Dr. Anne Hendershott Become a fan Professor, Franciscan University of Steubenville

                          

Another Catholic Scandal?

New York City's faithful Catholics were disheartened yet again as they picked up their daily newspapers December 11th to read the front page headlines--replete with pictures--of a priest accused of involvement in a sex scandal. Sensational banners like New York Post's "Hot Under the Collar," and "Sex Slave Priest's $50 Shades of Pray," along with the New York Daily News headline: "Exclusive: Bronx Priest Stole More than $1 million from Two NYC Churches, Used the Cash on Wild S & M Romance with Beefy Boyfriend," cannot help but demoralize the faithful.

The revelations surfaced last week when a lawsuit was filed by parishioners from St. Frances de Chantal Church in Throgs Neck naming their pastor, the Rev. Peter Miqueli of theft and misconduct. They were joined in the lawsuit against the pastor by parishioners from his former parish, St. Francis Cabrini, on Roosevelt Island. The lawsuit also names the Archdiocese of New York for failing to protect parishioners from the theft. Also named is a Bronx doctor, who is also a Church trustee, who allegedly provided the pastor and his alleged partner with more than $60,000 worth of Dilaudid, club drugs, and other illegal drugs.
According to Michael Dowd, the attorney representing the parishioners, "These charges of theft and misconduct have been made for at least 10 years...It is unbelievable that the diocese can't come to a conclusion about the misconduct of Misqueli when there is money missing that may be a million dollars."
The lawsuit suggests that the Archdiocese has been reluctant to respond to their complaints--Timothy Cardinal Dolan and the Archdiocese of New York are also named as defendants in the Manhattan court papers. Jack Lynch, a Bronx parishioner told a reporter , "We can't understand it. It seems they are going out of their way to protect him, and for years. We suspect a scandal behind the scandal."
Continuing the story, December 12th's front page New York Post article ("Sermon of the Mount") reveals claims by Tatyana Gudin, a spurned ex-girlfriend of Keith Crist, Fr. Miqueli's same sex paramour, that she sent emails to Cardinal Dolan last summer detailing the lurid details of the scandalous affair and suggesting that Fr. Miqueli was stealing money from the parishes he pastored. Fr. Miqueli finally resigned later that day.
Defending the Archdiocese, Joseph Zwilling, media director for the New York Archdiocese issued a statement to parishioners claiming that: To date we have found nothing to substantiate the allegations that have been raised and in fact with regard to parish finances, we know that the allegation that Fr. Miqueli stole $1 million from each parish, as was alleged by the plantiff's [sic] attorney, is completely false. We did find that Father Miqueli had deficient management and administrative practices, and have put forward several directives to remedy those deficiencies." Zwilling concluded his letter to parishioners to ask that "if anyone has information or documentation to substantiate the allegations, we would invite them to bring that information forward, or to contact the D. A."
Cardinal Dolan has acknowledged receiving the emails last summer--and turning them over to the prosecutor's office. But, he did not remove Fr. Miqueli from his position as pastor. According to the Post, Cardinal Dolan said he was "upset the allegations against Miqueli were outed before a probe could be completed. What distresses me, is the innuendo that the archdiocese is taking this with anything less than the gravity it deserves...We've been cooperating with these people. We've had a number of audits. And we're prepared to arrive at a resolution within the first of the year."
It is becoming ever more difficult for Catholics to know what to believe about these kinds of issues--especially when some Catholic leaders seem so reluctant to share information. Just last summer, a popular and highly respected priest, Monsignor Michael F. Hull, the pastor of the Church of the Guardian Angel in Chelsea, Professor of Sacred Scripture at St. Joseph's Seminary, and Executive Director of the Sheen Center, a 25, 000 square foot arts center in New York City abruptly left the priesthood. In March, 2014, Hull had been the subject of a laudatory Wall Street Journal article on the magnificent Sheen Center. Several bloggers have reported on what they called his "disappearance," including Matt C. Abbott at RenewAmerica, and Maureen Mullarkey at First Things. In "The Case of the Missing New York Monsignor," Abbott writes that phone calls to the the Seminary at Dunwoodie and the parish "elicited only the comment that Monsignor Hull was no longer there." In First Things on July 27th, 2015, Mullarkey charged that "Monsignor Hull misspent parish funds on a palatial renovation of his rectory only to go AWOL with a young intern at the newly created Sheen Center. Now, married, he is a priest in the Scottish Episcopal Church. Once the darling of Cardinal Egan, Hull was sheltered behind institutional silence. No word of his canonical status appeared in letters to priests or in Catholic New York, the Archdiocesan house organ."
Unfortunately, during the same month that Mullarkey published her column on Monsignor Hull in First Things, and Tatyana Gudin was sending the incriminating emails to the Archdiocesan offices, Cardinal Dolan began his Annual Report (published in Catholic New York on July 23, 2015), with the statement that: "The Archdiocese of New York is joyful, alive, and growing."
Indeed, it is what Mullarkey has called the "institutional silence" that has most angered faithful Catholics in these cases. While we all understand the need for confidentiality, and appreciate the willingness of Archdiocesan offices to fully investigate these kinds of horrific allegations, it is difficult for Catholics to understand the lack of communication from Church officials on issues that directly affect them. Faithful Catholics understand sinners--we are all sinners. Our Church will survive our sinfulness. But, the Church cannot continue the silence surrounding the kind of allegations that have been made against Fr. Miqueli for more than ten years. A lawsuit is not the way to begin the conversation. But, it is clear that parishioners believed there was no other way; and that is the real sadness surrounding this story.

Group asks Rockford Catholic Diocese to seek victims after child sex abuse suit filed - News - Rockford Register Star - Rockford, IL

ROCKFORD — A man who grew up in Aurora claims in a lawsuit filed in Winnebago County Court today that the Rev. John C. Holdren sexually assaulted him in 1972 and 1973.

The 49-year-old man, who lives in Maryland, is identified in court documents as John Doe JP, said his attorney Tim Frieberg of Rockford. The suit alleges that Holdren made unwanted sexual advances and fondled the victim when Holdren was at St. Rita's of Cascia parish in Aurora.

The suit against Holdren, St. Rita and the Diocese of Rockford, seeks damages of more than $50,000.

The suit says the church "knew or should have known of the dangers presented by Fr. Holdren but (failed) to adopt precautionary procedures" and "facilitated and enabled" the priest's crimes.

A news release from Survivors Network of those Abused by Priests, also known as SNAP, said Holdren had not been publicly accused previously of abuse.

Penny Wiegert, director of communications for the Diocese of Rockford, said the Diocese had no comment and that it had not received any information on such a lawsuit. She confirmed that Holdren is not active in the church now and that he resigned in the mid-1990s.

An Aug. 17, 1994, Chicago Tribune story said Holdren resigned from St. John the Baptist Catholic Church in Johnsburg three weeks after he was injured during a home invasion in Aurora. He told police then that a man demanded money and beat him unconscious when he said he had none. He was found by a friend the next morning and treated for head and facial injuries at Copley Memorial Hospital. His 1991 Olds Cutlass was taken and later recovered.

The SNAP group held a news conference this morning outside the Diocese's headquarters on Colman Center Drive urging anyone who "saw, suspected or suffered" the accused priest's crimes to call police. It also is calling on local Catholic officials to use parish bulletins, the church website and pulpit announcements to seek "victims, witnesses and whistle-blowers." Wiegert would not comment on whether the Diocese might consider the request.

In May 2014, the Vatican said it had defrocked 848 priests who raped or molested children and sanctioned an additional 2,572 with lesser penalties.

Georgette Braun: 815-987-1331; gbraun@rrstar.com; @GeorgetteBraun

Group asks Rockford Catholic Diocese to seek victims after child sex abuse suit filed - News - Rockford Register Star - Rockford, IL

 

 

 

 

Priest Attacked In Home Resigns Duties

August 17, 1994

A McHenry County pastor has resigned from his duties, almost three weeks after he was injured during a home invasion in Aurora.

Father John Holdren resigned last week from the position of pastor at St. John the Baptist Catholic Church in Johnsburg "for reasons of his health," said Diocese of Rockford spokesman Owen Phelps.

Holdren, 49, told Aurora police on July 27 that he had been the victim of a home invasion in the 600 block of Lafayette Street in Aurora.

Holdren said he answered the front door on the night of July 26 and a man demanded money, then beat Holdren unconscious when he said he had no money. Holdren was found by a friend the next morning and taken to Copley Memorial Hospital, where he was treated for head and facial injuries.

Holdren's 1991 Olds Cutlass was taken that night and later recovered in the 100 block of South Lincoln Avenue, police said.

The incident was still under investigation Tuesday evening, Aurora police said.

