BishopAccountability.org
	Catholic Diocese Settles with Victims of Sexual Abuse Canada NewsWire Group [Canada] May 25, 2005 CORNER BROOK, NL, May 25 /CNW/ - Ernst & Young Inc., in its capacity as Trustee in the Proposal of the Roman Catholic Episcopal Corporation of St. George's, today announced that the creditors of the Corporation voted overwhelmingly in favour of the Corporation's Proposal. The Most Rev. Douglas Crosby, OMI, Bishop of St. George's Diocese, expressed his gratitude that the victims of sexual abuse along with other creditors of the Corporation, the civil arm of the diocese, voted to accept the Corporation's proposal. "Today's vote confirms our hope that the victims would see our proposal as fair and just," said Bishop Crosby. "I've acknowledged from the outset that while no amount of money can compensate these young men for the harm that was done to them and their families, it was our moral and legal obligation to offer them everything we could possibly manage." In 1990 Kevin Bennett, then a priest of the Diocese of St. George's, was sentenced for the sexual abuse of 36 young men over a period of almost 20 years and served four years in prison. Since that time a number of victims 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. On March 8, 2005 the Corporation filed a Notice of Intention to file a proposal pursuant to the Bankruptcy and Insolvency Act, which effected a "stay of proceedings" in civil actions against the Corporation. The intent of the filing was 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. The proposal presented to the creditors on May 6th included a financial settlement of over $13 million to the victims of sexual abuse. The agreement reached today between the Corporation and its creditors is subject to final approval by the Supreme Court of Newfoundland and Labrador. If the Court approves the agreement, then the Corporation will be bound by the parameters of its proposal to discharge its financial commitment to its creditors. 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. www.rcchurch.com