Portland Archdiocese Files for Bankruptcy

Paying victims of sexual abuse committed by the clergy has been difficult for Catholic dioceses in America. Now, the Portland Archdiocese has announced that the prospect of huge judgments against them is forcing them to file for bankruptcy in order to protect their assets from creditors. This is believed to be the first time a diocese in America has ever filed for bankruptcy.

The Chicago Sun-Times reports:

Plaintiffs in the two lawsuits involving Grammond have sought a total of more than $160 million. The archdiocese and its insurers already have paid more than $53 million over 50 years to settle more than 130 claims by people who say they were abused by priests. ... ''For a diocese to give up control like this, control over a lot of important decisions, a lot of spending decisions -- it's totally uncharted,'' said Chuck Zech, an economics professor at Villanova University who specializes in Catholic church finances.

Chapter 11 bankruptcy frees an organization from the threat of creditors' lawsuits while it reorganizes. But it could also open church records to public scrutiny, and could require church leaders to cede some financial control to the courts. ... Plaintiffs' attorney David Slader countered that the church was simply trying to avoid the details of the lawsuits coming out in court. ''The bishop hasn't begun to touch his pot. He is lying,'' Slader said. ... ''The archdiocese is one of the wealthiest corporations in Oregon,'' Slader said.

The accused priest, the late Rev. Maurice Grammond, was unrepentant:

Grammond served as a priest throughout the state from 1950 to 1985, when he took sick leave. Allegations of sexual abuse against Grammond were first reported in 1991, but the charges didn't become public until 1999 when a former altar boy sued him and the archdiocese. Grammond was suspended when he refused to fully cooperate in the church investigation. In a deposition taken before his death, Grammond said, "I'd say these children abused me. They'd dive in my lap to get sexual excitement."

Talk about disclaiming any and all responsibility for one’s actions — imagine, a priest claiming to have been the “real victim” of abuse at the hands of little children. It’s kind of like the Catholic Church saying that they are the “real victim” when sued those who were sexually abused for having covered up the problem for years.

Oh, wait... they already say things like that. Well, perhaps Grammond’s comments make more sense if they simply reflect an institutional attitude.

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