Judge asks Spokane to redo child sex abuse settlement plan

Published: 2006-04-24

SPOKANE, Wash. (CNS) -- The Spokane Diocese has to restructure its settlement offer to people claiming that they were abused as minors by clergymen, ruled U.S. Bankruptcy Judge Patricia Williams. She said the $45.7 million plan did not treat all claimants fairly because it favored one group over another. Another hearing on the matter has been set for May 15. On Feb. 1, the diocese offered the settlement to 75 claimants. Since then the diocese has received more than 100 other claims, which it is reviewing to see if there is enough evidence to justify the claims. "This settlement violates a rule that requires fair treatment," she said April 21. Williams told attorneys for the diocese and for the plaintiffs that she expected them to come up with a solid settlement plan by autumn, before the second anniversary of the diocese's filing for Chapter 11 protection from bankruptcy. The diocese's bankruptcy filing was announced Dec. 6, 2004. Under Chapter 11 proceedings a bankruptcy judge has to approve any settlements in clergy child sex abuse cases and oversees the reorganization of diocesan finances.

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