Tuesday, February 12, 2008

Sacred Heart Cathedral to provide $1M to settlement

Sacred Heart Cathedral in Davenport will give $1 million toward the $37 million Davenport Catholic Diocese bankruptcy settlement, making it the last of four churches involved to be publicly identified.

St. Anthony’s in Davenport also will provide $1 million. St. Mary’s in Iowa City will give $650,000. Our Lady of Lourdes in Bettendorf will donate an unspecified amount, officials said.

However, the diocese has said the four parishes will be providing $2.9 million, which would make Lourdes’ portion $250,000.

Clergy at those churches have been involved in some of the most severe claims of sex abuse among the 156 filed as part of the diocese’s bankruptcy, leaders say.

Craig Levien, attorney for many of the sex abuse victims, questioned how the diocese can say on one hand say the parishes are independent corporations for the sake of determining assets, and then “when the rubber hits the road, the bishop is telling unilaterally what churches” will pay.

“To be fair, there should have been a request across the board to all parishes, schools and universities to contribute,” Levien said.

At St. Anthony’s, the finance council and parish trustees approved the payment, according to a letter from the Rev. Jack Gallagher. The money will be taken from a parish investment account set up for wills and bequests. Investments have done well recently, he wrote, and the profits will be used to make the payments. None of the money will be taken from Sunday envelope collections.

Five of the 156 claims filed in the diocesan bankruptcy claimed abuse occurred at St. Anthony’s between 1954 and 1971, Gallagher said.

At St. Mary’s, the money will be taken from parish savings, the church bulletin says. The finance council agreed to contribute the money, pending verification of potential claims and approval of the release documents, the council says.

Four people claim they were sexually abused by Monsignor Carl Meinberg, who was pastor at St. Mary’s from 1940 through 1967, officials said.

The bankruptcy settlement absolves all parishes and other Catholic entities of liability for abuse prior to October 2006.

The remaining portion of the $37 million will come from a variety of sources.

The St. Vincent Home Corp., a diocesan children’s charity, will pay $3 million, while the diocese will provide $5.7 million in cash and likely borrow $2 million. Once the settlement is paid, the diocese will announce a campaign to restore its finances, and find office space and a place for retired priests to live, officials have said.

The settlement includes the deeding of the diocesan headquarters, the St. Vincent Center, to the bankruptcy settlement trustee. It is valued at $3.9 million. The Travelers, an insurance company, will pay $19.5 million.

The diocese filed for bankruptcy after losing the first civil sex abuse case that went to trial. It was brought by Michl Uhde, who was awarded $1.5 million by a Scott County jury for abuse he suffered as a child by the late Monsignor Thomas Feeney at Sacred Heart Cathedral.

Michael Gould of Florida was set to go to civil trial shortly after the diocese filed for bankruptcy. He accuses retired Sioux City Bishop Lawrence Soens, who was once a priest in the Diocese of Davenport, of abuse while Soens was principal at Regina High School in Iowa City. That case is on hold pending the outcome of the bankruptcy.

The next bankruptcy court hearing is March 5.
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