Rev. Robert Balog was appointed parochial administrator for St. John's and has assumed pastoral duties, Phelps said. Holdren became pastor of the 1,500-family parish in 1983.

For the first time, Vatican will judge bishops for sex abuse

JUDY WOODRUFF: Pope Francis has made his most significant move yet to deal with the sexual abuse scandals that have plagued the Catholic Church for more than three decades.

Yesterday, the Vatican announced an unprecedented step that victims have long sought: a tribunal to judge and discipline bishops accused of covering up or failing to act on reports of child sexual abuse.

Hari Sreenivasan has the story.

HARI SREENIVASAN: More than 800 priests have been defrocked over the years, and 2,500 have been penalized. But, until now, no pope has publicly confronted or punished a bishop himself for such offenses.

Several bishops here and aboard are under investigation after being accused of covering up such crimes. A number of victims’ groups supported the move, but some also said it didn’t go far enough.

John Allen closely covers the Vatican. He is an associate editor of The Boston Globe and the Crux, The Globe’s Web site covering the Catholic Church.

So, John, I remember how momentous it was when Pope John Paul II apologized for sexual abuse. How big of a deal is this tribunal that will go after bishops?

JOHN ALLEN, Associate Editor, The Boston Globe: Well, Hari, I think it’s an enormously big deal, if it works as it’s been described.

The central bone of contention among survivors of abuse and their advocacy groups over the years has been that the Catholic Church has adopted very stern policies for abuse. They have officially embraced zero tolerance. Today, if a priest is accused of abusing a minor, he’s going to be yanked out of ministry and probably ultimately kicked out of the priesthood relatively quickly.

Their complaint has been that there hasn’t been a similar system of accountability for bishops who covered up these crimes. And that’s, obviously, the hole that Pope Francis is trying to fill.

We should say, Hari, that Vatican officials have been at pains to insist that this new system is not intended to replace criminal liability in terms of secular law enforcement. That is, if a bishop’s failure to act on a complaint of child abuse constitutes a crime in the place where he lives, the Vatican is saying he still has to face the music for that.

This is intended to ensure that, in addition to that criminal exposure, there is also internal ecclesiastical liability, which typically in practice means that the bishop would lose his job.

HARI SREENIVASAN: OK. So those bishops that could lose their job includes some bishops in the United States that have been caught up in this and accused of covering things up, right?

JOHN ALLEN: Yes, that’s right.

I mean, up until very recently, many people would have argued that the first logical case for this tribunal to take up would have been the case of Bishop Robert Finn of Kansas City-St. Joseph in Missouri, who became the first American bishop to be criminally convicted on a misdemeanor charge of delaying to report a charge of child abuse, and yet for another 2.5 years continued to sit, with no apparent church consequences, as the leader of that dioceses.

Now, in February, Pope Francis accepted his resignation, so Finn has now already lost his position. But another situation that a lot of people would have their eyes would be in the Archdiocese of Saint Paul-Minneapolis in Minnesota, where the archbishop there, Archbishop John Nienstedt, has been accused of knowingly allowing at least two priests, one of whom has been accused of child abuse, the other actually convicted of it, to continue to serve as recently as 2013-2014, which, if true, would be a clear violation of the church’s zero-tolerance policy.

Many people believe that that might be one of the first cases this new tribunal takes up.

HARI SREENIVASAN: OK. So, since this announcement came out, you have had a chance to talk to survivors groups. What do they say?

JOHN ALLEN: I think the reaction is mixed, Hari.

On the one hand, I think there are many survivors who would say that to them this comes off as church officials judging other church officials, and they, frankly have, relatively little confidence in the integrity of those procedures.

Others think there is something new about the commitment of Pope Francis to get this right. Pope Francis has vowed that, on his watch — and this is his language — he has said there will be no be daddy’s boys, that is, church officials who get special treatment because they’re higher up the food chain. And they want to believe that that’s going to be translated into action.

I spoke recently with a survivor by the name of Peter Saunders in Great Britain, who actually sits on a papal commission advising the pontiff on sex abuse matters, who described this as a very positive step that indicates the pope is listening to survivors.

For the first time, Vatican will judge bishops for sex abuse

Pope Francis approves new tribunal to judge bishops accused of covering up sex abuse

By Michelle Boorstein and Abby Ohlheiser June 10

Ppe approves new office to investigate bishop sexual abuse(1:14)

Pope Francis has approved the creation of a Vatican department to judge bishops accused of covering up or not preventing sexual abuse of minors. (Reuters)

The Vatican on Wednesday announced the creation of a new tribunal for holding accountable bishops who fail to deal properly with clergy sexual abuse.
The changes were aimed at improving what many see as a key deficit in the church’s handling of abuse: accountability for the bishops who oversee abusers. Bishops in the Catholic Church traditionally have significant autonomy and independence from one another. The new system shifts investigations into alleged bishop coverups to the Vatican’s powerful doctrine-enforcing body.
“It’s a major thing because it’s putting bishops on notice. It’s saying: ‘If you don’t deal with this, you have to face the Congregation for the Doctrine of the Faith,’ and no one wants to face the CDF,” said Monsignor Stephen Rossetti, a psychologist and professor at the Catholic University of America who used to head St. Luke’s Institute — a key treatment center for priest-offenders.
Rossetti called the issue of accountability for bishops who oversee or cover up abusers “the cutting edge” for the church. Long ago, he noted, the Vatican established that abusers had committed the “gravest of crimes … but I think it’s true that this issue of accountability [for their bishop-bosses] was not as nailed down. This nails it down very clearly.”
The proposal was submitted to the pope by Boston Cardinal Sean O’Malley and was drafted by a high-level body Francis created to suggest improvements in dealing with abusers and their superiors.
Major improvements have been made — particularly in the United States — in the past decade in creating a system to prevent clergy abuse, and some experts say the U.S. Catholic Church is a model for other institutions on things like background checks and volunteer training. However, bishops who oversaw the many priests removed for abuse are still very rarely held accountable.
It appears that the Vatican has yet to explicitly attribute the removal of a bishop to a coverup of sex abuse. However, two months ago, Kansas City Bishop Robert Finn stepped down – three years after he was convicted criminally in an abuse coverup.

The new system gives the Congregation for the Doctrine of the Faith the authority to “judge bishops with regard to crimes of the abuse of office when connected to the abuse of minors,” Vatican spokesman the Rev. Thomas Rosica said in an e-mailed statement to The Washington Post.
The proposal doesn’t appear to include new penalties for bishops who are found guilty of covering up abuse.
Marie Collins, a member of the Pontifical Commission for the Protection of Minors, tweeted her initial response to the approval on Wednesday.

Some victims groups remain cautious in their response to the new accountability tribunal.
Terence McKiernan, president of a group that compiles worldwide data on clergy abuse, said the new process was a positive development but far from sufficient.
McKiernan, president of BishopAccountability, praised the process for putting bishop accountability cases into the CDF. Accusers “will be treated more respectfully and their cases acted upon if there are people dedicated to this topic, and that’s good. This was an obvious next step,” he said.
However, he called the CDF itself “a black box” that is usually not transparent to the general public regarding its decisions and investigations into priest-abusers, adding that transparency remains a “huge problem in the Catholic Church.”
Others questioned whether internal oversight was an adequate way to address abuse coverups in the church. “As long as clerics are in charge of dealing with other clerics who commit and conceal child sex crimes, little will change,” said Barbara Blaine, president of the Survivors Network of those Abused by Priests, in an emailed statement. SNAP, Blaine said, would prefer to see church officials support reforms in “secular abuse laws so that clerics who hurt kids and hide predators will be criminally charged.

From:  http://www.washingtonpost.com/news/acts-of-faith/wp/2015/06/10/pope-francis-approves-a-new-process-for-governing-bishop-accountability-in-abuse-cases/

Former priest pleads guilty to child pornography charges | PhillyVoice

 

Mark Haynes

June 08, 2015

 

A former Archdiocese of Philadelphia priest pleaded guilty to all charges relating to the distribution of child pornography, the U.S. Attorney's Office announced Monday. 

Mark Haynes of West Chester was arrested in October 2014 by Chester County Police after an Instagram account containing nude photos of a 14-year-old girl was linked to his email address. 

Haynes, 56, posed as a 16-year-old girl named Katie online, requesting sexually explicit photos and videos from underage girls and distributing them on the internet. 

He had last served with the church as parochial vicar at Saints Simon and Jude Parish in West Chester, a position he was removed from by the Archdiocese following his arrest. Ordained in 1985, Haynes previously served at a number of parishes in Chester, Bucks, Delaware and Montgomery counties.

A sentencing hearing is set for September 10, 2015. Haynes faces a minimum 10 years in prison with a maximum sentence of life, along with potential fines and a supervised release.

