The Portland Catholic Archdiocese Priest Abuse Document Archive

Portland settles with abuse victims, bankruptcy deal approved

National Catholic Reporter,  
April 27, 2007 

A federal judge has approved a $75 million settlement plan for the Portland, Ore., archdiocese that will provide financial relief for about 175 people who say they were sexually abused by priests.

As part of the settlement, the archdiocese has agreed to make public documents, mostly personnel files, on priests accused of sex abuse. The documents are expected to be released in mid-May. Details of the settlement were announced April 17.

Lawyers for victims called the agreement to release the documents "historic" and said it would mark the end of "the era of secrecy" when silence prevailed over abuse complaints.

"This policy of openness and transparency will go far in preventing future tragedies," David Slader, lawyer for a number of victims, told The Associated Press.

The settlement includes about $52 million from insurance companies to cover 175 claims and another $20 million for future claims.

The archdiocese had settled about 140 sex abuse claims for $53 million before it decided to declare bankruptcy the day before it was to go to court to answer additional abuse charges.

The settlement will allow the archdiocese to reorganize under a bankruptcy plan approved by U.S. Bankruptcy Judge Elizabeth L. Perris. With the plan, the archdiocese, which in 2004 became the first U.S. diocese to seek bankruptcy protection, secures its financial future without selling any assets held by its 124 parishes, 42 elementary schools, 10 high schools, two colleges and charitable funds.

Questions remain about how the church will reorganize. The bankruptcy plan calls for the archdiocese to separately incorporate parish churches and schools to protect them from future lawsuits. That will be legally complicated, and additional independence of the parishes could at some point cause friction with the archbishop.

"It’s a Pandora’s box here that the dioceses have to deal with," said Charles Zech, a professor at Villanova University. Bishops, he said, will have to ask, "How are we going to maintain control of the parishes?"

Still, most experts agree that the Portland archdiocese’s decision to seek bankruptcy protection turned out to be an unqualified success from a financial perspective.

"This works for them. They can put it behind them," said Carl Tobias, a professor at the University of Richmond School of Law. "And it could have been a lot worse."

Four other dioceses filed for bankruptcies after Portland in 2004. One has already been settled in Tucson, Ariz., while an agreement is pending in Spokane, Wash. The other two dioceses are in Davenport, Iowa, and San Diego. (See related story.)

At an April 17 news conference, Portland Archbishop John Vlazny apologized again to those who had been abused by clergy. "It is my sincere prayer that our ability to compensate the many victims will assist them in their efforts to achieve personal healing and peace of heart," he said. "I pray for them daily."

Vlazny also thanked Catholics who continued to back the church’s mission, and he apologized to laity, religious and clergy who have been "humiliated and penalized" during the scandal though they bore no personal guilt.

The archbishop announced a service for reconciliation and healing set for June 13 at St. Mary Cathedral. Reconciliation with all who have been hurt is "the ultimate grace we seek," he said.

By WIRE SERVICES

COPYRIGHT 2007 National Catholic Reporter
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