Judge Lifts Diocese's Bankruptcy Shield for Abuse Claims

[Fearless]

Spokane Judge Lifts Diocese's Bankruptcy Shield<br><br>Churches and other assets may be liquidated to settle abuse claims. An appeal is expected.<br><br>By Sam Verhovek and Jean Guccione, Times Staff Writers<br><br>SEATTLE — Handing a major legal victory to victims of sexual abuse by Catholic priests, a federal bankruptcy judge said Friday that churches, parochial schools and other assets belonged to a diocese — not individual parishes or trusts — and thus could be liquidated if necessary to pay victims. <br><br>The ruling applied specifically to the bankrupt Diocese of Spokane, Wash., which is facing settlement of lawsuits brought by 58 people who said they were sexually abused by priests. <br><br>The diocese said it would file an immediate appeal. But if the ruling is upheld, it could have broad implications for other dioceses staggering under the weight of sexual-abuse lawsuits, because it undercuts the Roman Catholic Church's claim, reiterated in a Vatican finding this month, that most assets in individual dioceses cannot be put up for sale to settle claims. <br><br>The Vatican said investments and real estate such as churches and schools belonged to individual parishes.<br><br>But in Friday's ruling, U.S. Bankruptcy Judge Patricia Williams of Spokane appeared to take issue with that claim.<br><br>snip<br><br><!--EZCODE LINK START--><a href="http://www.latimes.com/features/religion/la-na-spokane27aug27,1,4890191.story?coll=la-news-religion&ctrack=1&cset=true">www.latimes.com/features/religion/la-na-spokane27aug27,1,4890191.story?coll=la-news-religion&ctrack=1&cset=true</a><!--EZCODE LINK END--> <p></p><i></i>