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Diocese settles abuse claims for $198M
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CommentSAN DIEGO — The Roman Catholic Diocese of San Diego agreed Friday to pay nearly $200 million to 144 people who were sexually abused by clergy members, the second-largest payment since the U.S. abuse scandal erupted five years ago.
The $198.1 million agreement capped more than four years of negotiations in state and federal courts and came six months after the diocese filed for bankruptcy protection just hours before the first of 42 lawsuits was scheduled for trial.
The $198.1 million agreement capped more than four years of negotiations in state and federal courts and came six months after the diocese filed for bankruptcy protection just hours before the first of 42 lawsuits was scheduled for trial.
Victims expressed relief that a settlement was reached — but also anger that it took so long.
“They knew all along that I’d been molested, so to put me through this is unconscionable,” said Michael Bang of Atlanta.
“They knew all along that I’d been molested, so to put me through this is unconscionable,” said Michael Bang of Atlanta.
The diocese had sought to protect its assets in bankruptcy court, but quickly found it a rough venue before a judge who criticized the church for bookkeeping practices, undervaluing real estate holdings and failing to disclose facts.
U.S. Bankruptcy Judge Louise DeCarl Adler recently threatened to dismiss the case if an agreement was not struck by Tuesday in a last-ditch round of talks before a federal magistrate judge. Several victims also participated in the negotiations.
U.S. Bankruptcy Judge Louise DeCarl Adler recently threatened to dismiss the case if an agreement was not struck by Tuesday in a last-ditch round of talks before a federal magistrate judge. Several victims also participated in the negotiations.
The San Diego diocese initially offered about $95 million to settle the claims. The victims were seeking about $200 million.
The church wanted to settle the lawsuits fairly while also maintaining programs and services, Bishop Robert Brom said in a news release.
“We pray that this settlement will bring some closure and healing to the years of suffering experienced by these victims,” he said.
The diocese will withdraw its bankruptcy filing as part of the agreement, Brom said.
At a news conference, the bishop apologized to victims.
“I’m very, very sorry for the suffering we have caused them, and I pray they will walk with God for a renewed life,” he said.
The San Diego diocese will pay $153 million to settle 111 cases involving its own clergy and $30 million for 22 cases involving members of Catholic orders, church officials said. Insurance will pay about $75 million, and the rest will be raised through land sales and loans.
The Diocese of San Bernardino, a defendant in some of the cases, will pay $15 million to settle the other 11 claims, all for abuse that occurred after 1978, when San Bernardino split from the San Diego diocese.
“We hope the resolution of these cases will bring a measure of peace and, we hope, a degree of healing and closure for the victims,” said the Rev. Howard Lincoln, a spokesman for the San Bernardino diocese.
The settlement averages about $1.4 million per claimant, slightly higher than what plaintiffs received in other California settlements. The first payments are due in January.
“We shouldn’t have had to go through all this,” said Betty Schneider, 62, of Temecula, who said she was molested when she was a 10-year-old member of her church choir. “I have grandkids the same age I was, and I hope all this helps kids to be protected better than we were protected.”
Documents proving the abuse and the extent of church officials’ knowledge that it was happening will also be publicly released as part of the agreement, both sides said.
In the largest payment yet in the scandal, the Los Angeles Archdiocese settled 508 cases for $660 million in July, two days before jury selection was scheduled to begin in the first of 15 trials involving 172 abuse claimants there.
The Diocese of Orange agreed in 2004 to settle 90 claims for $100 million after a judge promised to set trial dates and begin the discovery process if settlement talks collapsed. Bishop Tod D. Brown later said he couldn’t risk a trial in a state where a jury once awarded $30 million to two people who claimed they were sexually abused by clergy.
The Diocese of San Diego, with nearly 1 million Catholics and holdings throughout San Diego County, is by far the largest and wealthiest of the five U.S. dioceses to have filed for Chapter 11 bankruptcy protection under the shadow of civil claims over sexual abuse.
Dioceses in Spokane, Wash., Portland, Ore., and Tucson, Ariz., have already emerged from Chapter 11 bankruptcy protection. The Davenport, Iowa, diocese, which faces claims from more than 150 people, is still in proceedings.
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Associated Press writer Thomas Watkins in Los Angeles contributed to this report.
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On the Net:
San Diego Roman Catholic Diocese: http://www.diocese-sdiego.org
The church wanted to settle the lawsuits fairly while also maintaining programs and services, Bishop Robert Brom said in a news release.
“We pray that this settlement will bring some closure and healing to the years of suffering experienced by these victims,” he said.
The diocese will withdraw its bankruptcy filing as part of the agreement, Brom said.
At a news conference, the bishop apologized to victims.
“I’m very, very sorry for the suffering we have caused them, and I pray they will walk with God for a renewed life,” he said.
The San Diego diocese will pay $153 million to settle 111 cases involving its own clergy and $30 million for 22 cases involving members of Catholic orders, church officials said. Insurance will pay about $75 million, and the rest will be raised through land sales and loans.
The Diocese of San Bernardino, a defendant in some of the cases, will pay $15 million to settle the other 11 claims, all for abuse that occurred after 1978, when San Bernardino split from the San Diego diocese.
“We hope the resolution of these cases will bring a measure of peace and, we hope, a degree of healing and closure for the victims,” said the Rev. Howard Lincoln, a spokesman for the San Bernardino diocese.
The settlement averages about $1.4 million per claimant, slightly higher than what plaintiffs received in other California settlements. The first payments are due in January.
“We shouldn’t have had to go through all this,” said Betty Schneider, 62, of Temecula, who said she was molested when she was a 10-year-old member of her church choir. “I have grandkids the same age I was, and I hope all this helps kids to be protected better than we were protected.”
Documents proving the abuse and the extent of church officials’ knowledge that it was happening will also be publicly released as part of the agreement, both sides said.
In the largest payment yet in the scandal, the Los Angeles Archdiocese settled 508 cases for $660 million in July, two days before jury selection was scheduled to begin in the first of 15 trials involving 172 abuse claimants there.
The Diocese of Orange agreed in 2004 to settle 90 claims for $100 million after a judge promised to set trial dates and begin the discovery process if settlement talks collapsed. Bishop Tod D. Brown later said he couldn’t risk a trial in a state where a jury once awarded $30 million to two people who claimed they were sexually abused by clergy.
The Diocese of San Diego, with nearly 1 million Catholics and holdings throughout San Diego County, is by far the largest and wealthiest of the five U.S. dioceses to have filed for Chapter 11 bankruptcy protection under the shadow of civil claims over sexual abuse.
Dioceses in Spokane, Wash., Portland, Ore., and Tucson, Ariz., have already emerged from Chapter 11 bankruptcy protection. The Davenport, Iowa, diocese, which faces claims from more than 150 people, is still in proceedings.
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Associated Press writer Thomas Watkins in Los Angeles contributed to this report.
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On the Net:
San Diego Roman Catholic Diocese: http://www.diocese-sdiego.org
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