Settlements and bankruptcies in Catholic sex abuse cases

Settlements and bankruptcies in Catholic sex abuse cases have affected several American dioceses, whose compensation payments have totaled in the billions of dollars.

Estimates by Donald Cozzens

According to Donald Cozzens, "by the end of the mid 1990s, it was estimated that... more than half a billion dollars had been paid in jury awards, settlements and legal fees." This figure grew to about one billion dollars by 2002.[1] Roman Catholics spent $615 million on sex abuse cases in 2007.

Payments to victims
DateDioceseCharges made againstAmountNumber of VictimsCommentsNotes
1994, MayLincoln, NE$40,0001
1997Dallas, TXRudolph Kos $31 millionOriginally $119.6 million via jury award. On appeal reduced. [2]
2003, JunLouisville, KY$25.7 million240[3]
2003, SepBoston, MA$85 million552[4]
2004, Jul 6Portland, OR$53 million100 (over)Filed for bankruptcy, Chapter 11.
2004, SepTucson, AZ$22.2 millionFiled for bankruptcy, after reaching an agreement with its victims[5]
2004, DecSpokane, WA$48 million (at least)Filed for bankruptcy, payment was a part (has to be approved by judge and victims)[6]
2005, Jan 3Orange, CA30 priests, 2 nuns, 11 other$100 million87In 1997, Bishop Tod Brown himself was accused of having sexually abused a 12-year-old boy in 1965 as pastor in Bakersfield. Church officials dismissed the claims and he denied the allegation. Eleuterio Ramos 11 cases, Siegfried Widera, who later committed suicide, 9 cases, 25 case uninvolved[7][8][9][10][11]
2006, Oct 10Davenport, IALawrence Soens15Filed for Chapter 11 bankruptcy, alleged victims were 15 students from 1960s who accused Bishop Soens who denied the accusations.[12][13]
2006, DecPhoenix, AZ$100,0001[14]
2006, DecLos Angeles, CApriests$60 million45
2007Los Angeles, CAFather Mark Falvey$16 million9ordered to pay[15]
2007, Jan 15Charleston, SCpriests$12 millionmanyBishop Robert J. Baker agreed to pay[16]
2007, Jul 16Los Angeles, CA$660 million508 (over)Archbishop Roger Mahony and the Los Angeles diocese apologized for abuses by priests describing them as "terrible sin and crime", after settling with over 508 alleged victims[17][18]
2007, Feb 27San Diego, CARobert Brom$198.1 million144Filed for Chapter 11 protection, hours before the first of about 150 lawsuits about childhood abuse was due to be heard — it became the largest diocese to seek bankruptcy protection.[19]
2008, Mar 7Fairbanks, AK130Filed for bankruptcy due to monetary concerns over 130 lawsuits made by Alaska natives claiming to have been abused by priests, and other church employees

[20]

2008, May 29Sacramento, CAFrs. Arthur & Mark Falvey$100,0001The Jesuit religious order paid $100,000 to a person who alleged he was raped and molested from age 7–11 at St Ignatius Parish, by identical twin brother priests Fr. Arthur Falvey of Sacramento, and Fr. Mark Falvey of Los Angeles

[21]

2009, FebMemphis, TNFr Juan Carlos Duran$2 million1Fr. Duran had previous sexual history with minors in St. Louis, Panama and Bolivia[22]
2009, OctSavannah, GAWayland Brown$4.24 million1[23]
2018, SeptNew York, NYAngelo Serrano$27.5 million4Largest settlement against the Catholic Church and second largest individual sum paid[24]
Total$1.296 billion(over) 1,839

Bankruptcies

Portland

Citing monetary concerns arising from impending trials on sex abuse claims, the Archdiocese of Portland (Oregon) filed for Chapter 11 bankruptcy on July 6, 2004, hours before two abuse trials were set to begin, becoming the first Roman Catholic diocese to file for bankruptcy. If granted, bankruptcy would mean pending and future lawsuits would be settled in federal bankruptcy court. The archdiocese had settled more than a hundred previous claims for a sum of over $53 million. The filing seeks to protect parish assets, school money and trust funds from abuse victims; the archdiocese's contention is that parish assets are not the archdiocese's assets. Plaintiffs in the cases against the archdiocese have argued that the Catholic Church is a single entity, and that the Vatican should be liable for any damages awarded in judgment of pending sexual abuse cases.

