US Bankruptcy judge Patricia Williams has ruled that Spokane Diocese, its law firm Paine Hamblen, and one of the firm's attorneys, Gregory Arpin, are in contempt of court for using intimidation tactics against a court-appointed bankruptcy trustee. Judge Williams stopped short Tuesday of issuing costly sanctions, but ordered the diocese and its attorneys to pay what will be expensive legal costs of the trustee and others, the Spokesman reports.
She delivered a curt order designed to blunt future threats from the diocese while clearing the way for the trustee, Gloria Nagler, to pay people who have shown they were sexually abused by Catholic clergy.
A $48 million settlement for victims of clergy sex abuse reached in 2007 left open what the diocese assumed would be the slight possibility of new claims, called future claims.
There have now been at least 21 of these new claims, brought by people who say they were sexually abused by clergy decades ago - a number that has surprised the diocese and its legal team. There have been no accusations of recent abuse.
Some of the claims already have been allowed by a special case reviewer, although the diocese is pursuing an appeal.
Despite the appeal, the Bankruptcy Court judge ordered Nagler, the trustee, to proceed with payments on the future claims.
Arpin sent an e-mail to Nagler threatening to sue the trustee personally if the diocese won its appeal after she had paid the claims, according to court records.
Williams ruled that the e-mail constituted a threat.
John Munding, an attorney from a separate firm that also represents the diocese, said that while the contempt ruling is disappointing, the diocese respects the judge's opinion.
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