August 18, 2005
NEWS RELEASE
FOR IMMEDIATE RELEASE
For More Information, Contact:
Bud Bunce (503) 233-8373
bbunce@archdpdx.org
Parishioners notified of Class Action
Catholic parishioners in the Archdiocese of Portland will receive notification that they are part of a class action lawsuit in the Archdiocese’s bankruptcy proceedings. On July 22, 2005, the Bankruptcy Court certified a class of defendants composed of parishioners and donors. The notification states:
If you are or were a member of a parish or if you have made gifts, donations, and/or tithes to or for the benefit of any of the 124 parishes located within the territory of the Debtor, which is west of the Cascade Mountains in Oregon (“the Territory”) your rights as a parishioner (as well as the rights of the parish) may be affected by the Bankruptcy Case and the Lawsuit.The lawsuit has one defendant class composed of two sub-classes. One sub-class includes all parishes with their schools and missions. The second sub-class consists of parishioners and donors. Three Catholic high schools: Central Catholic in Portland, Regis in Stayton, and Marist in Eugene are not named in this class action, but the schools are part of the property dispute litigation. Archbishop John G. Vlazny wrote to parishioners in June, “We have steadfastly maintained that parish property and parish money belong to the individual parishes and are not available to pay creditors of the Archdiocese. After many months, it has been determined that parishes, along with parishioners, will have a voice in the proceedings as part of a class that is to be certified.”
The Notice summarizes the issue involved in the lawsuit:
The issue in this Lawsuit is whether parish churches, schools and certain funds, defined below as the Disputed Property, are available to pay claims against the Debtor. The Debtor contends those assets are not available to pay claims against the Debtor.The Notice of Class Action answers a number of questions parishioners may have concerning the lawsuit. The question: WILL I HAVE TO PAY ANY MONEY IF THE CLASS LOSES ALL OR A PART OF THE LAWSUIT? is answered: “Under no circumstances will you as a class member be liable for the payment of any money solely as a result of being a member of the class.”
Parishioners in the Class Action will be represented by Steven M. Hedberg, Douglas R. Pahl and Michael H. Simon of the Portland law firm Perkins Coie, LLP. A hearing is scheduled for October 11, 2005 at 9:30 a.m., at the U. S. Bankruptcy Court, 1001 SW Fifth Avenue, Seventh Floor, in Portland. Parishioners and other interested parties are invited to the hearing. The Notice explains to parishioners their rights as members of the class, their options and the potential consequences of those options.
The Notice of Class action is posted on the web site for the Archdiocese of Portland www.archdpdx.org/bankruptcy and on the web site for the Committee of Parishes and Parishioners www.parishionerscommittee.org/index.html.
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Editors Please Note: A copy of the Publication Notice of Class Action is attached to this news release.
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