Compensation payouts According to
Donald Cozzens, "by the end of the mid 1990s, it was estimated that ... more than half a billion dollars had been paid in jury awards, settlements and legal fees." This figure grew to about one billion dollars by 2002. Roman Catholics spent $615 million on sex abuse cases in 2007. In 2002, one attorney reported total earnings of $60 million from suing the church. For some of the payments loans of up to $500 million were extended to four American dioceses in 2005–07 by
Allied Irish Banks (AIB), based in the
Republic of Ireland.
Peter Sutherland had been chairman of AIB in 1989–93, and was the Consulter of the Extraordinary Section of the
Administration of the Patrimony of the Holy See from December 2006. AIB had to be nationalized during the
Irish financial crisis.
Bankruptcies Many US dioceses filed for bankruptcy or
Chapter 11 bankruptcy protection due to the cost of compensation to abuse victims. This has been criticized as a way to put further cases on indefinite hold. Chapter 11 protection avoids numerous costly individual trials, grouping them into one settlement. There is no discovery process about such matters as what church leaders knew as in a trial. Abuse survivors have called this a way to silence them. Joseph Piscitelli, a 1970s victim in the
diocese of Oakland, California whose 2020 case was put on hold when the diocese declared bankruptcy in 2023, said "Oakland could get together enough money to build a $200m cathedral not too long ago, but they can't get the money together to pay the child victims whom they raped for decades". • Citing monetary concerns arising from impending trials on sex abuse claims, the
Archdiocese of Portland (Oregon) filed for Chapter 11 bankruptcy on July 6, 2004, hours before two abuse trials were set to begin, becoming the first Roman Catholic diocese to file for bankruptcy. If granted, bankruptcy would mean pending and future lawsuits would be settled in federal bankruptcy court. The archdiocese had settled more than one hundred previous claims for a sum of over $53 million. The filing seeks to protect parish assets, school money and trust funds from abuse victims; the archdiocese's contention is that parish assets are not the archdiocese's assets. Plaintiffs in the cases against the archdiocese have argued that the Catholic Church is a single entity, and that the
Vatican should be
liable for any damages awarded in judgment of pending sexual abuse cases. • In December 2004, the
Diocese of Spokane, Washington agreed to pay at least $48 million as compensation to those abused by priests as part of its bankruptcy filing. This payout has to be agreed upon by victims and another judge. • On October 10, 2006, the
Diocese of Davenport filed for
Chapter 11 protection. The decision to file for bankruptcy was driven by many claims which focused on
Bishop Lawrence Soens, who had been accused of fondling as many as 15 students during his tenure as priest and principal at
Regina Catholic High School in Iowa City during the 1960s. Soens denies the allegations. A judge discharged one suit in October 2006. • On February 27, 2007, the
Diocese of San Diego filed for
Chapter 11 protection, hours before the first of about 150 lawsuits was due to be heard. San Diego became the largest diocese to postpone its legal problems in this way. The bankruptcy was dismissed November 16, 2007, on a motion by the Diocese after a settlement of $198 million was reached with 144 claimants. • On March 7, 2008, the
Diocese of Fairbanks filed for bankruptcy after the failure of negotiations to settle 130 civil suits filed by Alaska natives who claimed to be abused by priests, and other church employees, beginning in the 1950s. • On October 18, 2008, the
Diocese of Wilmington filed for bankruptcy as the first of some eight lawsuits (of more than 100 potential) was scheduled to go to trial the next day. • On January 4, 2011, the
Archdiocese of Milwaukee announced that it would be filing for bankruptcy. The church was facing more than 23 lawsuits, and attempts to reach a mediated settlement with victims failed in December 2010. This came two days before the Bishop was scheduled to be deposed about these cases, and after the church had refused to release the names or personnel records of the accused priests. The opposing attorney said that the bankruptcy filing was an attempt to delay turning over church records on the cases. The Milwaukee archdiocese has already paid out over $29 million to settle 200 cases over the last 20 years. They said that these additional cases would cause hefty legal fees that the dioceses could not afford. The diocese has assets of about $98.4 million, but $90 million of that is restricted for specific uses. Prior to the bankruptcy Cardinal
Timothy Dolan then an Archbishop, with
Vatican approval transferred $57 million from diocesan funds to prevent victims awarded compensation accessing the money. • On January 17, 2015, the
Archdiocese of Saint Paul and Minneapolis filed for Chapter 11 bankruptcy reorganization. • On December 7, 2015, the
Roman Catholic Diocese of Duluth filed for Chapter 11 bankruptcy reorganization. The bankruptcy follows a $8.1 million verdict against the diocese. • On February 19, 2020, the
Roman Catholic Diocese of Harrisburg filed for Chapter 11 bankruptcy protection after disclosing to federal bankruptcy court it has more than 200 creditors and estimated liabilities between $50 million and $100 million, with assets of less than $10 million. The Harrisburg Diocese was the first Catholic diocese in Pennsylvania to seek bankruptcy protection. • On May 1, 2020, the
Roman Catholic Archdiocese of New Orleans filed for Chapter 11 bankruptcy. • On March 15, 2023, the Roman Catholic Diocese of Albany, NY filed for Chapter 11 bankruptcy protection.
Seal of the confessional One issue that is often raised by legislators and law enforcement is the confidentiality which is enjoyed
between priest and penitent in the
Sacrament of Penance. In the Catholic Church, the penitent's confession of sins is
absolutely secret and can be revealed to no one. Western democracies, and in particular, the US government, have historically recognized and upheld this confidentiality, but , some challenges have been brought against this secrecy. In North Dakota, a bill was introduced which will compel Catholic priests to divulge the confessions they have heard to law enforcement, abolishing the priest-penitent privilege.
Resignations In 2002, the
Diocese of Manchester signed an agreement with the state's attorney general, acknowledging that past diocesan failures to protect minors from abusive priests were possible grounds for the diocese as an institution to be convicted under the state's child endangerment statute. On February 10, 2003, a special grand jury was conducted by the Suffolk County District Attorney's Office under the leadership of District Attorney
Thomas Spota. "The grand jury concludes that the history of the Diocese of Rockville Centre demonstrates that as an institution they are incapable of properly handling issues relating to the sexual abuse of children by priests," the special grand jury said in a 180-page report based on a nine-month inquiry.
Bernard Francis Law, Cardinal and
Archbishop of
Boston, Massachusetts, United States resigned after Church documents were revealed which suggested he had covered up sexual abuse committed by priests in his archdiocese. For example,
John Geoghan was shifted from one parish to another although Cardinal Law had often been informed of his abuse. In December 1984 auxiliary Bishop John M. D'Arcy wrote to Cardinal Law complaining about the reassignment of Geoghan to another Boston-area parish because of his "history of homosexual involvement with young boys." ==Continued attention to issue==