This case was investigated by the FBI in cooperation with the Chester County Criminal Investigative Division, and it is being prosecuted by Assistant United States Attorney Michelle Rotella.

Former priest pleads guilty to child pornography charges | PhillyVoice

Adelman invites mediation over archdiocesan cemetery trust

 

A federal judge has scheduled a Thursday hearing to gauge interest in trying to settle a contentious lawsuit over the Archdiocese of Milwaukee's now $66 million cemetery trust.

The trust is a key element in the archdiocese's plan to emerge from its 4-year-old bankruptcy in that it would be tapped both to compensate clergy sex abuse victims and fund the church's ongoing cemetery operations.

"There's always interest in settling litigation," said attorney Timothy Nixon, who represents Archbishop Jerome Listecki as the sole trustee of the trust. "However, we are just one part of a much larger picture."

James Stang, who represents the creditors committee, declined to say how it would view an offer of mediation. But he did say that any talks on the cemetery trust would likely be a de facto mediation in the bankruptcy case overall.

"The cemetery trust is the main moving part at this point," Stang said. "I can't imagine the parties going into a room to talk about that and not talk about the entire Chapter 11 case."

U.S. District Judge Lynn Adelman called the hearing to inquire whether the parties have any interest in mediation, according to the court record.

If they are, it would be the third attempt at a mediated settlement since January 2011, when the archdiocese filed for Chapter 11 bankruptcy protection to address its sexual abuse liabilities going back decades.

The cemetery trust lawsuit was remanded to Adelman's court in March by the 7th Circuit U.S. Court of Appeals. The appellate court ruled that the archdiocese could not use the First Amendment and a 1993 law aimed at protecting religious liberty to shield the fund, and that U.S. District Judge Rudolph T. Randa — whose decision it overturned — should have disclosed that he has family members in a cemetery maintained with funds from the trust.

The case could ultimately return to U.S. Bankruptcy Judge Susan V. Kelley's court. But the parties are awaiting a decision in a U.S. Supreme Court case that is expected to clarify that procedure.

Meanwhile, the bankruptcy case is proceeding in Kelley's court. On Friday, the archdiocese filed motions seeking to keep two other pools of money from being tapped for the bankruptcy: $459,388 received as charitable gift annuities and a $2 million account that funds continued religious training for priests, deacons and parish directors.

Single largest asset

The cemetery trust is the single largest asset currently in play in the archdiocese's bankruptcy. And it is a linchpin of the church's revised reorganization plan, which is expected to be filed this summer.

Under the original plan, the archdiocese would set aside under $4 million to compensate 128 sex abuse victims — only those assaulted by diocesan priests. It would create a $500,000 therapy fund and pay the balance of its legal fees, which have totaled $16 million to $20-plus million, depending on who's counting.

More than 400 others who filed sex abuse claims, alleging abuse by religious order priests and nuns, teachers and others the archdiocese does not consider its direct employees, would receive no financial compensation.

The reorganization plan would be financed with a $10.3 million payment by its insurance carriers and a $2 million loan from the cemetery trust. Victims have called that inadequate and insulting.

The archdiocese told Kelley last week that it expects to increase the amount of the money the trust will pay into the plan, but did not specify how much.

The trust would also pay about $2 million annually to the archdiocese to offset the cost of caring for its eight cemeteries.

Trust created in 2007

Then-Milwaukee Archbishop Timothy Dolan created the Catholic Cemetery Perpetual Care Trust in 2007, and in 2008 transferred nearly $57 million into it with the approval of the Vatican and his local finance board. Dolan, now cardinal of New York, had sought Vatican approval, saying the move would provide "an improved protection of these funds from any legal claim or liability."

The archdiocese maintains that the funds were always held "in trust" for the care of the archdiocese's cemeteries, and that this new instrument merely formalized that arrangement.

Listecki sued the creditors committee, seeking a ruling that the trust was not an asset of the archdiocese and was off limits for any sexual abuse settlement.

The committee, which is composed of abuse victims but represents all creditors in the bankruptcy, countersued, calling Dolan's action a fraudulent transfer barred by law.

That ultimately led to the appellate court ruling, considered a big win for the creditors.

Kelley has scheduled a November hearing on the new reorganization plan. But other legal battles loom before it can be approved. Among them, whether Kelley has jurisdiction to grant parishes a blanket protection against future lawsuits — a key provision of the archdiocese's plan — and whether

Adelman invites mediation over archdiocesan cemetery trust

Editorial: Finn's resignation is a bitter but necessary reckoning | National Catholic Reporter

 

NCR Editorial Staff  |  May. 4, 2015

 

The resignation of Robert Finn as bishop of the diocese of Kansas City-St. Joseph, Mo., is a bitter but necessary moment of reckoning for leaders of the Catholic church if they hope to begin to deal seriously with their long betrayal of the community's trust.

Let's be clear that this is only a beginning. Finn was removed for cause, we have been told. Finn was criminally convicted for failing to report Fr. Shawn Ratigan, who ultimately pleaded guilty to possessing and producing child pornography. Ratigan received a 50-year prison sentence.

Finn also violated the Charter for the Protection of Children and Young People, commonly called the Dallas Charter, which the U.S. bishops themselves wrote to guide their response to the violation of children by clergy.

Upholding the Dallas Charter is the one clear signal the bishops can use to ensure deeply skeptical Catholics, not to mention the general public, that they have broken with the despicable practices of the past, when they hid and covered up sexual predators. The Dallas Charter is an imperfect document, but it is the only yardstick the bishops have for measuring their integrity on this issue. That is why Finn became the test case of church resolve to hold bishops accountable.

It may seem unfair that Finn had to take this role. Bishops and cardinals who should have faced criminal prosecution for covering up crimes more extensive and horrible by many degrees than those ignored by Finn have avoided, via legal technicalities, such scrutiny and gone quietly to either retirement or the grave.

"Bishops overseeing the crisis dismissed themselves for decades from any responsibility in the scandal. It was a brazen attempt to sidestep the mountains of evidence revealing that they had long ignored the plight of child victims while engaging in elaborate schemes to hide the heinous behavior of thousands of priests. Any lack of fairness is the result of nothing more or less than the clerical culture that looked first to protect itself and its privileges. Only when forced by legal processes and public pressure did bishops deign to consider the deep wounds inflicted on the most vulnerable in the Catholic family.

Finn's example shows how easily those in authority can ignore even the most basic steps in prevention. The church has made tremendous strides in such areas as requiring background checks, educating both adult ministers and children appropriately regarding proper boundaries, and creating safe environments for children. However, the recently released annual Report on the Implementation of the Charter for the Protection of Children and Young People makes clear that continued diligence is essential -- but is in some places lacking.

"While substantive progress has been made, it should not be concluded that the sexual abuse of minors is a problem of the past that has been adequately addressed," wrote Francesco Cesareo, chairman of the National Review Board. He warns against "Charter drift," referring to instances of laxity in some dioceses of upholding the standards of the bishops' charter. Any bishop who thinks he can relax on this issue should look carefully at Kansas City.

Cesareo also particularly notes that the Lincoln, Neb., diocese and five eparchies stubbornly refuse to cooperate with auditing procedures. Herein lies the final lesson in the Finn case.

Finn has resigned, and we are told it's because of his mishandling of a child abuse case, but we don't know that for certain. We don't know that, because there are no established procedures for removing a bishop who mishandles child abuse cases. If there were such procedures, all the provisions of the Dallas Charter could be enforced, and the Lincoln diocese would either comply or its bishop would be sanctioned.

Now we've been told that under the auspices of Pope Francis' sex abuse commission such procedures are being worked on, and we were told last month that Francis' Council of Cardinals has put the issue of bishops' accountability "on the table," but we've seen no concrete evidence of this yet. Until we see actual procedures in writing and actual cases prosecuted, we'll remain skeptical.

The Council of Cardinals needs to hear from Teresa White, an abuse survivor who was part of a 2008 settlement with the Kansas City-St. Joseph diocese.

She said on April 21, the day of Finn's resignation, that it is important to know the process that led to that resignation. "I want full accountability, I don't want partial accountability," she said. "I don't want any more smoke and mirrors with the church. I want them to own up to their responsibilities to protect children and young people."

For 30 years, we've heard these same sentiments from many other survivors. It is long past time for the church to have in place a clearly delineated process to hold bishops responsible for their actions and inactions in this tragedy.

Editorial: Finn's resignation is a bitter but necessary reckoning | National Catholic Reporter

Gallup Diocese, Abuse Victims to Begin Mediation - Bankruptcy Beat - WSJ

 

A bankruptcy judge has ordered the Roman Catholic Diocese of Gallup, N.M., its insurance carriers and lawyers representing 58 alleged sexual-abuse victims to begin mediation no later than July 15.

