Spokane7
58°
September 15, 2010 in City
Ruling puts parishes at risk of foreclosure
Diocese forced to replenish fund
The Spokane Catholic Diocese must raise more than $800,000 this fall, some of it due in two weeks, to pay sex abuse claims or risk defaulting on its bankruptcy obligations and losing parishes to foreclosure.
The diocese lost a legal fight Tuesday that could have forestalled such a drastic step. Diocese officials did not respond to messages left Tuesday after U.S. Bankruptcy Court Judge Patricia Williams cleared the way for collection efforts.
In such a worst-case scenario, the diocese has the right to designate among certain parishes the order of the first six foreclosed upon, as long as they are within Spokane County, according to court records.
To prevent foreclosure, the diocese needs to deposit more than $43,000 into the bankruptcy trust by Sept. 30, followed by another $800,000 by a deadline that hasn’t been set but is likely to come this fall.
The diocese has not begun a campaign to raise money, nor has it announced an alternative plan such as borrowing money or soliciting cash from benefactors or other sources.
On Aug. 24, bankruptcy trustee Gloria Nagler wrote to the diocese outlining the depletion of cash that had been set aside in a fund to pay people who claim they were sexually abused by diocese clergy or employees, but who didn’t file a claim during the 2 ½ year bankruptcy case that ended in May 2007.
“Failure by the Diocese to replenish the Plan Trust … will leave me with no alternative but to declare the Diocese to be in default of its duties under the Plan,” she wrote.
More than 180 claims of sex abuse were filed in the aftermath of the December 2004 bankruptcy filing.
The case ended with a complex settlement that paid millions to victims and lawyers working all sides of the case.
Parishioners contributed $10 million of the initial $48 million settlement three years ago.
The settlement also provided what the diocese assured parishioners was a narrow opening that would, in rare instances, allow new claims by legitimate victims.
However, that opening has been used by more than a dozen people who claim they were abused decades ago.
Many of these latest claims have been filed by men alleging they were abused by priests and counselors at the Morning Star Boys’ Ranch. And most have filed civil lawsuits against the ranch. Only one has gone to trial and his claim was rejected by a jury.
Church leaders have been mum on how they plan to deal with this development; it’s possible that the $800,000 needed to replenish the bankruptcy trust may be an installment payment.
In the bankruptcy matter, the latest twist centered on whether trustee Nagler had access to a reserve account to pay for her work.
The diocese argued that Nagler could bill the trust for her work but shouldn’t get paid for another six years.
Most bankruptcy cases are pay-as-you-go. It ensures that the lawyers and trustees are among the first ones paid.
Nagler argued that if the diocese were allowed to defer payments, the plan would be unfunded and rendered unenforceable.
“I don’t think the drafters intended for that to happen,” said Nagler’s attorney, David Kerruish.
Parishes giving $1.5 million toward settling sex cases 
oneanddone on September 15 at 7:06 a.m.
Lawyers and bankers … don’t ya lov’em.
misjustice on September 15 at 7:16 a.m.
Pedophile Priests, don’t ya lov’em?
opiemuyo on September 15 at 7:24 a.m.
priest hating, cop hating trolls, don’t ya lov’em?
misjustice on September 15 at 7:27 a.m.
Priest loving victim hating posts, don’t ya lov’em?
johno on September 15 at 9:05 a.m.
SR, could you let us know how much the attorneys, experts, trustees etc…have been paid thus far in this whole proceeding?
Blondscence on September 15 at 9:30 a.m.
It’s kind of tragic. Most of those oldpriests died before these complaints. They couldn’t defend themselves. And yet, the claims continued. This is and was about money….money for the claimants….years ago, I sat in one of those courtroomsand watched the proceedings. One of the lawyers asked two of the claimants what they REALLY wanted. Of course, both said they wanted money. When asked what money would do for them? In other words how would money repair them…why not have the Diocese pay for counseling or some such that might have a true impact….they both became indignant and wouldn’t answer the question. Told the lawyer who asked a sincere question and wasn’t involved in the case…”F you….I want my money”.
This is just about money. Most the abuse claims cannot be confirmed. As with the Morningstar case, it’s mostly about money. Very very, if any, cases will ever be confirmed. Tragic for the Church and the local parishes. These claimants don’t want to be repaired as humans…as is the time we livein, it’s about money. I suspect there were major defects in their brains all along. The claimants got their feet in the trough of the ugliest of sins. Sensitive situation to be sure….the Church should have fought and demanded proof of any all allegations. It made a choice to accomodate…and look what’s happened.
deacon46 on September 15 at 10:34 a.m.
The Catholic Church is all about money and it is about time it was financially held accountable. Lawyers and Bank managers go get em…..In Every parrish……
Dazzeetrader11 on September 15 at 11:59 a.m.
Financially held accountable for what William? Sounds a bit anti -Catholic William. Have an axe to grind? What does your post have to do with the story posted. Sounds like you’d like to say more.
Is this about the lawsuits or your opinion about the Church? They aren’t the same. Let’s hear more for you.
Diana on September 15 at 5:28 p.m.
Perhaps the Catholic Church is being held accountable for peophile priests and the higher ups who protected them.
Tough. You reap what you sow.
mdriftmeyer on September 15 at 5:46 p.m.
The Roman Catholic church has amassed assets well in excess of $1 Trillion. I’m not citing the value of their parishes and assets acquired from their Parishioners. I’m talking about their world-wide assets and antiquities.
To see them asking their Parishioners to pay for their neglect is a double insult.
They got off easy. This shouldn’t come as a surprise that such neglect and harm to innocent children would occur. The RC made an economic decision in the 4th Century to eliminate marriage of their Priests so that once that man’s death came all his assets would be given to the RC.
