Talks fail in sex abuse lawsuits

Despite four days of mediation, the Roman Catholic Diocese of Spokane and victims of clergy sex abuse were unable to reach a settlement.

“Simply stated, we could not reach a solution, which would provide fairness, justice and equity for all involved parties,” Bishop William Skylstad said Thursday in a press release. “The insurers were not willing to provide sufficient funds to meet plaintiffs’ monetary demands, which collectively are in the millions of dollars.”

Victims’ attorneys said the cases could have been settled but the diocese and its six insurance companies were unable to resolve the cases “in a matter that was fair to the victims.”

The mediation efforts in Seattle involved five lawsuits filed by 28 alleged victims of Patrick O’Donnell, a priest who has admitted to sexually abusing boys from the time he was in seminary. O’Donnell, 62, worked as a priest for the Spokane Diocese and in Seattle until he was removed from ministry in 1986.

Counsel for the plaintiffs couldn’t talk about the dollar amounts discussed during the mediation because of a confidentiality agreement they established with the diocese. They did emphasize that the victims’ requests weren’t unreasonable.

“We don’t believe a serious effort was made to resolve all of the claims,” said Michael Pfau, the lead attorney representing the victims. “The plaintiffs made great efforts to look for creative solutions that would allow the diocese to experience minimal discomfort and allow for a fair resolution.”

Pfau said he requested to meet with the bishop after mediation ended, but had yet to receive a response early Thursday evening. Diocesan officials did not return phone calls from the newspaper.

In a statement of damages filed earlier this year, three brothers who sued the diocese for “years of abuse, sodomy and rape” at the hands of O’Donnell wanted a total of $13.5 million to $18 million in compensation. Twenty-three other victims asked for a combined total of $40 million.

Those weren’t the figures discussed at mediation, according to Tim Kosnoff, another attorney for the victims. The dollar amounts were “considerably smaller than the statement of damages,” he said.

Since negotiations failed, both parties will now go to trial Nov. 29 in Spokane.

Skylstad, in a letter sent to parishioners last week, said the total amount of claims “is in the tens of millions of dollars and far exceeds the net worth of the diocese.”

The diocese could temporarily stop the lawsuit from going to trial by filing for bankruptcy, an option the bishop discussed in the letter sent last week.

“If the Chapter 11(bankruptcy) option is chosen, it will be because we truly believe this is the best path forward for all concerned, including the victims of abuse,” Skylstad wrote.

Pfau, however, said that bankruptcy wasn’t inevitable for the diocese. “If they choose to declare bankruptcy, that would be unfortunate because it certainly could have been avoided.”

Two dioceses in the country – the Archdiocese of Portland and the Diocese of Tucson – have filed for Chapter 11. The Portland decision was made in July, the same week a lawsuit was scheduled for trial.

Several victims traveled to Seattle from Spokane this week to participate in the negotiations conducted by John Cooper, a Seattle attorney who specializes in mediations. Also present were attorneys for the diocese, representatives from the insurance carriers that covered the diocese during the time the abuse took place, and the Rev. Steve Dublinski, the diocese’s vicar general.

Although Skylstad’s statement indicated that one offer is under consideration, Pfau said that isn’t the case. The press release from Skylstad was e-mailed at 4:50 p.m., about 10 minutes before mediation officially ended.

In his letter sent last week, the bishop wrote that filing for bankruptcy would provide “fairness, justice and equity” to all victims, not just those who have filed for abuse. Filing for Chapter 11 “would ensure equal treatment for those who suffered comparable harm, regardless of when the claim arose and where the claim is in the litigation process,” the bishop said. He emphasized that the reorganization plan under Chapter 11 of the U.S. bankruptcy code “may provide the best opportunity for the Diocese of Spokane to continue its ministry and mission in Eastern Washington.”

Bankruptcy would not close down parishes and schools, Skylstad noted. One of the goals of Chapter 11 is to protect the assets of the more than 80 parishes in the diocese.

For the victims, filing Chapter 11 would mean a delay, but it wouldn’t prevent them from going to court. “The victims are not going away, and they are resolute in their commitment for justice,” Pfau said. “Plaintiffs will eventually have their day in court.”

The Diocese of Spokane is currently facing 19 lawsuits involving 58 plaintiffs.