Portland Archdiocese ends bankruptcy with $75 million settlement

Published: 2007-04-19

PORTLAND, Ore. (CNS) -- The first Catholic diocesan bankruptcy proceeding in the nation ended April 17 when a federal judge approved a $75 million settlement of clergy sexual abuse claims and a financial reorganization plan for the Portland Archdiocese. Smoothing the way for U.S. Bankruptcy Judge Elizabeth Perris, lawyers at the last moment negotiated payment for all remaining sex abuse claims. A last case, which was not over sex abuse, was settled just a few hours before the court approval was announced. Since February, lawyers from both sides worked out the two dozen most difficult cases, bringing the total settled claims under the 33-month bankruptcy to 177. Checks will go out to victims at the start of May. The same day the Portland settlement was finalized, all parties to similar bankruptcy proceedings in the Diocese of Spokane, Wash., filed court papers there agreeing to a $48 million settlement of clergy sex abuse claims there. More than 160 victims are reportedly involved in the Spokane settlement.

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