This article details the settlement of 11 of 16 cases against the San Bernardino diocese. The eleven will share a $15,000,000 settlement. As a member of this diocese I am grateful that this matter is nearly over.
Most of the article focuses on one victim and her continued suffering.
One small blurb burried in the article explains that half of the $15,000,000 settlement will come from insurance carriers and the other half from dioscesan reserve funds. The diocese apparently released a statement saying that weekly donations will not be used to pay the settlement. Given the extreme pain and suffering of the victims I can't help but feel uncomfortable with this focus. Nevertheless, it is an interesting issue from the laws' perspective. As background, the article says that the San Diego diocese is prepared to settle its 133 cases for 198.1 million dollars. The San Diego diocese recently went bankrupt and apparently used the leverage of bankruptcy to get the settlement. What makes this interesting is that in bankruptcy it is typically the case that creditors get paid at least the liquidation value
of the debtor's assets. In the context of a diocese, doesn't this mean that all the local parishes' real estate have to be appraised to give the liquidation value? It is no secret that some of the victims' attorneys wanted to do exactly this, i.e., sale property. Can you imagine how terrible it would be for parishioners who had nothing to do with the abuse to lose their parish church? One argument against this that the local parish is held by the diocese in trust for the parishioners.
I am not aware of any parishes actually being sold any where in the US. I am grateful that this sordid matter does look like it is coming to an end.
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