EUGENE, Ore. – Nearly all the approximately 170 people claiming they were sexually abused by priests who once worked in Western Oregon have agreed to settle their lawsuits against the Roman Catholic Archdiocese of Portland, a federal judge who mediated the deal announced on Monday.
U.S. District Judge Michael Hogan announced the agreement but would not give a dollar amount. He told reporters that insurance companies have agreed to provide more than $50 million to the settlement, and that all current and future claims could be covered by the archdiocese without selling off property held by parishes and schools.
The Archdiocese of Portland was the first in the nation to seek protection from creditors when it went to federal bankruptcy court to head off a massive sex-abuse lawsuit.
A settlement agreement has been reached with about 150 claimants, leaving about 20 to go, Hogan said. He expressed confidence those cases would be settled as well. The agreement will be filed with the U.S. Bankruptcy Court by Monday.
Court records show the archdiocese has spent $15 million already on legal costs in the case. Before going into bankruptcy court in 2004, the archdiocese had paid out $53 million in claims, with insurance covering about half.
“These are expensive lessons,” Hogan said. “All of our hope is, including the archdiocese, is that they have been learned.”
All parties to the litigation remained under a strict gag order.
David Clohessy, national director of Survivors Network of those Abused by Priests, who is not a party to the case, said in a statement that he hoped the settlement would bring healing to the victims.
“We are grateful they had the wisdom to go to the courts and had the persistence to continue throughout this arduous process,” he said. “Kids are safer because of their courage. Every Catholic in Oregon owes these wounded but compassionate victims a debt of gratitude.”
Despite the settlement agreement, there’s still work to be done in the Portland Archdiocese bankruptcy case.
Terms of the settlement will have to be incorporated into a new reorganization plan for the archdiocese. And U.S. bankruptcy Judge Elizabeth Perris will have to rule that the reorganization plan is fair for all parties.
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