Judge considering whether priests, attorneys are in contempt of court
By: SCOTT MARSHALL - Staff Writer | ∞
SAN DIEGO ---- Two Catholic priests and three attorneys have been ordered to appear in bankruptcy court this afternoon to explain to a judge why they should not be held in contempt of court.
The order from bankruptcy Judge Louise DeCarl Adler is based on allegations that the priests and attorneys have tried improperly to transfer money between accounts while the bankruptcy of the Roman Catholic Diocese of San Diego is pending.
The diocese filed for bankruptcy Feb. 28, bringing a halt to sexual abuse litigation on the eve of the first trial of an abuse case in San Diego. The diocese has offered to pay $95 million to settle the more than 140 sexual abuse claims filed against it, but attorneys for those who have sued in connection with alleged abuse by priests have said a fair settlement would be closer to $200 million.
The diocese, which covers San Diego and Imperial counties, has 98 churches, runs nearly 50 schools and has almost 1 million parishioners.
Adler wrote that it appeared that the diocese, parishes and their attorneys had conspired to transfer money.
An advocate for victims of sexual abuse by priests has issued a statement accusing the diocese of lying about its finances. Attorneys for the diocese have filed documents in which they argued that the diocese is not hiding assets in parish bank accounts.
In a five-page order filed Monday, Adler wrote that the attorneys and priests appeared to have misrepresented facts to the court and may have violated court orders and bankruptcy laws.
Adler gave the Rev. Bruce J. Orsborn of Blessed Sacrament church in San Diego, Monsignor Michael Gallagher of Our Lady of Grace church in El Cajon, and attorneys Susan G. Boswell, Jeffry Davis and Victor Vilaplana until 5 p.m. Tuesday to respond in writing to her order.
Boswell, who represents the diocese, wrote that no intentional misstatements have been made to the court.
Vilaplana represents the Organization of Parishes, which was formed to represent the interests of individual parishes during the diocese's bankruptcy. Davis represented the organization until last month.
Vilaplana and Davis wrote in their responses that they believed they were complying with court orders and implementing suggestions Adler made at a hearing March 1.
Orsborn, Gallagher, Boswell and Vilaplana could not be reached Tuesday for comment. Davis declined to comment.
Joelle Casteix, the southwest regional director of the Survivors Network of those Abused by Priests, issued a statement late Monday night in which she commended Adler and accused the diocese of lying about abusive priests and its finances.
"It should come as no surprise that the same diocesan officers who deceived parishioners, the police and the public about the sexual abuse of children would now attempt to deceive San Diego Catholics about the finances of the diocese," Casteix said in the written statement.
Adler wrote in her order that when the diocese filed for bankruptcy, it held property in trust for others, including 770 bank accounts that used the diocese's taxpayer identification number. Adler referred to those accounts as Alleged Parish Accounts.
The diocese cannot transfer property after filing for bankruptcy, nor use cash in the Alleged Parish Accounts "even in the ordinary course of business," without the approval of the court, Adler wrote.
At a March 1 hearing, Boswell told the court that how those accounts were handled would not change. Boswell and Davis indicated at that hearing that they were not asking Adler to decide whether the accounts were the property of the diocese or the parishes, Adler wrote.
However, in a March 17 letter, Gallagher wrote that the court had ordered parishes to obtain new taxpayer identification numbers for the Alleged Parish Accounts. Orsborn wrote a March 29 memo urging parishes to get the new numbers and providing instructions on what to do.
Boswell wrote in documents filed Tuesday that the diocese has no access to or interest in the 770 parish accounts Adler referred to in her order. The diocese does control a trust with funds for the parishes and Catholic schools in the diocese, but those funds are not released unless the parishes or schools can show donated money was designated for them, Boswell wrote.
Davis thought comments Adler made March 1 suggested that parishes should obtain their own taxpayer identification numbers for clarity in the bankruptcy case, and Orsborn was trying only to provide simple instructions to the parishes to do that, Davis wrote in documents filed Tuesday.
Gallagher's letter contained mistakes, but he does not speak for the Organization of Parishes, Valiplana wrote.
Attorneys for the diocese argued in documents filed with the court Friday that parish accounts are not part of the diocese's operations, that the court should not compel the parishes to disclose how much is in those accounts, and that the diocese "is not hiding assets" in those accounts.