Judge David Thuma, who oversees the diocese’s bankruptcy proceedings, signed off on mediation at the request of both alleged victims and the diocese, which stretches across broad swaths of northern Arizona and New Mexico.

Mediation is likely the best opportunity to resolve the diocese’s bankruptcy case through a settlement that provides compensation to alleged victims and protects the church from future litigation, according to lawyers involved in the case. Other diocesan bankruptcies prompted by sexual-abuse claims have stretched out over years, racking up huge legal bills.

In advance of mediation, lawyers representing the diocese, insurers and alleged victims have spent nearly a year and a half seeking out victims, assessing the value of the diocese’s assets and collecting evidence on the allegations of abuse and alleged cover-up by diocesan officials, much of which is said to have taken place decades ago.

Susan Boswell, a lawyer for the Diocese of Gallup, said she hopes to arrive at a court-approved settlement with alleged victims and others well in advance of the second anniversary of the case in November.

“We need to get this case done,” she said at a hearing last week.

James Stang, a lawyer with Pachulski Stang Ziehl & Jones LLP who has represented thousands of victims in nearly a dozen diocesan bankruptcies, told the judge he doesn’t want to receive news of another victim’s death before the case is resolved.

“I know that may seem a little melodramatic,” he said at the hearing.  “But it happens to me on a regular basis.”

But not everyone involved in the case is eager to begin mediation.

Catholic Mutual Group, the Diocese of Gallup’s insurance carrier, said it wanted more time to collect and evaluate information on abuse claims and accused the diocese of failing to hand over files on abusive priests.

In court papers, Catholic Mutual said the diocese has placed “every conceivable roadblock in the path of Catholic Mutual’s request for information.”

David Spector, a lawyer for Catholic Mutual, said that the dispute with the Diocese of Gallup was highly unusual and that Catholic Mutual had never before had an adversarial relationship with a diocese. Catholic Mutual is the primary provider of insurance coverage to many Catholic dioceses in the U.S. and Canada, and its board of trustees consists of 25 Catholic bishops, archbishops and cardinals.

“We don’t want to go to war with the diocese,” Mr. Spector said. “All we want is some basic information to enable us to be able resolve these claims.”

Ms. Boswell disputed Catholic Mutual’s assertions, calling them an “incomplete story.”

“Unfortunately, Catholic Mutual responds to each group of documents it receives, with a request for more information and documents, failing to realize the limited resources of the diocese,” she said.

A Franciscan order of priests, several parishes and a Catholic school will also participate in the upcoming mediation along with the diocese, victims and insurance carriers. Several other Catholic institutions, which could eventually be pulled into the diocese’s bankruptcy case, were not ordered to attend.

Lawyers for alleged victims say they are continuing to investigate other dioceses and religious orders that may have played a role in protecting abusive priests at the Diocese of Gallup.

One such diocese, the Diocese of Corpus Christi, Texas, failed to adequately warn the Diocese of Gallup about an abusive priest who was ordained in Corpus Christi but later moved to Gallup, victims’ lawyers say.

“Any accusation of inappropriate conduct, made against a church worker or employee of the Diocese is always taken seriously and fully investigated regardless of the age of the victim or the amount of time that has passed,” a spokesman for the Diocese of Corpus Christi said in an email.

The Diocese of Gallup, home to 58,000 parishioners, filed for chapter 11 bankruptcy protection on Nov. 12, 2013, as several lawsuits related to sexual-abuse claims were preparing to go to trial.

Judge Randall Newsome, who formerly served as the chief judge of the U.S. Bankruptcy Court for the Northern District of California, will serve as the bankruptcy court-appointed mediator and will work pro bono.

Judge Newsome led a similar round of mediation in 2012 between several hundred abuse alleged victims and the Archdiocese of Milwaukee, which failed to produce a settlement.

In total, 14 Catholic dioceses and religious orders have turned to chapter 11 in the past decade to address waves of litigation related to alleged sexual abuse of children.

Write to Tom Corrigan at tom.corrigan@wsj.com. Follow him on Twitter at @TheTomCorrigan

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Gallup Diocese, Abuse Victims to Begin Mediation - Bankruptcy Beat - WSJ

Judge orders Msgr. Lynn back to prison

 

Joseph A. Slobodzian, Inquirer Staff Writer

Last updated: Friday, May 1, 2015, 1:08 AM
Posted: Thursday, April 30, 2015, 10:11 AM

Msgr. William J. Lynn, the first Catholic Church official convicted in the clergy sex-abuse scandal, returned to prison Thursday after a Philadelphia judge ordered him to resume his sentence for child endangerment.

Lynn, 64, was taken to the Curran-Fromhold Correctional Facility, about four miles across Northeast Philadelphia from the rectory of St. William parish in Crescentville, where he had lived on house arrest since January 2014.

Lynn's lawyer, Thomas A. Bergstrom, said he would challenge Common Pleas Court Judge M. Teresa Sarmina's ruling. Sarmina in July 2012 sentenced Lynn to three to six years for his conviction on charges of endangering the welfare of children.

Lynn is expected to shortly be transferred to the state prison at Waymart, in northeastern Pennsylvania, where he spent almost 18 months until he was released on house arrest when Superior Court reversed his conviction. On Monday, the state Supreme Court reinstated Lynn's guilty verdict, and at a hearing Thursday morning at the Criminal Justice Center, Lynn seemed resigned to what was going to happen.

Lynn turned to Bergstrom with a half-smile and a shrug before he was taken into custody by sheriff's deputies.

Bergstrom argued that Lynn should be permitted to stay at St. William under house arrest while he pursues further appeals. Bergstrom said Lynn had lived up to every provision of house arrest, and a probation officer lauded Lynn's conduct.

Sarmina, however, agreed with Assistant District Attorney Patrick Blessington that now that the state's highest court has ruled, Lynn should be in prison.

"Well, I think things are back where they were when I sentenced Msgr. Lynn," Sarmina said. "The same reasons I stated then exist."

"Somebody call for a sheriff," the judge added before leaving the bench.

Lynn was convicted and sentenced after a landmark 13-week trial in 2012 over his role supervising priests accused of sexually abusing children.

As the Archdiocese of Philadelphia's secretary for clergy from 1992 to 2004, Lynn was responsible for investigating sexual-abuse complaints made against priests and recommending punishment to the archbishop.

The jury found that Lynn allowed Rev. Edward V. Avery, who had a history of sexually abusing children, to live in a Northeast Philadelphia rectory, where he later assaulted a 10-year-old altar boy. Avery pleaded guilty in the 1999 attack and is serving five years in prison.

Lynn argued in his appeal that he could not be convicted for his supervisory role because the state child-endangerment statute was not amended to include supervisors until 2007 - three years after he left as clergy secretary.

Judge orders Msgr. Lynn back to prison

LeMoyne president proud of students for speaking out against commencement speaker, Cardinal Dolan : News : CNYcentral.com

 

SYRACUSE -- A majority of the 2015 graduating class doesn't want him to speak, but the president of Le Moyne College says Cardinal Timothy Dolan will speak at this year's commencement regardless.

Dolan is the leader of the Roman Catholic archdiocese of New York. Some say he has some controversial views, specifically his stance on gay marriage and his handling of allegations of child sexual abuse against priests. However, the Le Moyne administration is thrilled to have him speak, saying he's arguably the most influential leader within the U.S. Catholic Church.

The students aren't nearly as thrilled. More than 300 signed a petition on change.org. There are roughly 600 students in the graduating class. While not every person who signed the petition is a senior, it's fair to say a majority of students who will be attending commencement will not be happy to hear it's star speaker.

Le Moyne president, Linda LeMura says it doesn't bother her. In fact it makes her proud.

"In reality I see it as a great call for celebration. Our students are questioning decisions we've made. They want to understand the rationale at a deeper level. They're indicating concern for members of society that are historically marginalized. I think Cardinal Dolan will take some joy in the fact that our students are well educated and want more questions answered. It's a sign of engagement," says LeMura.

LeMura says Cardinal Dolan has been informed of the petition, but it hasn't deterred him from speaking.

LeMoyne president proud of students for speaking out against commencement speaker, Cardinal Dolan : News : CNYcentral.com

Charges reinstated against Philadelphia priest in landmark sex-abuse case | lehighvalleylive.com

 

The state's highest court on Monday reinstated the landmark child-endangerment conviction of a Roman Catholic monsignor who was the first U.S. church official ever prosecuted over his handling of sex abuse complaints.

The Pennsylvania Supreme Court upheld the 2012 felony conviction of Monsignor William Lynn for endangering an altar boy abused by a priest who had been transferred to his parish despite earlier complaints.

