Ruling on assets buoys diocese

SPOKANE — A recent Vatican ruling that the Roman Catholic Archdiocese of Boston is not automatically entitled to the assets of closed parishes is being closely watched in Spokane, where sex-abuse victims are demanding the church sell parishes to pay claims.

Spokane Bishop William Skylstad has argued in court that he does not control individual parishes within the Diocese of Spokane and cannot sell them to raise money for people who were molested by priests.

U.S. Bankruptcy Judge Patricia Williams is expected to rule by Sept. 1 on whether the parishes belong to the diocese, but the Vatican decision is encouraging, said Shaun Cross, an attorney for the Spokane Diocese.

"It reaffirms the position of Bishop Skylstad in that he does not own the parishes," Cross said.

An attorney for sex-abuse victims said the Vatican ruling holds no weight in secular courtrooms.

James Stang, a Los Angeles lawyer representing the victims in the Spokane case, told The Spokesman-Review newspaper that the Vatican statements reflect internal church rulings called canon law that have nothing to do with the issues Williams is reviewing.

Stang said the victims think civil laws clearly indicate the diocese owns the parish properties.

Spokane and two other dioceses — Portland and Tucson, Ariz. — have filed for bankruptcy protection because of sex-abuse claims and have tried to limit the assets that can be claimed by victims by arguing that the assets of parishes belong to parishioners.

The Spokane case is the farthest along in the legal system, and Williams' ruling will be closely watched by other dioceses considering bankruptcy.

If Williams rules against the Spokane diocese, the 70 or so plaintiffs can pursue financial claims against the diocese's entire collection of assets, including 16 schools and more than 80 parishes in Eastern Washington. If the judge rules in favor of the diocese, its net worth would be much less. The diocese estimates it has assets of about $25 million, including about $15 million in insurance policies.

In Boston, Archbishop Sean O'Malley has closed more than 60 churches, claiming their financial assets and selling off much of the real estate. Those churches are no longer considered parishes under canon law.

The Vatican's decision, though, will affect eight parishes that have appealed their closings.