They got off easy with this scandal.
misjustice on September 15 at 5:58 p.m.
mdriftmeyer; They got off a lot easier than their victims did. No amount of $$$ can ever make the victims whole, can ever return what was taken from them.
Dazzeetrader11 on September 15 at 7:03 p.m.
Well J if money can’t make them whole, perhaps they should foregoe the $$$. Won’t help em as you say….and as the lawyer asked them. These are not going to get better with money. It’s the psychiatrists they need….if indeed they were molested.
Hard to know since the alleged offender are mostly dead.
This O’Donnell character did most of the damage and he’s still won’t admit his guilt nor will he even think about reparations. The old guys…well…who knows. Nobody does. Sorta like Mr Creach…the evidence or perhaps another side of the story is dead and gone.
Don’t think in cliche’s J…we don’t know what or if anything was taken from these alleged victims. And because the Chrurch may have trillions…who says the Chruch deserved penalties. You’re too money minded about this. The flaw isn’t about money and the repair isn’t money. It’s a circle…the more they complain, they think they deserve more money. No interest in getting better as a human as long as they can collect money.
Jimmy on September 15 at 10:22 p.m.
No one is talking about the real issue here. The real issue is that the Catholic Church created a doctrine that mandates that Men who desire to be Priests not get married. So what you have is thousands of Men who have a genuine heart to serve God but over time get consumed with repressed sexual desire which leads to perversion and eventually rape of young boys. This is happening everywhere in every country and the Catholic Church has failed to address is and is hoping it just goes away.
Spokane_Citizen on September 15 at 11:04 p.m.
Payback is tough, but that’s what the catholic church (as well as its various subordinate entities) deserve for aiding in the commission of horrendous crimes. Their members looked away, ignored the victims, and it’s time to ‘pay the piper’. The loss of an institution rife with perversion and abuse of children is a good thing. Good riddance.
valleyman on September 15 at 11:16 p.m.
Keep it up you Catholic haters… We’ll keep praying for you while you keep spewing your hatred and we’ll keep praying for those who keep abusing the system created to help those who were truly abused… We may lose our places of worship but we won’t lose our faith… It’s truly sad that innocent parishioners are being victimized now by the “victims” of abuse who just want to be made whole… made whole by taking other’s money…
The truth is a fund was set up, it was paid for and people were given two years to come forward with claims… That period has passed and these new claims should not be allowed… People had their chance to claim they were abused by people who are now dead and they either took that chance or they didn’t… This is truly sad…
valleyman on September 15 at 11:18 p.m.
Let he who is without sin take the first dollar…
Spokane_Citizen on September 15 at 11:52 p.m.
valleyman…it’s not my fault that your church hierarchy chose to perpetuate a deviant friendly lifestyle (as evidenced by the virtual world-wide epidemic of abuse cases ignored by your church). Where there’s smoke (and this has been a veritable firestorm) there’s fire.
Pray for yourself, and what your religious authority figures hath wrought (I thought that ‘hath’ had a nice biblical tone, like your last sanctimonious and most pontifical post, don’t you think)?
Diana on September 16 at 1:55 a.m.
Gee, valleyman, it sounds like the parishioners are being vicitimized by the Catholic Church. Keep forking over your money to pay for the abuse and cover-up. I’m sure the Vatican, with their $1 trillion in assets, really appreciates it.
valleyman on September 16 at 6:45 a.m.
Thank you both for proving my point…If you read the story you would see that these claims of abuse are either unproven or have been rejected by a jury. The church decided it would be cheaper to settle than to fight a couple hundred abuse claims… Oh well, when have facts stopped people from showing their true bias…
With your line of reasoning, the average rank and file people who worked for Enron should be forced to pay the shareholders who got screwed when that company went under. The Church is not without blame but the parishioners are. To force them to again pay for something they did not do is wrong. Sorry the unfairness of that is lost on you… Also really sorry you can’t see how unfair it is for people to be coming out of the woodwork making claims against people who are dead and can’t defend themselves…
Liberty_Bell on September 16 at 7:15 a.m.
Yes valleyman? as you state;
“valleyman on September 15 at 11:16 p.m.
“… That period has passed and these new claims should not be allowed… People had their chance to claim they were abused by people who are now dead and they either took that chance or they didn’t… This is truly sad…”
Just think if the Romans, and the Jews had an equal justice system like America, there would have been no catholic church to invent, and no golden image to worship…the period has passed and these new claims shouldent be allowed???
When your not aware of who invented an early version of our equal protection clause, a couple thousand years ago…evidently many claims of the Vatican seem to be truly questionable too…
Just another Catholic Cover up, shown best with the Jewish coverup, that invented the Catholic Church…shown best in the book where murder was also legal… or did it ALSO confuse Pope John too?
19:19 And Pilate wrote a title an put it on the cross. And the writing was. JESUS OF NAZARETH THE KING OF THE JEWS…and it was written in Hebrew, and Greek, and Latin.
Then said the chief priests of the Jews to Pilate, Write no, the King of the Jews; but that he said, I am King of the Jews.
Pilate ansewered, What I have written I have written…
It’s pretty simple when your Priests, can’t read, can’t write, and lie. Shown best by the inventor of your local Catholic conspiracy!
misjustice on September 16 at 7:34 a.m.
Money damages is the perfect way to address the sins of the catholic church; it’s the ONLY thing they understand.
This article should have been titled;
Pedophile Priests Preying on Children Puts Parishes at Risk of Foreclosure.
Diana on September 16 at 6:30 p.m.
valleyman, I am not a Catholic, so I don’t really care about the financial and legal situation the Church finds itself in as a result of showing the world who they really are. Protecting pedophile priests, transferring them, hiding their crimes - you’re a member of that club, not me. Guess you’re just going to have to deal with it. Pay up.