Archbishop's  Column  by  Archbishop John G. Vlazny

The Year of the Eucharist is ending this month. At the cathedral we shall conclude this yearlong observance at the 11 a.m. Mass on Sunday, Oct. 23. I look forward to thanking God for the blessings of the Eucharist in our lives and for the many graces that have been ours during this challenging time in the life of our archdiocesan church.

In many ways it was truly a blessing that the Year of the Eucharist concurred with a year of great frustration and concern for our people because of the declaration of bankruptcy in July 2004, the unfortunate result of the extensive litigation we experienced because of child sexual abuse by some of our own clergy. This has been a terrible scandal that has brought great shame to so many of us. It has been a time of humiliation for our church. It has also been a time of suffering for victims, for perpetrators, for families and friends of both. I thank God every day that Jesus gave us the gift of the Eucharist where we can still gather as sisters and brothers and pray for the graces of healing and reconciliation which are the only effective vehicles for bringing an end to all the pain.

At recent meetings with the Presbyteral Council, the Pastoral Council, the Finance Council and the Consultors, I have been reminded again and again about your anxiety and uncertainty throughout these months of bankruptcy. Many of you are worried about the impact this will have on your own parishes and ministries. Church employees are understandably concerned about their jobs. Some victims have been led to believe that the church is trying to avoid providing them with just compensation. Those who collaborate with me in providing leadership and pastoral care for the archdiocese are frequently accused of a lack of compassion for victims, incompetence in dealing with these complicated matters and failure to communicate with our people effectively and honestly.

First of all, you need to know that this archdiocesan church has been focused for the past five years on compensating all victims justly within our means. Remember that more than $50 million went to victims before we were forced into bankruptcy. It was only when insurance companies failed to provide the financial support owed us and lending institutions would no longer make funds available to us that we had to seek bankruptcy protection. We did this so that we could carry on the ministries of our church and provide compensation for as many victims as possible, not simply those first in line.

Sad to say, there have been many plaintiffs. We need to understand the nature of each complaint so that an appropriate response can be made to each alleged victim. Not all grievances are the same, and some are even questionable. Most, however, have been quite credible.

In the bankruptcy proceedings we have been working on three distinct issues. First of all there is the responsibility of reaching out to victims and offering them whatever justice and even charity might require. As you may recall, there were nearly 70 plaintiffs awaiting compensation when we filed for bankruptcy. Mediations with them and their attorneys have taken place in August and September. In many cases an agreement was reached about legitimate compensation. We continue to work with the others.

The bankruptcy court allowed other people to file complaints up to April 29 of this year. Nearly 200 more claims of all kinds were filed. Attorneys and staff have been sorting through them and making an effort to ascertain what each one will require. Some were questionable, and the court will be dealing with them. Some of you have been concerned that we are simply paying off individuals to keep them silent. That has never been our intention or practice. In fact, the filing of bankruptcy eliminates any possibility of keeping things silent since all matters are on the public record.

There will also be a need to provide funds for future claims that may arise. The court insisted upon this, and we have also agreed with the tort claims committee about a procedure for making a determination about adequate funds that need to be set aside for that purpose.

In addition to dealing with the compensation of victims, we also have had to confront the insurance companies, which, in our judgment, owe us money for past settlements and should be contributing to the settlements under consideration in bankruptcy court. We have had to file suit against these insurance companies. They have demanded thousands of pages of documentation from us to determine the extent of the insurance they agreed to provide and also the honesty and transparency of the church in dealing with such claims over the past nearly 70 years. This has been a time-consuming and painstaking undertaking, but we hope it will result in justice for all those who paid the insurance premiums on behalf of the church in years gone by.

Last but not least has been the perplexing question about the extent of the financial resources and property of the archdiocese. We have asserted that archdiocesan property and financial assets at the time of bankruptcy were approximately $19 million. Plaintiffs’ attorneys assert that everything that belongs to parishes and institutions of the archdiocese should be included in the estate and made available for settlements. This is simply out of line with church law and practice. I could never release such assets for this or any other purpose. Important argumentation has been provided to the court for a hearing that is scheduled to take place with respect to these matters later this month. You already know that the Diocese of Spokane received a negative ruling making the same assertion before the bankruptcy court there. We are hopeful that the court here will see matters differently and that we have explained clearly the legitimacy of our assertion.

The bottom line, of course, is that we must put together a financial plan for reorganization to be presented to the court in mid-November. Because we want to compensate victims and must do so in accord with the laws of our state, sufficient funds that will satisfy the demands of plaintiffs without illegally debilitating the work of our parishes or unnecessarily hindering the mission of the archdiocese must be provided. With the help of insurance funds, loans that were not possible before bankruptcy and whatever other financial support might be forthcoming from friends of the archdiocese in the form of gifts or loans, we shall pay our debts and emerge from bankruptcy.

Much work remains to be done, but there is hope that we will eventually be able to come to the conclusion of this difficult time without undue prolongation or further suffering on the part of all persons involved. I thank you for your prayerful support. As we come to the end of our Year of the Eucharist, please pray that soon we shall resolve these matters and thereby conclude this painful period of bankruptcy with justice for all. May it be a very positive step forward in providing healing and true reconciliation for our church and our community

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