Tucson

The Diocese of Tucson filed for bankruptcy in September 2004. The diocese reached an agreement with its victims, which the bankruptcy judge approved June 11, 2005, specifying terms that included allowing the diocese reorganization to continue in return for a $22.2 million settlement.[25]

Spokane

In December 2004, the Diocese of Spokane, Washington agreed to pay at least $48 million as compensation to those abused by priests as part of its bankruptcy filing. This payout has to be agreed upon by victims and another judge.[26]

Davenport

On October 10, 2006, the Diocese of Davenport filed for Chapter 11 protection.[12] The decision to file for bankruptcy was driven by many claims which focused on Bishop Lawrence Soens, who had been accused of fondling as many as 15 students during his tenure as priest and principal at Regina Catholic High School in Iowa City during the 1960s. Soens denies the allegations. A judge discharged one suit in October 2006.[27]

San Diego

On February 27, 2007, the Diocese of San Diego filed for Chapter 11 protection, hours before the first of about 150 lawsuits was due to be heard. San Diego became the largest diocese to postpone its legal problems in this way.[28]

Fairbanks

On March 7, 2008, the Diocese of Fairbanks filed for bankruptcy after 130 civil suits filed by Alaska natives who claim to be abused by priests, and other church employees, beginning in the 1950s.[29]

Oregon Province of the Jesuits

In February 2009, the Society of Jesus' Oregon Province, which also was based in other states, filed for Chapter 11 bankruptcy as well.[30] The Province agreed in 2011 to pay $166 million to sex abuse victims[31]

Wilmington

On October 18, 2009, the Diocese of Wilmington filed for bankruptcy as the first of some eight lawsuits (of more than 100 potential) was scheduled to go to trial the next day.[32][33][34]

Congregation of Christian Brothers (North America)

In 2011, the North American chapter of the Congregation of Christian Brothers filed for Chapter 11 bankruptcy due to the financial burden caused by sex abuse lawsuits.[35] In 2013, the North American chapter agreed to pay approximately $16.5 million in damages to more than 400 men and women who were sexually or physically abused as children by members of the order.[36] Between 2006 and 2011, the order had also paid approximately 25.6 million to victims in 50 abuse cases[36]

Milwaukee

On January 4, 2011, the Archdiocese of Milwaukee announced that it would be filing for bankruptcy. The church was facing more than 23 lawsuits, and attempts to reach a mediated settlement with victims failed in December 2010. This came two days before the bishop was scheduled to be deposed about these cases, and after the church had refused to release the names or personnel records of the priests accused. The opposing attorney said that the bankruptcy filing was an attempt to delay turning over church records on the cases.

The Milwaukee archdiocese has already paid out over $29 million to settle 200 cases over the last 20 years. They said that these additional cases would cause hefty legal fees that the archdiocese could not afford. The archdiocese has assets of about $98.4 million, but $90 million of that is restricted for specific uses.[37]

Stockton

In 2014, the Roman Catholic Diocese of Stockton filed for Chapter 11 Bankruptcy.[38] Under the bankruptcy agreement, which received court approval in 2017,[38] a payout of 15 million was given to over two dozen sex abuses [39]

