Attorney: $45.7 million offer in Spokane church abuse case

SPOKANE — The Roman Catholic Diocese of Spokane, which filed for Chapter 11 bankruptcy protection because of sex abuse claims, has offered a $45.7 million settlement to 75 victims of priests, a lawyer said today.

James Stang of Los Angeles, a lawyer representing a committee of victims, said the committee voted Tuesday night to recommend that the offer by the diocese be accepted.

"This is an important step toward getting the diocese out of bankruptcy," Stang said.

The offer must be approved by the U.S. Bankruptcy Court, and by the victims within 120 days, Stang said.

Telephone calls to the diocese office were not immediately returned and an attorney for the diocese declined to confirm the settlement offer. Bishop William Skylstad, who is also head of the U.S. Conference of Catholic Bishops, scheduled a news conference for noon. The topic was not announced.

Stang said the settlement called for 80 percent of the $45.7 million to be paid by Oct. 1, 2007, with the rest later.

The settlement would cover only people who have already filed lawsuits or claims against the diocese. There is no provision for anyone else who might bring a claim in the future.

The diocese, which covers 82 parishes across Eastern Washington, filed for bankruptcy protection on Dec. 6, 2004.

The diocese faced 19 lawsuits involving 58 people who claimed abuse by a total of 11 priests from the 1950s to 1991. It also faced claims from other people that brought the total to $77 million.

The Spokane Diocese is one of three nationwide that filed for bankruptcy because of sex abuse claims against clergy. A $22.2 million settlement was reached last summer in Tucson, Ariz., while a federal judge in Portland, Ore., ruled last month that trials involving as many as 100 plaintiffs could move forward.

The diocese has about $11 million in cash and property. Money could also come from insurance carriers and by selling or mortgaging church property.

U.S. Bankruptcy Judge Patricia C. Williams ruled last summer that parish property is held in trust to benefit the diocese, and could be sold or mortgaged. The diocese, which contended it did not own individual parishes, appealed that finding to senior U.S. District Judge Justin L. Quackenbush.