The Portland Catholic Archdiocese Priest Abuse Document Archive

Deal in Portland Archdiocese Bankruptcy

Foxnews.com
Friday, April 13, 2007

PORTLAND, Ore. —

A judge overseeing the bankruptcy filing of the Archdiocese of Portland will confirm a proposed $75-million deal for current and future sex abuse claims against priests and other church officials, according to court documents filed Friday.

The decision from U.S. Bankruptcy Judge Elizabeth Perris leaves intact the compensation proposed in a plan negotiated by the plaintiffs and the archdiocese, the first in the nation ever to declare bankruptcy.

The judge asked lawyers to make one change and draw up final documents for her approval.

About 175 people who claimed they were molested by priests or other church officials have agreed to settle their cases for about $52 million.

Another $20 million has been set aside for those who come forward after an agreed deadline. Another sum, capped at $3.8 million, has been set aside to pay for claims that haven’t been settled in the bankruptcy negotiations.

A family who had a claim against the archdiocese involving a boy’s expulsion from school _ a case unrelated to sexual abuse _ had argued the $3.8 million was not enough.

In her decision Friday, Perris rejected that argument.

Five of the 195 U.S. dioceses, including Portland, have sought bankruptcy protection as a result of the clergy sex abuse crisis: Tucson, Ariz., Davenport, Iowa, Spokane, Wash., and most recently, San Diego. Tucson has emerged from bankruptcy and a proposed settlement in Spokane is awaiting approval.

Portland filed for protection from its creditors in July 2004.