-- Contact staff writer Scott Marshall at (760) 631-6623 or smarshall@nctimes.com.
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Jay wrote on Apr 11, 2007 12:35 AM:I am tired of all of these so called abuse cases. Get over it. Money is not the answer to your pain if you have been abused. Why should thousands of men and women who attend these churches did not abuse you. But you want them to pay you money for your alleged abuse. Many of the priests you claim abused you are dead and cannot defend themselves. I am not saying that some of you have not been abused. But what is money going to do for you. You need to pray for relief and get on with you lives as I have. yes I was abused not by a priest but a family member. Healing comes when you forgive and go on to living a christian life.
Troy Gray wrote on Apr 11, 2007 6:26 AM:I'm very surprised that Susan Boswell would be involved with something like this, especially when she worked so hard to help us victims in Tucson. YES, she helped bring the bankruptcy cases to a close in Tucson. Now the Diocese on the other hand, I'm not surprised. According to CHURCH LAW, parishes don't belong to the Diocese, even though it's the Bishop's signature on the deeds. Church hierarchy need to get it into their brains that church law has NO power in Federal, State, Civil, and Criminal law. It's like the place where I work protecting me under their handbook rules from any criminal or civil actions outside of work. Just doesn't work! The church pays out more money to attorneys to protect them than what it would cost to release files and compensate victims of clergy abuse! Think about that Catholics!
Bill wrote on Apr 11, 2007 7:41 AM:This latest round of deceitful behavior on the part of the San Diego diocese is just more of the same pattern the church has always followed: Take full advantage of civil law when it works to the church's advantage (tax exempt status, statutes of limitation, bankruptcy protection), but claim primacy of canon law when it wants to hide from the consequences of its actions. This shell game of asset-hiding is to be expected of a for-profit private sector company, but no truly Christian organization would resort to falsehoods that are clearly and directly in opposition to the gospel teachings they preach and claim to live by. All Catholics should realize that they are seen as sheep by these arrogant organization men who are a disgrace to the teachings of Jesus. As for Jay, someone with your experience has no excuse for being so ignorant about the consequences of child sexual abuse. Suppose you found out that everyone in your family KNEW about the molester in their midst and gave that person access to you anyway, then looked the other way while you were abused, and later told you to stop complaining and get over it. Let's see you declare it all bygones then and make nice with your relatives. THAT is the issue with Catholic clergy abuse, not only the abuse itself but the deliberate and cowardly cover-ups that enabled it. Abuse by clergy has been shown to create more lasting damage to victims, from chronic problems of drug and alcohol abuse, depression, and lost income from difficulties in professional pursuits. That's what the money is for. Bully for you if you've declared yourself above the fray, but I suspect your gripe is sour grapes because no one ever tried to right the wrongs done to you. That's too bad, but don't pretend to speak for other abuse survivors or to know what outcome is best for us.
Sarah wrote on Apr 11, 2007 9:42 AM:Nothing would surprise me any more about the diocese of san diego..the bishop is corrupt, arrogant, and believes he is above the law. Brom has been transferring funds for years, and it is just now coming to light because he was stupid enough to file for bankruptcy. But, no matter what, he will have to face God in the hereafter. As for you, Jay...wow! If you think you have gotten over your abuse you are truly fooling yourself! If you had, you would not be so full of righteous indignation and rage. You would want anyone else who went through what you did to be helped in any way possible. I do agree with what Bill wrote to you. You need to do some soul searching, and perhaps get some more help, because this is obviously eating away at you.
American woman wrote on Apr 11, 2007 10:24 AM:I'm not even going to read this...Priests and attorneys are in contempt of EVERYTHING and EVERYONE!
gimmeabreak wrote on Apr 11, 2007 10:41 AM:It would be nice to believe "Jay" up above, but he writes like an apologist for the Diocesan hierarchy, and he neglects to mention that it isn't just about money. It is about avoiding at all costs the publicity that would flow from public trials - the who,what,where and why of the acts and their coverup, that precipitated the bankruptcy filing. The church - MY church - has simply done what the fine folks at Ford Motor Company did with the Pinto - analyzed this actuarially, and decided that the most prudent financial step was to slide over to BK court. That didn't work out so well for Ford, either, now did it? Hey, Jay, healing comes in a variety of forms. Sometimes its in the form of being able to stand up and confront your perpetrators and tell the world what was done to you.
