Arizona Capitol Reports Staff//August 26, 2005//[read_meter]
Arizona Capitol Reports Staff//August 26, 2005//[read_meter]
Victims of sexual abuse by clergy could start receiving settlement checks from the Roman Catholic Diocese of Tucson as early as October, attorneys said.
The payments stem from the diocese’s bankruptcy case and will be limited to victims whom a bankruptcy judge had previously authorized to receive them.
During a brief court hearing Aug. 22, Judge James Marlar approved previously announced settlements by which the diocese will make more than $22 million available to cover claims under its reorganization plan finalized in July. The diocese was only the second in the nation to file for Chapter 11 reorganization protection in the face of litigation stemming from alleged sexual abuse by priests.
Judge Marlar entered a written order Aug. 1 approving the reorganization plan and settlements, and the soonest that checks could be issued would be 60 days later.
Susan Boswell, the diocese’s chief bankruptcy lawyer, said checks to victims — creditors of the diocese — should begin flowing by year’s end.
Some victims initially will receive as much as $600,000 apiece, with more money potentially available depending on the outcomes of perhaps 17 pending claims and whether future unknown claims are filed.
The settlement trust that will issue the checks must be funded first, she said.
Clifford Altfeld, another bankruptcy lawyer in the case, said he wouldn’t be surprised to see checks issued sometime in October. —
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