Spokane7
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February 12, 2010 in City
Diocese lawyer faces court action
Arpin could be charged with contempt over alleged threat to sue bankruptcy trustee
An attorney for the Catholic Diocese of Spokane faces a contempt of court hearing for allegedly threatening a bankruptcy trustee with a personal lawsuit.
The hearing involving attorney Greg Arpin will be held Feb. 22 in front of U.S. Bankruptcy Court Judge Patricia Williams.
Arpin, of the Spokane law firm Paine Hamblen LLP, has represented the diocese for years and has played a major role defending it during the child sex-abuse scandal that forced the diocese into a protracted and expensive bankruptcy.
Although the bankruptcy case has been largely resolved through a $48 million settlement with victims of clergy sex abuse, a slew of late and unexpected claims have been filed that could cost the diocese millions more.
Arpin and the diocese have been fighting the legitimacy of these new claims – some of which have been approved and paid. They lost arguments in Bankruptcy Court and have appealed to U.S. District Court.
Despite the appeal, Williams ordered bankruptcy trustee Gloria Nagler to proceed with the payments.
On Jan. 13, Arpin sent an e-mail to Nagler.
The e-mail “threatened to sue the plan trustee personally if the diocese’s position was ultimately sustained on appeal, but after funds were released from the plan trust,” Nagler wrote in court records.
The issue was presented to Williams, who ordered Arpin to appear in person.
Nagler asked that Arpin be sanctioned, fined at least $10,000, and ordered to pay attorney fees related to the matter rather than billing the diocese.
“The diocese’s strategy here is clear: force the plan trustee to violate the court order in fear of future litigation by the diocese, or force her to resign,” Nagler wrote, adding that there is no insurance policy to cover her performance.
John Munding, a diocese bankruptcy attorney with another firm, disputed that Arpin issued a threat.
“Greg is a well-respected lawyer and I can assure you that the diocese didn’t threaten anyone,” he said.
Arpin declined to comment for this story.
Munding said Arpin’s e-mail to Nagler falls well short of the threshold for holding a lawyer in contempt of court.
William Etter, who is representing Arpin in the contempt matter, said everyone involved in the diocese bankruptcy “has strong feelings about what has happened and what’s going on now.”
He said Arpin remains concerned that bogus claims are being paid, thereby denying money to victims with legitimate claims or possibly forcing the diocese to raise more money.
“There were no uncivil words or threats to justify a contempt order,” Etter said.
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liarsinnews on February 12 at 6:27 a.m.
There are too many low life attorneys in the Lilac City. The law firm on the 5th floor of city hall has a mouth piece who has a history of suing citizens if they sue our “fair?” city. His name is Rocky, and is not the infamous movie star.
Truthhurts on February 12 at 7:14 a.m.
Arpin went waaaaay over the line and should do a few days in jail to teach him to obey court orders.
My best friend’s father, when I was growing up here, had been repeatedly gang-raped by priests. He told very few people, and, of course, never sued anyone.
My father had a friend who had also been raped by priests.
Perhaps all of these allegations are not true, but many, many crimes went unpunished because of the “threats to silence” that Arpin represents.
The SILENCING of the victims has been the greatest crime and shame of the church.
Truthhurts on February 12 at 7:27 a.m.
Don’t judge all Gonzaga Law graduates by the few fanatical defenders of an unjust status quo — those few represent the dark side of Church history, but I believe this disinterest in justice, and desire to support power over the weak at all costs, does not represent the majority.
steveeugster on February 12 at 9:17 a.m.
One must wonder, suspect, whether there is a “sex abuse claim” enterprise at work in Spokane county. For more on the subject see http://www.washcourts.com/?p=405
skeugster on February 12 at 5:47 p.m.
Here a copy of the email in question. It is hardly a basis for contempt: “Gloria” is Gloria Nagler.
Gloria and David:
The Diocese has determined not to request from the District Court a stay of the claim payments pending its appeal. It does intend however on pursuing its appeal of the issues raised by Judge Williams’ determinations regarding review of the TCR’s claims decisions. If during the course of that appeal, the TCR issues any rulings allowing additional claims which allowances we feel are in violation of the terms and conditions of the Plan regarding future claims, we will move at that time with the District Court for stay of payments on any such claims pending resolution of the issues on appeal. Further, if it ultimately prevails on its appeal that the TCR determinations can and should be reviewed for ultra vires acts and abuse of discretion, the Diocese reserves all rights to look to the Trustee to reimburse the FC Fund for money paid out on claims that do not qualify under the Plan as Future Claims.
Greg