Lynn's lawyers have long argued that Lynn, as secretary for clergy, was not responsible for the welfare of the victim under existing Pennsylvania law. However, the state Supreme Court in a 4-1 ruling disagreed, potentially sending the 64-year-old Lynn back to prison.

"(Lynn) was a person supervising the welfare of many children because, as a high-ranking official in the archdiocese of Philadelphia, he was specifically responsible for protecting children from sexually abusive priests," Justice Max Baer wrote.

Lynn had served half of a three-to-six-year sentence when a Superior Court opinion in late 2013 threw out his conviction and led to his release. He has remained on house arrest, in a northeast Philadelphia rectory, while prosecutors appealed.

Defense lawyer Thomas Bergstrom said Lynn may appeal the novel legal issues in the case to the U.S. Supreme Court.

"They're equating Lynn with being in charge of all of the children of the archdiocese, whether they were abused or not," Bergstrom said. "It's troubling to me that this broad approach would be approved by the court."

"He, Lynn, never even knew about this abuse until 2009 and never even knew the child existed, let alone that he was being abused by (the Rev. Edward) Avery," Bergstrom said.

Avery pleaded guilty to abusing the boy but later recanted his apparent admission during Lynn's trial. He was— sentenced to 2 1/2 to five years in prison.

Avery was one of several priests reassigned to unsuspecting parishes despite complaints that Lynn reviewed at the archdiocese, where he held the high-ranking post under two cardinals from 1992 to 2004.

"I did not intend any harm to come to (the boy). The fact is, my best was not good enough to stop that harm," Lynn said at his July 2012 sentencing. "I am a parish priest. I should have stayed (one)."

The same boy also accused another priest and a teacher at the same parish of abusing him. Both were convicted.

Philadelphia Common Pleas Judge M. Teresa Sarmina told Lynn that he should have stood up to his bishops. Instead, she said, he enabled "monsters in clerical garb . to destroy the souls of children."

Lynn has 14 days to decide whether to appeal Monday's ruling.

"I don't think it's fair to assume anybody's going to pick him up tonight," Bergstrom said.

The Philadelphia district attorney's office, which prosecuted him, praised the Supreme Court's ruling.

"Today's announcement sends the clear message that if anyone - priest, layperson, citizen, police officer or elected official - knowingly puts children at risk of being sexually molested, they will be held accountable," District Attorney Seth Williams

Charges reinstated against Philadelphia priest in landmark sex-abuse case | lehighvalleylive.com

First Two Phila. Clergy Abuse Lawsuits Settle | The Legal Intelligencer

 

Two plaintiffs in civil cases alleging they had been abused by priests from the Archdiocese of Philadelphia have settled their lawsuits against the church for an undisclosed amount, according to their attorney.

The settlements concluded the cases of John Doe 10 and John Doe 187, who claimed they were the victims of sexual abuse perpetrated by archdiocese clerics. Malvern-based attorney Daniel Monahan represents the plaintiffs and said the terms of the settlement remain confidential at the wishes of his clients.

According to the complaints, Doe 187, a former altar boy at the Incarnation of Our Lord Parish, alleged that Father William Ayres abused him in different areas of the church, while Doe 10 claimed he was sexually abused in the bathroom of the St. Aloysius Academy in Bryn Mawr as a student by former priest Martin Satchell. Both incidents were alleged to have occurred in the 1990s, while the plaintiffs were minors.

The plaintiffs alleged that the archdiocese knew about patterns of abuse committed by priests, but did nothing to safeguard those children who were at risk. According to Monahan, the settlement itself is between the plaintiffs and the archdiocese, as all other defendants, including Ayres and Satchell, had been dismissed.

Conrad O’Brien attorney Nicholas M. Centrella represents the archdiocese and did not return a call seeking comment. The archdiocese’s communications office did not immediately respond to a request seeking comment.

Monahan said the settlements were significant for the plaintiffs.

“One of the important things for these clients is a sense of empowerment, taking back some of the power they lost when they were children,” Monahan said.

According to Monahan, roughly 15 clergy abuse cases handled by his firm have been dismissed on statute of limitations issues, while an additional two are on appeal before the state Superior Court for similar issues. Doe 10 and Doe 187 are the first two to reach settlement.

First Two Phila. Clergy Abuse Lawsuits Settle | The Legal Intelligencer

The paradoxes of Bishop Finn | USCatholic.org

 

Rejoicing over the recent resignation of Bishop Robert Finn as the bishop of Kansas City-St. Joseph is unseemly. I take no joy in another person’s distress, and I wonder what the church will do with a bishop who is only 62 years old and has 13 years of active episcopal ministry left. What does the church do with a bishop without a diocese? 

Bernard Law, when he first stepped down from the See of Boston, was supposed to live a quiet life of prayer as chaplain for the Alma Mercy Sisters, but we all know how that worked out. A similar call to Finn for a cushy Roman job is out of the question. There is a different pope now.

This is but one of the paradoxes in Finn’s case. Another is: Why did he choose to ignore the Dallas Charter, the compact that he had with his fellow bishops, not to allow sexually abusive priests to remain in ministry? That was a promise that the entire body of American bishops made to the faithful in the United States. How could Finn think that he knew better than his fellow bishops? Did he ever consider the effects of his breach on the rest of the American church, namely the persistence of the doubt that if one bishop was breaking the Charter, others probably were as well, but were just better at not getting caught?

And another paradox: Why did his fellow bishops not call him out publicly for his dishonor? After all, it was their joint promise that he broke. Where was the fraternal correction from the American bishops?In Germany, when the Bishop of Bling, Franz-Peter Tebartz-van Elst of the diocese of Limburg, spent $43 million dollars to renovate his palace, the outcry from the German bishops was public and immediate. Within four months, Tebartz-van Elst was gone.

In contrast, there was no public outcry by the American bishops when Finn was found to have harbored a sexually abusive priest. If there had been, the period between when Finn pleaded guilty to child endangerment and when he actually stepped down would certainly have been shorter than two years and seven months. It is no accident that, within a few months of Cardinal Sean O’Malley saying that Finn’s case had to be “urgently” addressed in his 60 Minutes interview, Finn was gone. And it is unfortunate that no other American bishop spoke up publicly sooner, or Finn might have been gone sooner. Why do our bishops lack the moral fortitude of the German bishops when it comes to criticizing one of their own?

And speaking of our bishops and their collective treatment of Bishop Finn, this recalls yet another paradox. In the news over Finn’s resignation after his conviction for failing to report suspected child abuse in Jackson County, Missouri, it has been forgotten that, in order to avoid prosecution on similar charges in Clay County, Missouri, Finn handed significant power over his diocese to the public prosecutor there. Pursuant to that agreement, Finn had to meet with the Clay County prosecutor once a month for five years to personally report to any charges of child sexual abuse involving diocesan clergy or staff. He also had to report what the diocese was doing to deal with these charges. In addition, Finn, together with the diocesan ombudsman and director of child protection, had to make presentations on child abuse to each of the nine parishes in Clay County.

At the same time Finn was avoiding prosecution in Clay County through this agreement, giving the public prosecutor unprecedented power over an American diocese, the rest of our bishops were gearing up their campaign to defend religious liberty, which they said was under attack in our country. Every diocese was to hold a “Fortnight for Freedom” prior to July 4, for Catholics “to study, pray and take public action to fight what they see as the government’s attempts to curtail religious freedom.”

Does anyone see an obvious contradiction here? Not one bishop mentioned, in their discussion of the assaults on religious freedom, the fact that one of their own had committed one of the greatest assaults on religious freedom in order to avoid his own criminal prosecution.

Right now, in Finn’s case, there are still more questions than answers. One thing is certain, however: We can never allow this situation to repeat itself. The safety of our children in the hands of our church can never again be placed in doubt. And no diocesan bishop who ignores this should remain in office for an extra minute.

Nicholas Cafardi, dean emeritus and professor of law at Duquesne University, is a former chair of the U.S. Conference of Catholic Bishops' National Review Board for the Protection of Children and Young People.

The paradoxes of Bishop Finn | USCatholic.org

Looking Past Cardinal Dolan's Hearty Smile | Michael D'Antonio

 

In Rome, Vatican watchers like to say that the institutional Catholic Church measures time not with a clock, but with a calendar, and that its memory is as durable as the records in its archives, where Galileo's signature, preserved in the documents from his famous trial, looks like it was penned yesterday. In America the one institution that might match the Vatican when it comes to memory and deliberative care is our system of justice where, according to the reliable cliché, the wheels grind slowly. But grind they do and they are gradually revealing the character behind the façade of New York Cardinal Timothy Dolan's hearty smile and twinkling eyes.
In the most recent turn in the struggle for justice by victims of clergy sexual abuse, a federal judge found that the Archdiocese of Milwaukee cannot stash $55 million in a trust devoted to cemeteries and deny litigants access to the money as they sue for compensation. Victims of predator priests have used the courts to seek both the documented truth and financial compensation for more than a decade.

