Portland’s archdiocese settles 175 abuse cases

PORTLAND, Ore. – Secret files on Roman Catholic priests accused of sex abuse will be released as part of a $75 million settlement signed yesterday by the Archdiocese of Portland, which will be allowed to reorganize from the first bankruptcy in the nation filed by a Catholic diocese.

 

The documents, mostly personnel files, are not expected to be released until mid-May. But 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,” said David Slader, who represents a number of victims, including one whose case prompted the diocese to declare bankruptcy in July 2004 on the eve of trial.

The Roman Catholic Diocese of San Diego, which in February became the fifth – and largest – diocese to file for bankruptcy protection, returns to federal court today.

In the San Diego case, last week was tumultuous, with bankruptcy Judge Louise DeCarl Adler threatening to hold church representatives in contempt of court. She also decided to appoint an accounting expert to review the diocese’s finances.

Fred Naffziger, a professor of business law at Indiana University South Bend who has closely followed the Catholic bankruptcy cases, said the judge’s action in San Diego “kind of foretells trouble.”

Early tensions between the diocese and plaintiffs’ attorneys also indicate that it may be a long struggle. “People are human and if the other side is saying bad things about you publicly it tends to make you somewhat more stubborn,” Naffziger said.

The Portland case turned into a years-long struggle before the $75 million settlement was approved Friday by U.S. Bankruptcy Judge Elizabeth Perris. It includes about $52 million from insurance companies to cover 175 claims and an additional $20 million for future claims.

The bankruptcy reorganization plan, which U.S. District Judge Michael Hogan said was in effect yesterday, allows the archdiocese to pay victims without tapping into any assets held by its 124 parishes, 42 elementary schools, 10 high schools, two colleges and charitable funds.

Kelly Clark, who has been representing the Oregon abuse victims for 15 years, said the “archdiocese is to be commended for understanding that the old days are over.”

“Secret archives of secret crimes and secret shame will be made public for the community to see and understand,” Clark said at a news conference yesterday at the federal courthouse.

The attorneys were joined by Hogan and Lane County Circuit Judge Lyle Velure, who officially lifted their gag order on the case after months of negotiations that led to the settlement and the agreement to release the documents.

Both judges were praised by the attorneys and by Archbishop John Vlazny, who personally apologized to the victims and to Catholics statewide.

“We are family, and when one suffers, we all suffer,” Vlazny said, asking for prayer for victims, and for “personal healing and peace of heart.”

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