The Roman Catholic Diocese of San Diego filed for bankruptcy protection late Tuesday to put off going to trial in more than 140 civil lawsuits alleging sexual abuse by priests.The petition was lodged with the federal bankruptcy court in San Diego at 11:55 p.m., just hours before the first trial was scheduled to go forward in a San Diego courtroom. A Chapter 11 filing automatically halts court proceedings.
San Diego is the fifth U.S. diocese to file for bankruptcy protection under the shadow of sex abuse claims. With nearly 1 million parishioners, it is also the largest.
In a letter posted on the diocese's Web site earlier in the day, Bishop Robert Brom wrote that the diocese had "decided against litigating our cases because of the length of time the process could take and, more importantly, because early trial judgments in favor of some victims could so deplete diocesan and insurance resources that there would be nothing left for other victims."
Brom said in his letter that the diocese would disclose the names of accused priests who officials are certain participated in abuse, and "we will verify that no known abuser is functioning in ministry."
Diocese officials and plaintiffs' attorneys failed to reach a settlement during two days of negotiations, wrapped up Monday, in Los Angeles Superior Court.
The diocese called plaintiffs' attorneys Tuesday morning to make a "final and best" settlement offer, said Micheal Webb, attorney for the diocese. He declined to specify how much the church had offered but said it was higher than total settlements reached in other U.S. dioceses.
"When they rejected it, we were left with no choice," Webb said.
The lead plaintiffs' attorney, Ray Boucher, disputed Webb's characterization of the offer and described it as an "ultimatum."
He said Webb had not provided sufficient financial information to allow plaintiffs' attorneys to determine whether the offer was reasonable.
Boucher claimed the diocese was planning to file for bankruptcy protection even if the offer were accepted.
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