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  Catholic Diocese of Tucson Files Revised Bankruptcy Documents

KVOA [Tucson AZ]
May 29, 2005

Three brothers in Yuma who say they were repeatedly raped by a priest will each receive at least $600,000 under terms outlined in revised bankruptcy documents filed by the Roman Catholic Diocese of Tucson.

The brothers and other victims of clergy sexual abuse who have claims against the diocese could be paid from a total pot of more than $20 million, according to the revised bankruptcy reorganization plan. The amended statement and Chapter 11 plan were filed late Thursday in federal court.

Exactly how many plaintiffs will be dividing the money remains unclear. The Bankruptcy Court has logged 103 claims against the diocese, but they must be approved by the court as valid before claimants are eligible to receive any settlement money. A committee of tort claimants filed a motion Friday disputing 74 of the claims.

The revised disclosure statement says the diocese's minimum contribution to settlements with victims is $15.7 million, but stipulates that additional contributions to plaintiffs are possible as the diocese continues to pursue settlements with insurers.

A previous disclosure statement had proposed capping the settlement contribution at $20 million, but that ceiling was removed in the new document.

Creditors have until Tuesday to file objections to the new statements. A hearing in front of A federal bankruptcy Judge is scheduled for Wednesday.

Under the revised statement, plaintiffs with valid claims they were sexually abused will receive initial payments of up to $600,000 per person, likely this year if the plan is approved on schedule. The amended disclosure statement is still subject to the approval of the Bankruptcy Court and two-thirds of the diocese's creditors.

The claims would be put into four tiers depending on the egregiousness of the abuse.

Marlar has already approved placing the three Rodriguez brothers of Yuma in tier four, which would pay at least $600,000 to each claimant as an initial settlement.

The Yuma brothers, two of whom are still teenagers, had a lawsuit pending against the diocese on Sept. 20 when the diocese filed for federal bankruptcy protection. The brothers say they were repeatedly raped, as recently as 2002, by the Rev. Juan Guillen, a Yuma priest now serving 10 years in state prison.

Guillen pleaded guilty in 2003 to two counts of attempted child molestation as part of a plea agreement.

The brothers' parents, also parties in the lawsuit, would receive a settlement of $15,000 under the proposal.

The diocese, which oversees 350,000 Catholics in nine counties, filed for federal Chapter 11 bankruptcy protection Sept. 20 in the face of 22 pending lawsuits alleging sexual abuse of children by priests who once worked in the diocese.

The diocese's bankruptcy plan could be approved within the next 60 days. Final confirmation hearings are scheduled for July 11-15.

 
 

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