Ecclesiastical Province of Saint Paul and Minneapolis
  • The Archdiocese of Saint Paul and Minneapolis filed for Chapter 11 bankruptcy reorganization on January 17, 2015.[40][41][42][43]
  • The Diocese of Duluth filed for Chapter 11 bankruptcy protection on December 7, 2015.[44]
  • On March 3, 2017, the Diocese of New Ulm filed for Chapter 11 bankruptcy protection following numerous lawsuits surrounding sex abuse by Catholic clergy in the area.[45] New Ulm follows the Duluth Diocese and the Archdiocese of St. Paul and Minneapolis, thus making Minnesota the first state in the United States of America to have three Roman Catholic dioceses file for bankruptcy protection.[45]
  • The Roman Catholic Diocese of Saint Cloud announced on February 28, 2018 that it would file for bankruptcy amid claims of sex abuse.[46] The Diocese then filed on March 5, 2019.[47] On May 26, 2020, it was agreed that the Diocese could undergo bankruptcy if $22.5 million was forfeited to compensate 70 sex abuse survivors.[48]
  • In November 2018, the Roman Catholic Diocese of Winona-Rochester released a statement claiming that the Diocese would soon file for Chapter 11 bankruptcy due to the financial burden caused by ongoing sex abuse lawsuits.[49] The Diocese then officially filed for bankruptcy in December 2018.[50]

Archdiocese of Agaña

On January 15, 2019 it was announced that the Roman Catholic Archdiocese of Agaña in Guam filed for Chapter 11 bankruptcy due to the financial burden created by the overwhelming amount of sex abuse lawsuits.[51]

Diocese of Rochester

On September 12, 2019, sex abuse lawsuits forced the Roman Catholic Diocese of Rochester for Chapter 11 Bankruptcy.[52][53] The Diocese is the first Catholic diocese in the state of New York to file for bankruptcy and also the 20th Catholic diocese in the U.S. states to do so as well.[53]

Diocese of Harrisburg

On February 19, 2020, the Diocese of Harrisburg filed for Chapter 11 bankruptcy protection after disclosing to federal bankruptcy court it has more than 200 creditors and estimated liabilities between $50 million and $100 million, with assets of less than $10 million. The Harrisburg Diocese was the first Catholic diocese in Pennsylvania to seek bankruptcy protection.[54]

Diocese of Buffalo

On February 28, 2020, the Diocese of Buffalo filed for bankruptcy as a result of numerous sexual abuse lawsuits.[55]

Archdiocese of New Orleans

On May 1, 2020, the Archdiocese of New Orleans filed for bankruptcy in part due to pending sex abuse lawsuits.[56][57]

Others
  • The Diocese of Gallup, New Mexico filed for bankruptcy protection on November 12, 2013.[58]
  • The Diocese of Helena filed for bankruptcy protection on January 31, 2014 to resolve more than 362 claims.[59][60]
  • The Diocese of Great Falls-Billings filed for bankruptcy protection in 2017[61]
  • In 2017, the Minnesota and Arizona chapters of the order of Crosier Fathers and Brothers, which also serve as major locations for the order's United States chapter, filed for bankruptcy after agreeing to pay sex abuse victims $25.5 million[62][63][64]
  • The Archdiocese of Santa Fe announced it would file for bankruptcy protection on November 29, 2018,[65] and then did so in June 2019 to resolve 395 cases of sex abuse.[66]

