Fairbanks Diocese has agreed to a settlement of $10 million for almost 300 alleged victims of clergy abuse. The agreement was discussed Tuesday at a status hearing in federal bankruptcy court and will need to be finalized. The deal could be completed by mid-January, AP reports.
Plaintiffs' attorney Ken Roosa said some of the payoff would be put aside to pursue as much as another $100 million from two of four insurance companies for the diocese that have balked in court at paying on behalf of the church. The rest would be divided among alleged victims, depending on the severity of abuse.
Roosa said the diocese would accept liability for "many, many" millions of dollars. In return, a committee representing claimants would agree that it can't collect that money from the diocese, but instead would go after the insurance companies.
The diocese filed for bankruptcy protection last year and all proceedings are overseen in bankruptcy court in Anchorage.
The diocese was "extraordinarily pleased" with the agreement, according to a spokesman, who called it an important milestone in its reorganization effort.
"We look forward to working with the claimants so that the insurance companies fulfill their obligations," Chancellor Robert Hannon said.
"This is all about finding a just way to compensate those who were harmed and we'll have much work to do to restore their trust."
Elsewhere, abuse victims in Rhode Island called on Providence Bishop Thomas Tobin to release details of priest abuse in the diocese.
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