Spokane Diocese Files For Chapter 11 Protection

SPOKANE - Overwhelmed by sexual abuse lawsuits involving priests, the Roman Catholic Diocese of Spokane on Monday became the third in the nation to file for bankruptcy protection.

The diocese does not have the money to cover claims that already total some $77 million, so Chapter 11 bankruptcy is the best way to ensure that all victims are treated fairly and that the church continues its mission, Bishop William Skylstad said.

"Demands by plaintiffs continue to be beyond the ability of the diocese to meet," Skylstad, who was just elected president of the U.S. Conference of Catholic Bishops, told a news conference.

In its filing, the diocese listed assets of $11.1 million and liabilities of $81.3 million, nearly all of them sexual abuse claims.

The filing means federal bankruptcy court will determine what assets can be used to pay claims and how much each victim will get. Catholic dioceses in Portland, Ore., and Tucson, Ariz., also recently filed for bankruptcy protection in the wake of a nationwide scandal involving sexual abuse by clergymen.

Critics denounced the Spokane filing, saying Skylstad was trying to avoid a trial that would expose the lengths to which the church has gone in the past to protect serial pedophiles.

"Everyone suffers when Skylstad chooses to protect his secrets and his image rather than show courage and compassion," said David Clohessy, national director for Survivors Network of those Abused by Priests.