The architect of the trust fund idea was then Archbishop of Milwaukee Dolan, who was subsequently made cardinal of New York by Pope Benedict XVI.

Before he shocked the Church by resigning, Benedict stood as the symbol of the Vatican's immoral and schizophrenic response to abuse as he spoke empathetically but acted to shield both clergy and the Catholic treasury. Dolan practiced the same duality, posing as a Christ-like figure of compassion in meetings with victims but acting as if he never heard the admonition to the greedy contained in the gospel of Luke. Indeed, after establishing the trust he then sought the protection of the bankruptcy court for the rest of the assets of the archdiocese. This strategy was replicated elsewhere in the country as bishops, who understood that victims had won billions of dollars in compensation, recognized in Dolan's example a way to evade claims.

Created just as the state of Wisconsin was moving to permit victim lawsuits against the official church, Dolan's enormous trust fund was described by the archdiocese as a vehicle for the care of eight burying grounds. For the care of clergy victims Milwaukee church officials proposed $4 million, less than 10 percent of the sum earmarked for the dead, to be split by 128 claimants. An additional 450 people who came forward to accuse priests of sexual abuse would have been given nothing because they failed to meet certain legal, not moral, criteria.

Although it was explained in straight-faced seriousness, the notion that this much money would be required for a cemetery trust is hard to square with the experience of leaders at local churches who manage to cut the grass and plow pathways at their cemeteries with the aid of volunteers and revenues from the sale of plots. Court documents show that indeed, the cemeteries of the archdiocese actually operated at a profit of roughly $500,000 per year and the trust gave almost four times as much -- $1.95 million annually -- to headquarters in downtown Milwaukee.

So far, the archdiocese has spent more than $11 million in legal fees to wage its battle with victims in bankruptcy court. The cemetery excesses, since the trust was established, have totaled almost $8 million. Add these moneys to the $55 million secreted away by Dolan and you get an amount -- $74 million -- that would approach a reasonable settlement figure. These facts, revealed by the grinding wheel of American justice, represent the truth behind the hail-fellow-well-met image Dolan has cultivated. Although he has seemed a bit out of step since his sponsor, Benedict, was replaced by the more humble Francis I, Dolan has insisted that he has made no effort to change his style or practice. In view of how this vicar of Christ chose to represent Jesus when he managed the money in Milwaukee, that's too bad for New Yorkers.

Looking Past Cardinal Dolan's Hearty Smile | Michael D'Antonio

Helena diocese reaches sex abuse settlement via 'consensus model' | National Catholic Reporter

 

In what U.S. Bankruptcy Court Judge Terry L. Myers called a "singular achievement," a bankruptcy and reorganization plan for the Helena, Mont., diocese reached via mediation and negotiation rather than protracted litigation has been approved.

It will provide $21 million to compensate more than 360 sexual abuse claimants. Distributions averaging about $40,000 per claimant are scheduled to begin in April, attorneys for the diocese said.

During the three and a half years since the original lawsuit was filed, fewer than three hours were actually spent in court, according to lawyers involved in the case.

Approved by Myers on March 4 at proceedings in Coeur d'Alene, Idaho, the settlement officially went into effect Thursday following a mandatory two-week waiting period for potential appeals.

The plan, which also includes the restructuring of about $17 million in internal diocesan debt, received "nearly unanimous approval in voting by the sexual abuse victims and other creditors, and the confirmation order by Judge Myers resolves all outstanding sexual abuse claims against the Diocese of Helena," according to a diocesan press release.

The plan confirmation also "resolves claims against the Western Province of Ursuline, who joined in the reorganization process and made a substantial contribution to the overall settlement," the release stated.

A set-aside of $920,000 for potential future claims was part of the agreement.

The settlement includes non-monitory requirements aimed at preventing future abuse of children, such as intensive background checks and screening of potential seminarians, and the release of names of all known current and past abusers listed in abuse claims or the lawsuits.

The proceeding has been watched closely across the country by trial lawyers, bankruptcy courts, victims' groups, dioceses and archdioceses, and the U.S. bishops' conference, according to attorneys interviewed by NCR.

Mike Patterson, lead attorney for the Helena diocese, described the negotiations that led to the settlement as "a conciliatory process" marked by the diocese openly sharing its financial picture and personnel files, by "compassionate and respectful" treatment of sex abuse plaintiffs, and by open sharing of information between all parties.

"It is not just us who are talking about" how fairly and efficiently the settlement was achieved, Patterson said, "but we have been contacted by many dioceses and bishops reaching out for guidance on how to handle this type of litigation" as well as by the general counsel of the bishops' conference.

Attorney Ford Elsaesser, who handled details of the bankruptcy for the diocese, said Patterson and Helena Bishop George Thomas insisted on "putting the litigation on a mediation tract with full disclosure from the beginning."

"I have been doing Chapter 11s for almost 33 years," Elsaesser said, "and this has been remarkable. I have never felt better about how a Chapter 11 went from start to finish than this one."

Patterson agreed. "This has certainly been the smoothest sexual abuse litigation that I have been involved with, and that includes [cases involving] the Mormons, Boy Scouts, school districts, other churches and public entities."

"All sides," Patterson added, "recognized that the scorched-earth posture does not work. It does not benefit the victims or the diocese and it leads to a tremendous amount of animosity and mistrust, and it emasculates the transparency that should prevail."

Elsaesser, who teaches bankruptcy law at the University of Idaho and at St. John's University, said he plans "to incorporate a lot of what we learned in the Helena process" into courses.

Most of the diocese's portion of the settlement, about $14.4 million, will be paid by insurance. The diocese will be responsible for about $2.6 million, part of it to be generated from the sale of its youth camp and retreat center to an independent foundation with close links to the diocese, a diocesan official said. Thus, the facility will be able to continue to operate.

The Ursuline province will contribute about $4.5 million.

Elsaesser said it is critical for a party seeking Chapter 11 protection to be able to "show it can not only pay claimants what has been agreed, but to also prove it can survive and keep going forward."

The Helena diocese is "coming out of the process in a reasonably strong financial condition," Elsaesser told the Wall Street Journal.

The diocese enlisted the help of an "insurance archeologist" to research what insurance carriers and coverages might have been in place when the bulk of the abuse events took place, 30 to 60 years ago, Elsaesser said. Ultimately, seven insurers were involved in the settlement.

Elsaesser and Patterson as well as most plaintiff attorneys lauded Thomas' leadership and pastoral approach.

In testimony at the March 4 hearing, Thomas expressed "profound sorrow for what victim survivors have experienced over the past decades" and praised the "tremendous amount of courage" they displayed "to come forward."

He said he wanted "to be on record as saying that the victim survivors in our diocese of Helena are believed and deeply respected."

In meeting with clergy sexual abuse victims, Thomas told NCR, "the pain they experienced is not yesterday, but in the present tense. The church needs to acknowledge that."

Thomas said that "early on, when I was first made aware of the cases coming at us, my first instinct was pugnacity, that we would fight this thing through, circle the wagons. But as I talked with priests and attorneys and victims and prayed for wisdom and guidance, it became clear pugnacity was not the key."

The bishop testified that he "really rejected the idea of prolonged, acrimonious litigation. I believe that the strong suit of the church should be healing and conciliation and not long-term litigation. So I really hope that the pastoral care approach we have taken will be effective."

In court, Thomas complimented Milton Datsopoulos and Molly Howard, the attorneys for the bulk of the plaintiffs, for being "pivotal in creating what I would describe as a consensus model. This has been a cooperative venture from the beginning, and for me it has led to this day where there's the possibility of a healing and mediated process that comes both to a conclusion today and affects the healing process for the future."

Thomas said in court and in an interview that "complacency is a danger" and that the church "must re-double prevention education" and other efforts to combat future sex abuse.

Elsaesser described the legal path taken as "the exact polar opposite of what is going on in Milwaukee."

The Milwaukee archdiocese's contentious sex abuse litigation was also mentioned during the March 4 hearing.

James Stang, who represented the committee of uninsured creditors, said: "It's no secret that the archdiocese in Milwaukee, where we [also] represent the creditors committee, is going into its fourth year with very large administrative expenses and no resolution in sight."

Stang described church cases in which he had been involved in which church officials sought to "hinder, delay and defraud" abuse victims and creditors.

Stang also spoke highly of the Helena and Ursuline claimant attorneys. While the media and some church officials "talk about 'greedy trial lawyers,' " he said, "If it weren't for those lawyers, all of whom work on a contingency, the crimes that have been hidden in the dark for decades would have stayed in the dark."

