Jan 31 A Montana Roman Catholic diocese filed
for bankruptcy on Friday as part of a proposed $17.5 million
settlement with hundreds of adults alleging childhood sexual
abuse by its priests, nuns and lay workers, a church spokesman
The Helena diocese, serving an estimated 44,500 Catholics in
57 parishes and 38 missions in western Montana, is the eleventh
U.S. diocese to file for Chapter 11 bankruptcy reorganization
since 2004 because of liabilities linked to child abuse cases.
Under the proposed agreement, the church would pay $15
million to settle claims brought by 362 victims in two lawsuits
filed in 2011. It also would set aside an additional $2.5
million for future claims and to cover legal costs, said Helena
diocese spokesman Dan Bartleson.
"We don't really have any reserves," Bartleson said, adding
that bankruptcy protection would help facilitate the payouts to
abuse survivors. The agreement must still be approved by a
federal bankruptcy court and by victims.
Attorneys representing the majority of claimants said the
move brought the church closer to accepting responsibility for
abuse that spanned three decades beginning in the 1940s and
affected both young children and young adults.
"It's an important step in the process of accountability by
the church and one part in the long process of healing for the
sex abuse survivors who have come forward," said Dan Fasy, an
attorney with one of four firms representing plaintiffs.
Child sex abuse litigation has cost the U.S. Catholic Church
some $3 billion in settlements in the two decades since the
ongoing scandal erupted with a series of child molestation cases
uncovered in Boston in 1992.
Unlike dioceses elsewhere, the Helena diocese opted to
ensure compensation for victims even as it sought bankruptcy
protection, Bartleson said.
The $15 million to be paid to victims will be underwritten
by diocesan insurance carriers while the church will provide at
least $2.5 million for future claims and litigation. That will
further deplete the coffers of a diocese whose financial strains
recently caused it to lay off roughly 3 percent of its workforce
of 200, Bartleson said.
Fasy said the sexual abuse suffered by his clients at the
hands of priests, sisters and lay people associated with the
diocese took place on church property, at parochial schools,
during church-sponsored outings and at homes of victims by
Helena Bishop George Leo Thomas said none of those
"credibly" accused were now active in the ministry and most were
"I express my profound sorrow and sincere apologies to
anyone who was abused by a priest, a sister, or a lay church
worker," he said in a statement.
The settlement does not include the Ursuline Sisters, also
defendants in the case against the Helena diocese, Bartleson
said. Claims against the sisters are tied to Native Americans
who allege they were abused decades ago as students in Montana
schools overseen by the order.
(Editing by Cynthia Johnston and Tom Brown)