Spokane sex abuse bankruptcy case settled for $48 million

Published: 2007-01-05

RENO, Nev. (CNS) -- Judge Gregg W. Zive said Jan. 4 that the Diocese of Spokane, Wash., and those with sexual abuse claims against the diocese have reached a $48 million settlement. Zive, chief bankruptcy judge of the U.S. Bankruptcy Court for the District of Nevada, had been mediating the case since last July under mandate from the federal bankruptcy court in Spokane. He said the agreement reached Jan. 4 must still be confirmed by the court in Spokane and by creditors in accord with provisions of the U.S. Bankruptcy Code. "The economic portion of the global settlement totals at least $48 million and provides a mechanism for the payment of future claims," he said. He said parishes of the diocese will have to raise $10 million to contribute to the settlement. The Spokane Diocese has nearly 100,000 Catholics served by 82 parishes, so the cost to the parishes, who depend on contributions for their income, works out to an average of about $100 per Catholic.

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