See also

References
  1. Cozzens, Donald B. (2000). The changing face of the priesthood: A reflection on the priest's crisis of soul. Liturgical Press. p. 125.
  2. Hogan, Susan (April 4, 2002). "Some Dallas churches not checking personnel. Catholic diocese policy regarded as a model; firm hired to gauge parishes' compliance". The Dallas Morning News.
  3. Smith, Peter (April 4, 2002). "Archdiocese to pay victims $25.7 million for sex abuse". Courier-Journal. Louisville, Kentucky.
  4. Boston archdiocese agrees to pay a record $85 million to victims of abuse Archived 2012-10-16 at the Wayback Machine US News and World Report
  5. Rotstein, Arthur H. (September 21, 2005). "Tucson Diocese emerges from Chapter 11 protection". Associated Press. Retrieved February 8, 2012.
  6. US Church offers abuse settlement BBC NEWS
  7. http://www.cbsnews.com/stories/2004/11/23/national/main657155.shtml California Diocese Settles Abuse Cases
  8. "Orange Diocese to release files in $100 million settlement". The Tidings Online. Retrieved 2009-04-08.
  9. Grace, Francis (2004-12-03). "California Diocese Settles Abuse Cases". CBS News. Retrieved 2009-04-09.
  10. Orange County Weekly. Nailed? Bishop Tod Brown and His Undisclosed Molestation Accusation Archived 2008-07-26 at the Wayback Machine April 24, 2007
  11. Los Angeles Times. ‘97 abuse claim named O.C. bishop September 14, 2007
  12. "Iowa Diocese Files For Bankruptcy". CBS News. October 10, 2006.
  13. Radio Iowa: Judge throws out Iowa City Regina priest suit Archived 2007-09-27 at the Wayback Machine
  14. "Catholic Diocese of Phoenix Settles Sex-Abuse Claim". Arizona Daily Star. December 27, 2006.
  15. Spano, John (May 18, 2007). "Jesuits agree to sex case payout". Los Angeles Times. Retrieved February 8, 2012.
  16. http://www.catholic.org/diocese/diocese_story.phpid=22894
  17. http://www.pr-inside.com/parishioners-react-to-los-angeles-archdiocese-s-r172959.htm
  18. "LA cardinal offers abuse apology". BBC News. 2007-07-16. Retrieved 2008-03-08.
  19. http://www.signonsandiego.com/news/metro/20070907-1449-bn07diocese3.html S.D. Catholic diocese files for bankruptcy
  20. http://www.catholicnewsagency.com/new.php?n=11791
  21. http://www.sacbee.com/news/local/education/article222796750.html
  22. http://www.commercialappeal.com/news/2010/apr/08/troubled-traveler-abusive-priest-reassigned-than/
  23. SavannahNow.com. Diocese to pay $4M for abuse October 29, 2009
  24. https://www.christianpost.com/news/catholic-church-pays-out-record-setting-settlement-27-5-million-4-abused-boys.html
  25. Tucson Diocese emerges from Chapter 11 protection
  26. "US Church offers abuse settlement". BBC News. January 5, 2007. Retrieved May 23, 2010.
  27. Radio Iowa: Judge throws out Iowa City Regina priest suit Archived 2007-09-27 at the Wayback Machine
  28. SignOnSanDiego.com > News > Metro - S.D. Catholic diocese files for bankruptcy
  30. https://www.ncronline.org/news/accountability/jesuits-oregon-province-files-bankruptcy
  31. https://www.oregonlive.com/portland/2011/03/northwest_jesuits_will_pay_166.html
  34. Urbina, Ian (October 20, 2009). "Delaware Diocese Files for Bankruptcy in Wake of Abuse Suits". The New York Times. Retrieved May 23, 2010.
  35. https://www.reuters.com/article/us-church-brothers-sexabuse/catholic-christian-brothers-order-files-for-bankruptcy-idUSTRE73S0XV20110429
  36. https://www.usatoday.com/story/news/nation/2013/05/23/catholic-abuse-christian-brothers-settlement/2356003/
