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Despite lawsuits, dioceses survive

They're paying abuse settlements without cutting ministries.

By ASSOCIATED PRESS
Published July 17, 2007

The cost of clergy sex abuse for America's Roman Catholic Church has hit a breathtaking new benchmark: The settlement approved Monday in the Archdiocese of Los Angeles has pushed the price beyond $2-billion nationwide.

Yet predictions of parish closings and Catholic charities being shut down were wrong. Even in the five dioceses that went into bankruptcy protection from abuse claims, church leaders have found a way to fund the payouts and survive.

"No diocese has closed up shop," said Russell Shaw, a former spokesman for the U.S. Conference of Catholic Bishops. "No chancery offices have ceased operations."

To pay the bills for abuse cases, several dioceses have sold off property, although the sales did not appear to take a direct toll on church ministries.

The Archdiocese of Boston, where the 2002 case of one accused priest triggered a nationwide crisis, sold its ornate bishop's mansion and 46 acres of property in Brighton. The Diocese of Covington, Ky., sold 226 acres used for retreats and other activities to help fund an $85-million deal.

In the $660-million Los Angeles deal - easily the largest payout yet - Cardinal Roger Mahony said the settlement will not have an impact on local ministries. He said he won't sell parish properties or schools to cover the cost, but the archdiocese will have to sell buildings, use some of its invested funds and borrow money.

The Los Angeles archdiocese will pay $250-million, insurers will pay $227-million and religious orders will chip in $60-million. The remaining $123-million will come from litigation with religious orders that chose not to participate in the deal, which a California judge approved Monday.

In a few regions, parishioners - some willingly, others reluctantly - agreed to kick in funds, mainly to avoid being forced to sell their parishes or schools.

Under a bankruptcy reorganization in the Diocese of Spokane, Wash., 82 parishes agreed to pay $10-million of a $48-million settlement with victims. The diocese is the smallest and poorest of five nationwide that filed for bankruptcy. The others are Davenport, Iowa; San Diego; Tucson, Ariz., which has settled its cases; and Portland, Ore., which also has settled.

Victims' advocates note that dioceses' ability to fund the settlements challenges claims by church leaders that the lawsuits would destroy the church.

"They have a lot more resources than they've publicly acknowledged," said the Rev. Tom Doyle, a church insider turned victims' advocate.

[Last modified July 17, 2007, 00:45:27]