Spokane becomes third U.S. diocese to file for bankruptcy

Published: 2004-12-07

SPOKANE, Wash. (CNS) -- The Diocese of Spokane became the third U.S. diocese to file for Chapter 11 bankruptcy because of civil lawsuits claiming sex abuse of minors by clergy. "Demands by the plaintiffs continue to be beyond the ability of the diocese to meet," said Spokane Bishop William S. Skylstad in announcing the decision Dec. 6. The Spokane Diocese listed $81.3 million in liabilities and $11.1 million in assets in papers filed the same day with the U.S. Bankruptcy Court of the Eastern District of Washington. News reports said that $77 million of the liabilities result from sex abuse suits. Filing for Chapter 11 bankruptcy means the lawsuits are halted and the federal bankruptcy court will determine how much to pay valid claimants. In November Bishop Skylstad was elected president of the U.S. Conference of Catholic Bishops. The other two dioceses to file for bankruptcy are the Archdiocese of Portland, Ore., and the Diocese of Tucson, Ariz.

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