Portland-area Catholics testify in archdiocesan bankruptcy case

Published: 2005-10-24

PORTLAND, Ore (CNS) -- Parish properties belong to the parishes themselves, not to the Archdiocese of Portland, Catholic parishioners told a federal bankruptcy court at a mid-October hearing. All 390,000 Catholics in the archdiocese are class-action defendants in the archdiocese's bankruptcy case. The archdiocese filed for Chapter 11 federal bankruptcy protection last July to settle sexual abuse claims against it. Chapter 11 of the U.S. Bankruptcy Code allows the archdiocese to reorganize financially. The small group of parishioners who spoke at the Oct. 11 court hearing echoed what the archdiocese, the parishes and canon law say -- parish assets belong to the parishes, not the archdiocese. But lawyers for abuse claimants contend the archdiocese owns parishes in western Oregon the way a company owns subsidiaries. That would mean the parish and school assets, valued at more than $450 million, could be added to the archdiocese's holdings, significantly driving up settlement amounts for those judged to be victims.

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