  37. Ramde, Dinesh (January 4, 2011). "Milwaukee archdiocese to seek bankruptcy protection in wake of pending sexual-abuse lawsuits". Minneapolis StarTribune. Retrieved January 5, 2011.
  38. http://www.pszjlaw.com/creditor-64.html
  39. https://www.uniondemocrat.com/localnews/4976000-151/embattled-stockton-diocese-nears-bankruptcy-exit-attorneys-and
  40. Hopfensperger, Jean (17 Jan 2015). "St. Paul Archdiocese declares bankruptcy, calling it 'fairest' recourse". Minneapolis Star-Tribune.
  41. Corrigan, Tom (16 Jan 2015). "Archdiocese of St. Paul and Minneapolis Files for Bankruptcy". Wall Street Journal.
  42. Bailey, David (16 Jan 2015). "Minnesota Catholic archdiocese files for bankruptcy protection". Reuters.
  43. "St. Paul-Minneapolis Archdiocese files for bankruptcy in wake of sex abuse claims". Washington Post. 16 Jan 2015.
  44. http://www.duluthnewstribune.com/news/3898226-diocese-duluth-files-bankruptcy
  45. http://www.startribune.com/new-ulm-diocese-files-for-bankruptcy-protection/415333274/
  46. https://minnesota.cbslocal.com/2018/02/28/st-cloud-diocese-bankruptcy/
  47. https://www.catholicnewsagency.com/news/st-cloud-is-4th-minnesota-diocese-to-declare-bankruptcy-amid-abuse-lawsuits-30928
  48. https://www.mprnews.org/story/2020/05/26/st-cloud-diocese-reaches-agreement-on-sex-abuse-claims
  49. https://www.winonadailynews.com/news/local/diocese-of-winona-rochester-to-file-for-bankruptcy/article_02a13d71-15a1-5513-a236-87ee8b9cc0bb.html
  50. https://www.mnb.uscourts.gov/sites/mnb/files/DWR%20Claims%20Procedures%20%5B13%5D.pdf
  51. https://www.usatoday.com/story/news/nation/2019/01/15/archdiocese-agana-files-bankruptcy-pay-clergy-sex-abuse-claims/2587462002/
  52. Orr, Steve (September 12, 2019). "Diocese bankruptcy: Matano says it was 'a very difficult and painful decision'". Rochester Democrat and Chronicle. Retrieved September 14, 2019.
  53. https://www.usatoday.com/story/news/nation/2019/09/12/catholic-sex-abuse-rochester-diocese-files-bankruptcy-protection/2308133001/
  54. Scolforo, Mark. "Another Catholic diocese seeks bankruptcy after abuse deals", AP News, Harrisburg, PA, February 19, 2020. Retrieved on March 3, 2020.
  55. "Catholic Diocese of Buffalo files for bankruptcy, acknowledges over 500 claims of clergy abuse". WGRZ. Retrieved 2020-03-01.
  56. https://www.nola.com/news/article_218195d2-8b32-11ea-91a1-9f3a0d4bb562.html
  57. https://www.fox8live.com/2020/05/01/attorneys-alleged-victims-church-sex-abuse-respond-archdiocese-new-orleans-bankruptcy-filing/
  58. http://ncronline.org/news/faith-parish/new-mexico-diocese-begins-bankruptcy-process
  59. http://missoulian.com/news/local/montana-catholic-diocese-files-for-bankruptcy-protection-from-abuse-claims/article_b4e4d080-8a91-11e3-b8fe-0019bb2963f4.html
  60. http://www.bishop-accountability.org/news5/2014_01_31_Datsopoulos_Roman_Catholic.pdf
  61. https://www.mtb.uscourts.gov/news/roman-catholic-bishop-great-falls-billings-aka-diocese-great-falls-chapter-11-filing
  62. http://www.startribune.com/decades-after-abuse-crosiers-agree-to-25-5-million-settlement-with-survivors-file-bankruptcy/425775383/
  63. https://www.crosier.org/index.php/en/about/crosier-news/crosier-statements/2-uncategorised/350-crosiers-emerge-from-chapter11-bankruptcy
  64. https://www.inforuptcy.com/filings/mnbke_438859-4-17-bk-41681-crosier-fathers-and-brothers-province-inc
  65. http://amp.lcsun-news.com/amp/2162051002
  66. https://cruxnow.com/church-in-the-usa/2019/06/22/395-claims-filed-in-church-bankruptcy-case/
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