Watching wrote on Apr 11, 2007 10:46 AM:Protecting the church is first and foremost in the preisthoods mind. First they tried to hide the whole stinking mess to protect their reputation. Now they are trying to protect the money of the church. They don't give two bits about their parisioners and they care even less about everyone else.
Mercy wrote on Apr 11, 2007 1:49 PM:By reading the ill informed and judgemental comments by the posters, one would guess that they have never made a mistake in their lives. Because only people who are perfect could write such self righteous nonsense. The fact is that the rules a huge bankruptcy case are very complex and subject to alot of interpretation. The attorneys involved in this matter are very honorable people and if they made a mistake, it was without malice. I predict that you will read tomorrow that the judge will not sanction them. Please get off your high horses and act like human beings.
John E wrote on Apr 11, 2007 2:19 PM:It's about time for the Roman church to realize that there is nothing desirable or even Biblical about a "celebate" clergy. Other Christian churches, including Eastern Orthodox, have always supported married clergy and their dependents, while the Roman church figured out a clever way to save money by avoiding having to pay for the latter. "Never trust anyone who speaks Latin -- doctors, lawyers, and Catholic priests."
Georgina wrote on Apr 11, 2007 2:23 PM:I don*t believe Jay IS a Victim/Survivor, (If that is your real name.) I have held many a Victim as they cried on my shoulder and, with broken hearts, poured out their stories to me in horrific detail. This Jay, doesnt speak or write like a Victim/Survivor. As for Bishop Brom? I will never understand the inhumanity of such a person. He and Cardinal Mahony and Cardinal Law, and all the other members of the so called, hierachy (Lowerarchy is more like it) seem to have been dehumanized by the priesthood. What a terrible price they*ve paid for the trappings of wealth and power.
Scott wrote on Apr 11, 2007 3:25 PM:What Jay seems to not understand is that the Church has known and covered up these acts of abuse for decades. It was only when it became financially hurtful to the church that reforms were finally discussed. Like any large corporation you have to force positive change by hitting thier pocket books. The reason we now have seatbelts in our cars was not because the auto makers decided to make a safer car. It was only after paying out millions in law suits that they decided to spend the extra $20.00 or so dollars to put them in thier cars. The same is with the church. They knew of the abuse and ignored it. San Diego continues to play hard ball for money. The hypocracy is shameful.
Georgina wrote on Apr 11, 2007 3:59 PM: Mercy seems to be on a high horse of his/her own. These Bankruptcy Attorneys are not children. They have handled complicated cases, such as the Bankruptcy of the Diocese of San Diego, hundreds of times; and are seasoned veterans of the the Federal Bankruptcy Process. Therefore, they are not supposed to make mistakes. Attorney Susan G. Boswell is the best in the business (that*s why the diocese hired her) and I truly believe she was not a party to this inappropriate transfer of funds by the Diocese of San Diego. I think someone else tried to pull a fast one on Ms. Boswell and the Federal Bankruptcy Court. As for that last remark about, *Act like human beings*? Rather ill timed, I would say since it was the inhumanity of Pedophile Roman Catholic Priests, Brothers, Deacons and Nuns, sexually butchering the Children of the Church that has brought us to this point in time.
Bill wrote on Apr 11, 2007 4:30 PM:Mercy, If you had read the judge's order for the diocese to appear you would realize that the bankruptcy laws in question are very specific and NOT subject to casual interpretation. The diocese folks are simply using the classic ploy of asking forgiveness rather than permission, doing what they know is illegal so the court looks like it's picking on the church if it sanctions them. These are highly paid, experienced attorneys who do NOT make these kind of "mistakes" without intending to. You are likely among the stooges urging us all to forgive the priests and bishops for their "mistakes" too, not acknowledging that their actions were unconscionable criminal acts that were repeated time and again. But surely they are, to use your idiotic and naive description, honorable people. Let's see how forgiving you are when your child or grandchild is raped by some pervert in a Roman collar and the bishop tells you to offer it up for the good of the church.
No Mercy wrote on Apr 11, 2007 6:22 PM:You are right in only one word, righteous. Righteous indignation. Some really holy people may be able to forgive the perverts who raped these children. It would take a saint to forgive the men who then tried to cover it up for the sake of the churches reputation. After all this you have the gall to ask us to give them the benefit of doubt? Nope, not anymore. Fortunatly the judge isn't buying it either.
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