Spokane Catholic parishes oppose settlement offer

SPOKANE — An organization of 82 Catholic parishes in Eastern Washington is opposing Spokane Bishop William Skylstad's settlement offer of $45.7 million to victims of sex abuse by priests.

The Association of Parishes, which was organized to represent the financial interests of the individual congregations in the diocese, contended the settlement raises the prospect that churches or schools will be sold to raise the money.

"The proposed settlement provides no clear means for funding that obligation, nor does it offer any 'Plan B' other than involuntary liquidation of parish churches and schools," said a statement released Thursday by the group.

The Rev. Steve Dublinski, vicar of the Spokane Diocese, said the parishes are separate legal entities, entitled to their own opinions on the settlement.

He declined to say whether churches would likely be sold or mortgaged in the future.

"I don't want to speculate on what the future might bring," he said.

Skylstad, who is also head of the U.S. Conference of Catholic Bishops, was out of town on Thursday and not available for comment.

The effect of the parishes' opposition is unclear, since a U.S. Bankruptcy Court judge in this case previously ruled that the bishop controls all parish assets. The Association of Parishes has appealed that ruling.

James Stang, attorney for 75 sex abuse victims who reached the proposed settlement with the diocese, was not immediately available for comment.

David Clohessy of St. Louis, national director of the victims group Survivors Network of those Abused by Priests, said the opposition of the parishes is not significant.

"Each bishop is the lord of his own kingdom with nearly limitless power," Clohessy said. "It's highly unlikely that parishes can 'overrule' Skylstad somehow. History shows that parishes are essentially powerless in the church."

The Association of Parishes was excluded from the negotiations between Skylstad and the victims.

The group, created in 2004 to protect parish assets, held a recent meeting attended by nearly 80 priests, parish administrators and other lay people.

"The AOP desires a settlement of this bankruptcy case as much as any other party," the statement said. It added that "any solution that places an extraordinary financial burden on parishioners is not acceptable."

The settlement offer "places before the individual parishes perhaps the most serious question in the history of their existence," the statement said.

The settlement could saddle future generations of Catholics with financial obligations if churches are mortgaged to raise money, the statement said

Lawyers for the AOP recommended not supporting the settlement because it covered only 75 victims, with at least 20 and possibly more victims still to be negotiated with.

Victims have until March 10 to file claims against the diocese.

The settlement offers an average of $610,000 per victim, far higher than recent settlements reached in Seattle and Tucson, Ariz., the statement said. In 2005, the Archdiocese of Seattle paid $425,000 per victim to settle four claims of abuse. The Diocese of Tucson paid $385,000 per claim to 25 victims in 2005.

While the 75 victims have 120 days or accept or reject the settlement, the parishes think acceptance is a foregone conclusion.

The settlement offer must also win approval from the bankruptcy court.

It is unclear how much money the diocese's insurance carriers will contribute to a settlement, the parishes said.

The payment schedule in the proposed settlement requires the diocese to pay $10 million this year and nearly $27 million more in 20 months, creating "an unacceptably high likelihood of default by the diocese," the statement said. "Default by the diocese translates into foreclosure on parish properties."

The Spokane Diocese filed for Chapter 11 bankruptcy protection in 2004, citing claims by abuse victims totaling about $77 million against assets of about $11 million.