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	Catholic Diocese Seeks Stay of Proceedings By Margaret McLaughlin Canada NewsWire Group [Canada] Downloaded March 9, 2005 Attention News Editors: CORNER BROOK, NL, March 8 /CNW/ - The Most Rev. Douglas Crosby, Bishop of St. George's Diocese, today announced that the Roman Catholic Episcopal Corporation of St. George's, the civil arm of the Diocese, filed a Notice of Intention to file a proposal pursuant to the Bankruptcy and Insolvency Act. This filing will effect a "stay of proceedings" in civil actions against the Corporation including those launched since 1991 on behalf of 36 victims of sexual abuse by Kevin Bennett, then a priest of St. George's Diocese. The intent of the filing is to provide the Corporation with adequate time to develop a proposal to its creditors offering a better compensation plan than would be available if the Corporation were forced to declare bankruptcy. In 1990 Bennett was sentenced for the sexual abuse of a number of young men over a period of almost 20 years and served four years in prison. Since that time a number of victims have launched civil suits at a total claimed value in excess of $50 million. In March 2004 the Supreme Court of Canada found the Corporation directly and vicariously liable for claims by 36 individuals. "No amount of money can compensate for the abhorrent taking of innocence, which is priceless," said Bishop Crosby. "We are determined to treat the victims fairly with the greatest possible value of our assets. We are asking them to work with us so that we can all move past the horror that has brought us to this place." The Corporation is currently reviewing its financial resources including land holdings, loans receivable, investments and insurance coverage. The ability of the Corporation to access insurance coverage to assist in payment of the claims is still an unresolved question and is being addressed by legal counsel. "Bishop Leonard Whitten, retired Anglican Bishop of Western Newfoundland, has generously agreed to serve as an independent and external reviewer of our financial resources," said Bishop Crosby. "We are most grateful to the bishop for his support and assistance during this difficult time." The initial stay of proceedings is for a period of 30 days, with possible extensions available at the discretion of the Court. Once finalized, the Corporation's proposal will be made available to creditors including the claimants in civil actions for their acceptance or rejection. If accepted by the creditors, it is further subject to approval by the Court. If not approved, the Corporation is automatically bankrupt and a Trustee will liquidate the Corporation's assets. The Diocese of St. George's, established in 1904, is located in Western Newfoundland. It serves a Catholic population of 32,060 found in 20 parishes under the pastoral care of 18 priests. St. George's is one of four Catholic dioceses in the province. The Diocesan Centre is located in Corner Brook.
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