In remarks at the end of the Coeur d'Alene session, Judge Myers said, "Mr. Stang was absolutely correct in noting that this case is unlike many of the cases throughout the country on church Chapter 11 bankruptcies."

He portrayed the overall process as "an enlightened as well as diligent, talented effort to reach an optimum solution for all concerned."

[Dan Morris Young is NCR West Coast correspondent. His email address is dmyoung@ncronline.org.]

Helena diocese reaches sex abuse settlement via 'consensus model' | National Catholic Reporter

Archdiocese bankruptcy will include search for assets | Minnesota Public Radio News

 

The Archdiocese of St. Paul and Minneapolis chancery building sits near the foot of the Cathedral of St. Paul, overlooking downtown St. Paul. Jeffrey Thompson | MPR News

The bankruptcy of the Archdiocese of St. Paul and Minneapolis takes another step forward Tuesday afternoon with the first meeting of the creditors committee.

Citing clergy-abuse lawsuits and the costs of future claims, the archdiocese filed for bankruptcy in January. Its Chapter 11 filing requires alleged victims to file claims in federal court as creditors.

• Archbishop: Bankruptcy best path for clergy sex abuse claims

Explore the full investigation Clergy abuse, cover-up and crisis in the Twin Cities Catholic church

So far, five people — all alleged victims of clergy sex abuse — have been named to the committee. Payouts to them and other creditors will depend greatly on what assets the archdiocese has available for compensation — a factor that likely will set in motion a detailed search for church assets.

The archdiocese and attorneys for abuse victims hope that insurance will cover a large portion of abuse claims that will be settled through the bankruptcy process, with church insurers potentially providing $100 million or more.

• Related: What mediation means for the archdiocese, insurers and victims

Insurers are contesting coverage claims by the archdiocese, with some companies claiming they owe the archdiocese nothing for claims related to abusers whom the church identified but failed to stop.

But in bankruptcies prompted by sex abuse claims, a diocese typically contributes something to a settlement with victims.

A big question is what the Twin Cities archdiocese could offer the 150 or so people with abuse claims.

"The answer is: 'It depends,' " said Christopher Soper, a University of Minnesota law professor and attorney who has been involved in several Catholic Church bankruptcies. He expects close scrutiny of archdiocese accounting and the church's relations with other Catholic organizations.

"It's a pretty common way for creditors of the debtor to try to gin up more assets to spread around," Soper said. "I'm sure all the interested parties will be looking very carefully at the archdiocese finances to see if the various entities are really as separate as they claim."

Toward that end, forensic accountants will dig into the finances of the archdiocese, hunting for anything of significant value that may not have been already disclosed. They'll also peruse pension plans, parishes, schools, cemeteries, charities and other Catholic entities, looking for any money and assets that could be deemed to be property of the archdiocese.

Archbishop John Nienstedt Jeffrey Thompson / MPR News

Archbishop John Nienstedt and other diocese leaders serve on many of the boards of those organizations. The archdiocese insists parishes, schools, cemeteries, charities and other Catholic entities are legally separate and their assets — which could be worth several hundred million to more than $1 billion -- should be beyond the reach of creditors.

But Jennifer Haselberger, a former archdiocese canon lawyer and whistleblower on abuse, argues that many of those assets may still be at risk.

In a recent blog post, she wrote that creditors could make the case that the archdiocese exerts enough control over parishes and other Catholic entities that legal separation effectively does not exist.

While many parishes are in debt or have few or no assets of value to creditors, Haselberger said a fair number of them hold a significant amount of property.

Jennifer Haselberger Jennifer Simonson | MPR News 2013

"St. Katherine Drexel, for instance, has more than thirty undeveloped acres in Ramsey, and Sts. Joachim and Anne about ten acres in Shakopee," she wrote in her blog post. "Other parish corporations hold undeveloped land, commercial real estate, rental housing, etc."

In its bankruptcy filing, the archdiocese reported net assets of only about $30 million. But that includes about $14 million in trust accounts that fund medical and dental health plans.

Larry Ricke, the attorney for the trustees of the archdiocese's medical and dental plans, said that more than 90 percent of the money in the plans comes from Catholic parishes, schools and other organizations and some 3,350 of their employees.

"The funds ... were contributed by participating employers, primarily the parishes and schools, and their individual employees and are to be used solely for the purpose of paying the medical and dental claims of the employees," Ricke wrote in an email.

The archdiocese has about $2 million in funds that it contends have donor restrictions on how the money can be used.

The bankruptcy also likely will cost the archdiocese millions of dollars in legal and other professional fees. That's money that won't go to abuse victims. In just the 90 days before its bankruptcy filing, the archdiocese paid legal and consulting firms about $2 million.

Indeed, the financial state of the archdiocese appears dire when the potential cost of compensating abuse victims is factored in. Archdiocese auditors late last year warned that there was substantial doubt about the chancery's ability to continue as a going concern.

Jack Ruhl, an accounting professor at Western Michigan University who has worked with victims' attorney Jeff Anderson, believes the archdiocese has more assets than it admits.

"I would not conclude that there's not much there," he said. "There's a lot of different pots of money. There are entities like the cemeteries, the pension fund."

There is also property. The archdiocese has reported real estate holdings that it values at least $11 million. The two most attractive properties are the Hayden Center on West Kellogg Boulevard and the chancery on Summit Avenue.

A development on the chancery property could include scores of high-end apartments or a few luxury homes with spectacular views of the river valley. But developer James Stolpestad, chairman of Exeter Group, which has developed many projects in St. Paul, said such projects could be too impractical to provide much value in bankruptcy.

"The biggest issue would be the historic approvals, local, state and federal, because it's a national historic district long Summit," he said.

The Archdiocese of St. Paul and Minneapolis chancery building sits near the foot of the Cathedral of St. Paul, overlooking downtown St. Paul. Jeffrey Thompson | MPR News

Archdiocese real estate holdings also include the Cathedral of St. Paul and land under three Catholic high schools. But church officials doubt those properties have much value.

The cathedral has an estimated market value for tax purposes of about $21 million. But there is a $4.5 million loan on the cathedral and archdiocese officials say the property has very high maintenance costs, substantial deferred maintenance, limited potential and no "realizable value."

It's not unheard of, however, for grand churches or temples to be sold, typically to followers of another faith.

"Churches can be sold like any other property," said Catharine Wells, a Boston College law professor who has followed church bankruptcies across the country. "There certainly isn't in most states any special exemption for church property."

In 2012, The Catholic Diocese of Orange, California bought the Crystal Cathedral that was built for televangelist Robert Schuller, paying nearly $60 million for the church and its 34-acre campus.

The Twin Cities archdiocese estimates the land under the Totino Grace, Benilde-St. Margaret's and DeLaSalle high schools has a combined estimated market value of $13.7 million. But it reported that the value of its interest in the properties is "unknown."

That reflects uncertainty about what value the land could have given its current use and zoning and other restrictions on the properties.

Each school pays $1 a year to lease land from the archdiocese. DeLaSalle President Barry Lieske said he doesn't expect the bankruptcy to affect his school financially.

DeLaSalle High School in Minneapolis. Jennifer Simonson | MPR News

"DeLaSalle is confident that the archdiocese bankruptcy will have no impact on what we do," he said. "We're a separately incorporated nonprofit."

There are more than 200 undeveloped acres of land in Catholic cemeteries in New Hope and Mendota Heights.

According to the archdiocese, the cemeteries are part of a separate legal entity, established in 1969.

Public records indicate the archbishop and two other high ranking archdiocese officials have seats on the cemeteries' boards and they appoint other board members.

John Hedback, the attorney for the cemeteries, said their officials don't see how those properties could be tapped to pay archdiocese creditors.

"We don't believe there's been any action since they were spun off which would give result in it being a source of funds," he said.

But Charles Zech, director of the Center for Church Management and Business Ethics at Villanova University, expects the relationship will be closely examined.

Resurrection Cemetery in Mendota Heights is the largest cemetery in the Archdiocese of St. Paul and Minneapolis. Less than half of the total 350 acres have been developed for current cemetery use. Jeffrey Thompson | MPR News

"That'd be up to the court to decide how separate they are," he said. "But potentially the undeveloped cemetery land could be part of the settlement."

The assets of the cemeteries is unknown, as they do not have to file public financial reports. In the Archdiocese of Milwaukee's bankruptcy, creditors have been trying to access a $60 million cemetery trust fund.

There is a lot of money — probably more than $100 million — in the priest and lay employee pension plans overseen by the archdiocese. The plans cover 401 priests and 5,079 current and former employees of the archdiocese, parishes, schools and other Catholic organizations.

