Civil, church law may come in conflict in church's bankruptcy filing

Published: 2004-07-22

PORTLAND, Ore. (CNS) -- The bankruptcy filing by the Archdiocese of Portland is almost certain to place church law and civic law in conflict. The two legal systems have met before in Oregon, and churches have often prevailed. In one instance, Catholic hospitals worked for the right to opt out of physician-assisted suicide, which was legalized in Oregon in 1997. In another, after Lane County officials tape recorded a murder suspect's sacramental confession in the mid-1990s, the courts eventually ruled the act an undue state intrusion. The debate even goes back to the 1920s, when the U.S. Supreme Court overturned an Oregon law that would have closed down Catholic schools. Judges dealing with the first bankruptcy filing in history by a U.S. Catholic diocese will need to consider canon law against bankruptcy law and First Amendment rights of freedom of religion. Archbishop John G. Vlazny of Portland said the archdiocese filed for Chapter 11 federal bankruptcy protection July 6. The decision came as two lawsuits seeking restitution for childhood sexual abuse by a now-deceased priest of the archdiocese were about to go to trial. One plaintiff was seeking $130 million. The other wanted $25 million. One key issue will be whether the court can dip into the resources of parishes and schools to pay sex abuse plaintiffs.

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