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Third Catholic diocese files for bankruptcy

NewsReligious Herald  |  December 13, 2004

In an expected move, the Roman Catholic Diocese of Spokane, Wash., filed for bankruptcy protection Dec. 6 to grapple with sexual abuse claims.

Bishop William S. Skylstad announced in mid-November that the diocese planned to file for Chapter 11 bankruptcy after being unable to settle sexual abuse claims with alleged victims. The filing makes Spokane the third diocese in U.S. history to make such a move, following dioceses in Portland, Ore., and Tucson, Ariz.

The Spokane diocese faces claims totaling some $77 million and Skylstad said the bankruptcy provides the best way to make sure victims are treated fairly and the church continues its work, the Associated Press reported.

“Demands by plaintiffs continue to be beyond the ability of the diocese to meet,” said Skylstad, who was elected president of the U.S. Conference of Catholic Bishops in November.

The filing comes less than a week after a California diocese reached what is believed to be the largest settlement of claims involving sexual abuse by priests and other church staffers. The Los Angeles Times reported that the Diocese of Orange settled claims with 87 people, pledging a sum expected to exceed the $85 million record payment to plaintiffs in the Boston archdiocese in 2003.

Religion News Service

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