money; properties listed as collateral
The Catholic Diocese of Spokane is broaching a consequence of its bankruptcy once thought unthinkable – the sale of churches to pay victims of clergy sex abuse.
New claims of abuse that occurred decades ago continue to be filed, approved and paid, draining a special $1 million fund that now needs replenishing as part of the legal settlement the diocese signed to end its bankruptcy.
If the diocese and a select group of parishes fail to raise the necessary new funds, the trustee in charge of carrying out the bankruptcy settlement is duty-bound to begin the foreclosure process to collect the money.
The scenario poses an immediate challenge for incoming Bishop Blase Cupich, who will be installed Friday.
He has been apprised of what is a rapidly evolving set of circumstances as the diocese wrestles with how to satisfy its financial obligations, while at the same time arguing that many of the new claims are bogus and should not have to be paid.
The diocese has filed a series of appeals in federal court with the aim of rejecting the claims and stopping the payments – especially those relating to the Morning Star Boys’ Ranch.
Many of the claims being paid accuse the ranch’s former director and retired priest the Rev. Joseph Weitensteiner of abuse. The ranch and Weitensteiner deny the multiple accusations.
Weitensteiner remains in good standing with the diocese, which has not found the allegations to be credible. And a jury this year ruled in favor of the ranch and Weitensteiner, rejecting the first of what could be more than a dozen abuse trials.
As the multitude of issues wends through various courts, all sides note that the diocese is struggling to make the finances work.
“These are very trying times,” said John Munding, an attorney who joined the diocese legal team in the aftermath of bankruptcy.
“The reality is the funds have been depleted. The reality is the diocese is obligated to replenish those funds. The reality is this is something that is going to have to be addressed. Soon,” he said.
He said returning to parishioners for more money may not work. Church members have already contributed $10 million to the initial $48 million settlement designed to pay about 180 sex abuse claims. Insurers contributed to the settlement, and the diocese sold property including its chancery, farmland and even its bishop’s residence.
Parishioners also agreed to put up four of their larger properties, including Our Lady of Lourdes Cathedral in downtown Spokane, as collateral to ensure that new abuse claims would be paid. Other parishes listed as collateral in this first grouping are Assumption of the Blessed Virgin Mary, along Indian Trail Road; St. Augustine, on the South Hill; and St. Mary, in Spokane Valley.
A second group of Spokane parishes also are listed as collateral: St. Patrick, St. Thomas More, Our Lady of Fatima, St. Charles, St. Ann, Sacred Heart, St. John Vianney, St. Peter, St. Aloysius, Mary Queen, St. Joseph, St. Paschal, St. Anthony, and St. Francis Xavier. If it came to foreclosure, the process gives the diocese and the parishes the right to decide within the second grouping which six would be sold first.
Gloria Nagler, an attorney from Seattle whom all sides in the bankruptcy agreed to appoint as trustee, has called for a bankruptcy court hearing next week to clarify some issues.
She notified the diocese in late July of the money shortage and the need to replenish the fund.
“I have yet to hear from them how they plan to proceed,” she said. She declined to elaborate.
Munding said the diocese is evaluating its options.
“Unfortunately one of the realities may be that the funds can’t be raised,” he said.
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spokanada on August 31 at 1:15 p.m.
Does anyone feel sorry for them? I’m shocked that they are now appealing for more money from parishiners by doing a story in the SR.
flutieflakes on August 31 at 1:27 p.m.
They need to be taking these cases to court. Particularly the ones alleging Weitensteiner committed misconduct. They’ve already had one thrown out; if more and more cases are deemed bogus, eventually it will not be profitable for the lawyers (like Tim Kosnoff) representing these scumbags (like Kenneth Putnam) to continue their slanderous acts in the name of greed.
I’ve been a critic of the Catholic Church most of my life, but it’s a damn shame that a man as selfless as Father Joe is being thrown in the same basket of pedophilia as true monsters like Patrick O’Donnell, but unfortunately that’s the way this sh*t works. Weitensteiner will have his redemption, but unfortunately it looks as though that will not come until he reaches the eternal splendors of the afterlife, whenever that may be.
dallison on August 31 at 4:55 p.m.
Good! This was brought on themselves for harboring pedophiles.
eagleproducer on August 31 at 5:38 p.m.
Looks like those debit card machines will get unpacked and brought to services each Sunday. Again.
Diana on August 31 at 6:42 p.m.
Tough.
ChefGus/ John Olsen on August 31 at 7:02 p.m.
I attend St Ann’s as a token Lutheran… and my checks are written for only things I can support…. church direct expenses, heating system repair.. and roof repairs… the amount of money “assessed” to the Parish when it was done was equivalent to the total sum of it’s annual budget… O’Donnell was a Parish Priest in Skyway at St Paul’s in Seattle area when I had a little brother from Big Brother’s after being “triaged” there from this Diocese ….. and he was the primary offender against my “little brother” from big brother’s… his prior “Big Brother” had been an offender against the boy too… and tried to become a priest….. which we stopped in his muddy tracks…. there appeared 50,000 dollars to pay for this boy’s treatments and care… but he still ended up in Monroe as a three time loser and likely is still locked up himself…. It in my mind and evaluation was clearly malfeasance on the part of this local Bishop to ship O’Donnell anywhere except to prison…. it lays right at his feet…. I found all of this out 25 years later after I moved back to Spokane and this stuff hit the local fan…. and figured out that O’Donnell got his start here in Spokane at the Morning Star Ranch and as a priest in Spokane.
I attend this parish for worship because the people there are wonderful individuals… and fellow workers in agencies like Catholic Community Services, the new Head of Gonzaga University, House of Charity, etc etc…. it is the Hierarchy and structure of the church that is the problem…. and there is no way to solve that easily… john
Spokane_Citizen on August 31 at 8:40 p.m.
I feel very sorry for the decent people that went to these churches all their lives, and were betrayed by the people they trusted the most.
My mother was a life-long Catholic, and I remember as a teenager, her adamant desire that I stay away from the priests. This stuff was going on a very long time, and had the tacit approval of the church hierarchy. They operated with complete immunity. It’s too bad, but it’s time to ‘pay the piper’. The church let its members down, as did the civil authorities.
Beware of people who say they have a direct pipeline to god….they are, without exception, moral scumbags.
steveeugster on August 31 at 9:03 p.m.
For some thoughts about this situation and news about what might be next see http://www.washcourts.com/?p=523.
mikemcdonnell on September 01 at 12:41 a.m.
More and more the “church” is looking like a corporation… we will pay the fines but we’re not admitting to any wrongdoing.
Not really a confidence builder.
TriCities on September 01 at 2:31 p.m.
I read this story in the Tri-City Herald today and thought it might be a press release from the diocese. The incoming bishop says “many of the new claims are bogus”? The diocese “has not found the allegations to be credible”? What diocese has stepped forward to say “The allegations are credible. The problem is that we failed to silence the victims. Now we face the consequences.”