Monday, July 16, 2007

Church sex scandal to cost at least $600 million

The Catholic Archdiocese of Los Angeles will settle its clergy abuse cases for at least $600 million, by far the largest payout in the church's sexual abuse scandal.

The news came two days before jury selection was to begin in the first of more than 500 clergy abuse cases.

Sanchez, one of the plaintiffs set to go to trial today, had been expected to testify in a case involving the late Rev. Clinton Hagenbach. He had to repeat his story of abuse in recent months for depositions with his attorneys and archdiocese attorneys.

"We're 48 hours away from starting the trial and I've been spending a lot of time getting emotionally prepared to take them on, but I'm glad," the 47-year-old financial adviser said. "It's been a long five years."

Attorneys for the archdiocese and the plaintiffs are expected to announce the deal Monday, according to two people with knowledge of the agreement. The sources spoke on condition of anonymity because the settlement had not been made public.

The archdiocese and its insurers will pay between $600 million and $650 million to about 500 plaintiffs -- an average of $1.2 million to $1.3 million per person.

The settlement also calls for the release of confidential priest personnel files after review by a judge assigned to oversee the litigation, the sources said.

It wasn't immediately clear how the payout would be split among the insurers and the archdiocese.

A judge must sign off on the agreement, and final details were being ironed out.

Lead plaintiffs' attorney Ray Boucher confirmed the sides were working on a deal, but he would not discuss specifics. He said negotiations would continue through the weekend and that there were still many unresolved aspects.

Tod Tamberg, archdiocese spokesman, declined to comment on any settlement details.

The settlement would be the largest ever by a Catholic archdiocese since the clergy sexual abuse scandal erupted in Boston in 2002.

Among the largest total payouts was $100 million in 2004 by the Diocese of Orange, Calif., to settle 90 claims.

The Archdiocese of Boston agreed in 2003 to pay $84 million for 552 cases, about the same figure the Diocese of Covington, Ky., agreed last year to pay to settle about 360 claims.

The Los Angeles archdiocese and its insurers have paid more than $114 million to settle 86 claims so far.

Cardinal Roger Mahony recently told parishioners in an open letter that the archdiocese was selling its high-rise administrative building and was considering the sale of about 50 other church properties to raise funds for a settlement.

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