Spokane, Wash., Aug 28, 2005 / 22:00 pm
In a shocking decision last week, a federal bankruptcy judge ruled that all parish churches, schools and other property of the Diocese of Spokane could be liquidated to pay 58 alleged victims of clergy sexual abuse.
Bishop William Skylstad had argued in court that he did not control individual parishes and they were not available to cover settlement, reported the Associated Press. He said only about $10 million worth of real estate were under his control, and that the diocese has filed for bankruptcy protection last year.
But lawyers argued that the bishop holds title to and controls more than 82 parish churches, 16 schools, Catholic cemeteries and other property in eastern Washington state, making his financial assets total more than $80 million, reported the AP.
The decision ignores the fact that parishes and other institutions, associated to the diocese, are independent legal entities. It is expected to impact dioceses and cases across the country.