Spokane Diocese Bankruptcy - Special coverage at The Spokesman-Review

News > Spokane

Diocese bankruptcy background

Sun., Dec. 4, 2005

Why did the diocese file for bankruptcy? To settle multimillion- dollar claims of priest sex abuse.How many alleged victims of abuse are there? About 80.What are the potential settlement costs? As much as $40 million.Where does the case stand? U.S. Bankruptcy Court Judge Patricia Williams says the diocese's plan for getting out of bankruptcy falls short. What's next? The diocese's plan will be reworked to recognize that churches and schools are assets.

News > Spokane

Parishioners vent feelings

Sun., Dec. 4, 2005

Frustration immediately swept across the room. "All of us are victims," Frank Cheyney told other Catholics last week during a gathering at St. Aloysius' O'Malley Hall. "A horrific violation of trust has taken place."

News > Spokane

Post Falls pastor put on leave

Sat., Oct. 22, 2005

The pastor of St. George's Catholic Church in Post Falls has been placed on administrative leave amid allegations of sexual misconduct, according to the bishop of the Diocese of Boise. Bishop Michael Driscoll accepted the Rev. William R. Gould's request for leave from active ministry effective Oct. 16 after learning that the priest "was involved in activity which violates the Diocese of Boise's sexual misconduct policies as they relate to adults," Driscoll said in a written statement.

News > Spokane

Diocese planning to sell properties

Tue., Oct. 11, 2005

The Catholic Diocese of Spokane will start selling property such as its chancery in downtown Spokane and the home of Bishop William Skylstad if a bankruptcy plan filed Monday is approved.

News > Spokane

Diocese legal bills challenged

Fri., Oct. 7, 2005

Bankruptcy lawyers are overcharging the Catholic Diocese of Spokane, according to the U.S. Trustee, a federal official who watchdogs the bankruptcy case. Lawyers working on the case bill in six-minute increments, whether the time is spent arguing in court, setting strategy or reading case-related e-mails. Based on billings throughout the year, it appears attorneys will have accrued fees in excess of $3 million by the time the case is a year old in December.

News > Spokane

Parishioners to join bankruptcy case

Sat., Aug. 27, 2005

PORTLAND – Around the middle of next month, thousands of Oregon households will get a letter informing them that, as parishioners of the 124 Catholic churches in Western Oregon, they are officially part of the class of defendants in the Portland Archdiocese's bankruptcy case. U.S. Bankruptcy Judge Elizabeth Perris formally certified the class on Friday.

News > Spokane

Diocese won’t add ruling by Vatican to case

Fri., Aug. 12, 2005

A lawyer defending Spokane's Roman Catholic diocese from lawsuits filed by alleged sex-abuse victims said Thursday a recent Vatican statement vindicates the diocese's position that it doesn't own Spokane parishes. But the attorney representing those victims against Spokane's diocese disagreed, saying the Vatican statement – telling the Archdiocese of Boston that it has no claim on its parish assets – has no bearing in a high-stakes legal battle about to be decided by a Spokane federal bankruptcy judge.

News > Spokane

Fate of diocese could rest on property ruling

Tue., June 28, 2005

Lawyers argued Monday whether churches and schools should be sold or mortgaged to settle sex abuse claims that have sunk the Roman Catholic Diocese of Spokane into bankruptcy. U.S. Bankruptcy Judge Patricia Williams plans to rule within six weeks, deciding whether parishes are stand-alone organizations or belong to the diocese.

News > Spokane

Judge to rule on financial holdings

Sat., June 25, 2005

Monday marks perhaps the most significant action to date in the Roman Catholic Diocese of Spokane's bankruptcy case. U.S. Bankruptcy Court Judge Patricia Williams will hear arguments that could fold Catholic parish properties across Eastern Washington into the financial holdings of the diocese.

News > Spokane

Parishes seek deal to stop litigation

Sat., June 25, 2005

As the cost of bankruptcy continues to skyrocket, parishioners and priests from the Roman Catholic Diocese of Spokane are asking for a quicker resolution: an out-of-court settlement that would likely entail voluntary contributions from people in the pews. Continued litigation – at the rate of more than $325,000 a month – will only drain the diocese of its limited funds, said Robert P. Hailey, co-chairman of the Association of Parishes, an organization representing the roughly 90,000 parishioners and priests of all 81 parishes in the Spokane Diocese.