But archdiocese officials say the pensions are not archdiocese property and "our understanding is that the plan assets should not be available to the creditors."

The archdiocese also contends that the plans currently do not have enough money to pay future obligations. As of the end of 2010, internal church documents indicate the plans had about $114 million in assets and were on the hook to pay projected benefits of $183 million.

The current state of the pensions is unclear because they are not subject to the public reporting requirements that most pensions are. But the archdiocese plans to issue a pension funding report next month.

Given the stock market's rise in recent years, the gap between pension assets and obligations likely narrowed. But Zech expects the pensions' funding could be diminished by the bankruptcy. Zech said archdiocese assets that could fund the pensions could be diverted toward a settlement with abuse victims. He said that happened in the Wilmington, Del., church bankruptcy.

"They're certainly in for some financial hit," he said.

As church plans, the pension plans are not subject to federal reporting requirements, nor are they backed by the Pension Benefit Guaranty Corporation.

Overall, Zech said, the archdiocese appears to have done a good job to limit the damage that can be done by big legal settlements. It has largely accomplished that by ensuring that related Catholic entities are set up as separate legal entries, which could put them beyond the reach of archdiocese creditors.

Villanova professor Charles Zech Courtesy of Charles Zech

But that doesn't mean the archdiocese could not raise money from those organizations, deep-pocketed individual donors and the rest of the Twin Cities Catholic community.

Zech said the archdiocese could ask the Catholic community to contribute toward a settlement. He said that the archbishop could even order parishes to contribute, since he controls most of the seats on individual parish boards.

"The archbishop says, 'Your parish will contribute.' They will contribute," Zech said.

But parishioners might rebel against such an edict — Zech doubts Archbishop John Nienstedt would try to tap other Catholic organizations, unless there is court pressure to do so.

"I can't see the archdiocese not fighting this tooth-and-nail and not trying to pay as little as possible to the victims," Zech said.

Archdiocese bankruptcy will include search for assets | Minnesota Public Radio News

The Tablet - News

 

March 2015 11:48 by Abigail Frymann Rouch

Archbishop Philip Wilson of Adelaide has been charged with covering up child abuse committed by a priest in the 1970s.

Archbishop Wilson, vice president of the Australian Catholic Bishops’ Conference, is the most senior cleric to be charged with an offence relating to the handling of an allegation of clerical sex abuse. He is due to appear in Newcastle local court on 30 April and if convicted, faces up to two years in jail.

The archbishop, 64, issued a statement today denying the allegation of concealing a serious offence regarding child sexual abuse, and said he was “disappointed” that police from New South Wales had decided to press charges.

The alleged abuse took place in New South Wales in the Hunter Region, in the diocese of Maitland-Newcastle, where Archbishop Wilson was a priest.

“The suggestion appears to be that I failed to bring to the attention of police a conversation I am alleged to have had in 1976, when I was a junior priest, that a now deceased priest had abused a child,” he said.

He said he would take leave “to consult with a wide range of people in response to the information I have received today”.

The president of the Australian bishops’ conference, Archbishop Denis Hart, issued a statement, pointing out that Archbishop Wilson “strongly maintains his innocence” and urging people from making any judgement until the charge has been dealt with by the court.

It is alleged that Wilson covered up knowledge of abuse by Fr Jim Fletcher in the 1970s, the Australian reported. Fr Fletcher was administrator at Maitland cathedral, where he met then Fr-Wilson.

In 2004 Fr Fletcher was jailed over the rape of a young boy between 1989 and 1991. He died of a stroke in 2006 while serving his sentence.

The NSW Special Commission of Inquiry into the handling of abuse allegations in the Hunter Region, which was launched in 2012, has identified at least five known victims of Fletcher, “each of whom was as a child sexually abused by him over a number of months, and often years”.

It said Fr Fletcher had an “extensive history” of abusing children, in particular altar boys, dating back to the 1970s.

In 2011 the American bishop Robert Finn of Kansas City-St. Joseph became the first Catholic bishop to be convicted for the handling of alleged abuse by a priest. Bishop Finn was sentenced to two years of probation for failure to report suspected child abuse

The Tablet - News

WisBar News: Milwaukee Archdiocese Loses Federal Appeal on $55 Million Transfer:

 

the U.S. Court of Appeals for the Seventh Circuit has ruled that protections on religious freedom won’t protect a $55 million transfer that diminished the Archdiocese's bankruptcy estate.

In 2008, the Archdiocese of Milwaukee transferred $55 million to a trust fund designated to maintain cemeteries it owned in Milwaukee, after seeking approval from the Vatican.

According to court records, a letter to the Vatican indicated that the transfer would protect funds from legal claims and future liability. The Vatican approved the transfer.

In 2011, amidst civil fraud lawsuits that stemmed from sexual abuse by priests, the Archdiocese filed for bankruptcy protection. 

Sexual abuse victims sought to void the $55 million transfer as fraudulent, in violation of the Bankruptcy Code, in order to make those funds reachable by them as unsecured creditors with claims against the Archdiocese’s bankruptcy estate.

The Archdiocese argued that the $55 million was protected as necessary to maintain cemeteries under Canon Law obligations. Specifically, the Archdiocese argued that the Religious Freedom and Restoration Act (RFRA) barred application of the Bankruptcy Code provisions, because the transfer was made for religiously protected purposes.

RFRA prohibits the “government” from placing substantial burdens on a person’s exercise of religion, without a compelling interest achieved by the least restrictive means, even if the government’s law or regulation is generally applicable to everyone. The government includes government officials or persons acting “under color of law.”

The Archdiocese argued that RFRA applies because the U.S. Trustee, which oversees the administration of bankruptcy cases, appointed a Creditors’ Committee – consisting of sex abuse victims – to represent the Archdiocese’s unsecured creditors in the case.

Thus, the Archdiocese argued, the Committee was acting “under color of law.” The Archdiocese also argued that the transfer is protected by the First Amendment.

The appointed Committee of victims argued that RFRA did not apply because the Committee is not a government actor. It also contested the Archdiocese’s First Amendment defense, and argued the district court judge should have recused himself because he has family members buried at cemeteries owned by the Archdiocese.

District Judge Rudolph Randa ruled that RFRA and the Free Exercise Clause barred application of the Bankruptcy Code provisions against the $55 million.

In Listecki v. Official Committee of Unsecured Creditors (March 9, 2015), a three-judge panel for the Seventh Circuit Court of Appeals rejected the Archdiocese’s RFRA and First Amendment defenses to the transfer, but did not rule on the recusal issue.

First, the panel said RFRA did not apply because the Committee is not a government actor, and RFRA only protects government actions that substantially burden religion.

“Although each determination of an entity’s governmental actor status is fact- and case-specific, our conclusion that the Committee is not a governmental actor is supported by the Supreme Court’s precedent,” wrote Judge Ann Claire Williams. “There might be a ‘nexus,’ between the Committee and the government, but it is not a close one.”

The panel also ruled that the First Amendment’s free Exercise of Religion Clause does not bar application of the Bankruptcy Code provisions to the $55 million transfer, even though the First Amendment can apply in private civil suits.

“The Code and its relevant provisions are generally and neutrally applicable and represent a compelling governmental interest in protecting creditors that is narrowly tailored to achieve that end,” Judge Williams wrote for the panel.

The Bankruptcy Code may be used to void certain transactions, including fraudulent and “preferential” transfers that would allow the debtor to avoid inclusion of certain funds into the bankruptcy estate, which is subject to creditors. The Archdiocese said certain Code provisions are not neutral because they target religious organizations.

But the panel explained that such provisions do not prohibit the practice of religion and do not single out religious practice. “Anyone, regardless of religion or beliefs, can donate money to a qualified religious or secular charitable organization under the Code and qualify for avoidance – no religion or religious practice is required,” Williams wrote.

Even assuming the Bankruptcy Code’s provisions substantially burdened the Archbishop’s religious belief by disallowing a monetary transfer that supports cemetery maintenance, the panel said the government had a compelling reason.

“The Committee’s asserted compelling governmental interest is the protection of creditors. We agree that this is a compelling governmental interest that can overcome a burden on the free exercise of religion,” wrote Judge Williams, noting that the Bankruptcy provisions are narrowly tailored to protect the creditors’ interests.

The panel did not rule whether the $55 million transfer actually violated the Bankruptcy Code provisions, only that RFRA and the First Amendment do not prevent the code’s application: “[I]f the case reaches that stage, the adjudicator can consider the issue of whether the transfer of the Funds ran afoul of any of the Challenged Provisions.”

See more at:  SWisBar News: Milwaukee Archdiocese Loses Federal Appeal on $55 Million Transfer: