Bankruptcy judge OKs Tucson Diocese's abuse claim settlements

Published: 2005-06-16

TUCSON, Ariz. (CNS) -- A bankruptcy judge in Arizona June 14 approved settlements by the Diocese of Tucson totaling about $9.8 million for 30 people who filed claims of sexual abuse by priests or other diocesan employees. Under the 28 settlements approved by federal bankruptcy Judge James M. Marlar, the $9.8 million in settlements would be paid if the diocese's plan to emerge from Chapter 11 bankruptcy is approved by creditors and affirmed by the judge. Some of those 28 claims represented more than one person. The settlements came in lawsuits already in the works before the diocese filed for bankruptcy in September 2004. Another 73 cases were filed by a court-ordered deadline of April 15, making 103 claims against the diocese. Under the plan agreed upon June 14, 25 claimants will receive amounts ranging from $200,000 to $600,000 each, depending upon where they were placed in a five-tier settlement plan. Five victims would receive $600,000 each. Five parents of victims would receive 5 percent of what is awarded to their children, or $21,500 or $30,000 each. Final disbursements could be higher, depending upon how large the final available pool of money is. It will include insurance settlements, parish contributions and income from the sale of church-owned property in May. As of June 16, the diocese had not released a figure for how much the land sales raised.

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