http://www.latimes.com/features/religion/la-na-spokane27aug27,1,4890191.story?coll=la-news-religionSpokane Judge Lifts Diocese's Bankruptcy Shield
Churches and other assets may be liquidated to settle abuse claims.
An appeal is expected.
By Sam Verhovek and Jean Guccione, Times Staff Writers
SEATTLE — Handing a major legal victory to victims of sexual abuse by
Catholic priests, a federal bankruptcy judge said Friday that
churches, parochial schools and other assets belonged to a diocese —
not individual parishes or trusts — and thus could be liquidated if
necessary to pay victims.
The ruling applied specifically to the bankrupt Diocese of Spokane,
Wash., which is facing settlement of lawsuits brought by 58 people who
said they were sexually abused by priests.
The diocese said it would file an immediate appeal. But if the ruling
is upheld, it could have broad implications for other dioceses
staggering under the weight of sexual-abuse lawsuits, because it
undercuts the Roman Catholic Church's claim, reiterated in a Vatican
finding this month, that most assets in individual dioceses cannot be
put up for sale to settle claims.
The Vatican said investments and real estate such as churches and
schools belonged to individual parishes.
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