Loading
Portland Archdiocese files for bankruptcy
Facebook Twitter Google+ Pinterest Addthis

.- The Archdiocese of Portland has filed for Chapter 11 bankruptcy.  Archbishop John G. Vlazny made the announcement yesterday, citing the great costs of clergy sex abuse lawsuits.

The bankruptcy filing halted the trial of a lawsuit – which was to have begun yesterday – against the late Fr. Maurice Grammond, who was accused of molesting more than 50 boys in the 1980s. Grammond died in 2002.

Plaintiffs in two lawsuits involving Grammond have sought a total of more than $160 million in compensation. The archdiocese and its insurers already have paid more than $53 million over 50 years to settle more than 130 claims by people who say they were abused by priests. Of these claims, more than 100 were settled in the last four years for about $21 million, paid from the archdiocese’s own funds. About 60 claims of sexual abuse are still pending.

“This is not an effort to avoid responsibility,” said the archbishop, referring to the bankruptcy filing. “It is, in fact, the only way I can assure that other claimants can be offered fair compensation,” he said in a letter he read to the faithful.

“Major insurers have abandoned us and are not paying what they should on the claims,” he added

“Attorneys for the plaintiffs claim that the assets of all the parishes and schools and of various trust funds holding charitable contributions are available to pay their clients,” the archbishop said.

However, Archbishop Vlazny explained that, under canon law, parish assets belong to the parish, not to the archdiocese. Despite this, he assured parishioners that he would not seize parish property to settle claims, nor would he use other assets, held in charitable trust.

The archbishop announced his regret at the decision, but he said seeking bankruptcy protection “is a just and prudent course of action.

“This action offers the best possibility for the archdiocese: to resolve fairly all pending claims, to manage a difficult financial situation and to preserve the ability of the archdiocese to fulfill its mission,” he explained. “It will also allow us to continue our good works without fear of an impending large verdict. The operation of our parishes and schools will continue as usual.”

Archbishop Vlazny's full letter can be read at: http://www.archdpdx.org/newsrel/letter.html

Ads by AdsLiveMedia(What's this?)

* The number of messages that can be online is limited. CNA reserves the right to edit messages for content and tone. Comments and opinions expressed by users do not necessarily reflect the opinions or beliefs of CNA. CNA will not publish comments with abusive language, insults or links to other pages

RESOURCES »

Ads by Google (What's this?)

Featured Videos

An Indian contribution to the Vatican's Synod on the Family
An Indian contribution to the Vatican's Synod on the Family
Christ Cathedral CNA video Sept 2014
Alejandro Bermudez of CNA accepts ice bucket challenge
'The Real Albania,' remembering those who fled
Pope Francis in Albania, "one of the most important visits of the post-communist era in Albania"
Pope Francis greets paralyzed man who risked all to see him
Franciscans on the banks of the Tiber in Rome, working for the New Evangelization
Pilgrimage from Czech Republic to Assisi and Rome for intentions
Testimony of young Indian who met Pope in Korea
Preparations of the Closing Mass of 6th Asian Youth Day
Missionary of Charity, Korea
Testimony of Christian Love during Pope's Visit to Korea
Religious Sisters in South Korea react to Pope Francis kissing a baby
Warm atmosphere during Holy Mass at Daejeon World Cup Stadium
Images inside Pope Francis flight to South Korea
The tombs of the early Christians
Missionaries of Africa, called "the White Fathers"
Italian youth give testimony after mission to Peru
Interview with Iraqi Ambassador to the Holy See on the persecution of Christians
New book 'The Vatican unknown'
Oct
25

Liturgical Calendar

October 25, 2014

Saturday of the Twenty-Ninth Week in Ordinary Time

All readings:
Today »
This year »

Catholic Daily

Gospel of the Day

Lk 13:1-9

Gospel
Date
10/25/14
10/24/14
10/23/14

Daily Readings


First Reading:: Eph 4: 7-16
Gospel:: Lk 13: 1-9

Saint of the Day

St. Romuald »

Saint
Date
10/25/14

Homily of the Day

Lk 13:1-9

Homily
Date
10/25/14
10/24/14
10/23/14