Oregon SJs file for bankruptcy.

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Facing more than 200 sexual-abuse lawsuits, the Oregon Province of the Society of Jesus has filed for Chapter 11 bankruptcy protection. In the filing, the province claims about $5 million in assets with liabilities nearing $62 million. CNS has the story.

“Our decision to file Chapter 11 was not an easy one, but with approximately 200 additional claims pending or threatened, it is the only way we believe that all claimants can be offered a fair financial settlement within the limited resources of the province,” said Jesuit Father Patrick Lee, provincial, in a Feb. 17 statement.

The statement noted the province has worked “diligently” to resolve claims of priests’ misconduct, saying it has settled more than 200 claims and paid more than $25 million to victims since 2001. That amount does not include payments made by insurers.

(…)

In 2007, the province announced a $50 million settlement between the Jesuits and more than 100 native Alaskans for cases of sexual abuse involving more than a dozen Jesuits posted in Alaska between 1961 and 1987.

While apologizing for the abuse, the provincial ritually acknowledged that such “actions” were carried out by “a few.” This is not an opportune time for minimization.

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  1. This should get interesting since the Jesuits are arguing that only the one province is involved and insitutions such as Jesuit universities, colleges, high schools are not part of the province from a financial viewpoint.

    Attorneys will argue differently and will also make a case that it is ten US provinces; not one. This could get ugly – that would mean such revered places as Boston College, Georgetown, Fordham, etc.

    What would Iggy say?

  2. Here is a statement from the victims’ lawyer: http://news.opb.org/article/jesuits-declare-bankruptcy-response-alaska-sex-abuse-lawsuits/

    A few more intersting twists to this story:
    – the Jesuits serving in Alaska came from a number of different provinces even if Alaska was attached to the Oregon Province;
    – since the province is not making any public statement, it is difficult to determine how old these cases are; how many priests involved; whether there have been allegations dating after 1985?

  3. Bill DeHaas,

    The American Assistancy of the Society of Jesus has for some time now been undergoing a reorganization plan that will combine provinces. In the end there will be fewer than ten. For example, New York and Maryland are combining in a few years and down the road New England will be joined with them. The same is true for provinces across the country. The question of who would combine with Oregon has been unsettled precisely because of this matter. Bankruptcy may make it easier now for them to join with another or other provinces. The “claim” that the colleges and universities have been separately incorporated has been true for more than thirty years. They have not been “owned” by the Society since then. I do not think lawyers will be able to prove otherwise. Iggy would have said “tantum quantum.”

  4. A small, probably unnecessary addendum to Professor Mitchell’s very helpful explanation. Each of the provinces is separately incorporated. I think this incorporation has been very carefully legally secured. I don’t see how the travails of the Oregon Province could affect the position of the other nine provinces.

  5. If I may be allowed another small sidebar. When the Jesuits were suppressed in 1783, the small Maryland mission (founded, 1634) decided to keep themselves banded together. They adopted the legal title of “The Roman Catholic Gentlemen of Maryland.” I believe this remains the corporate title of the Maryland Province, And the Maryland SJs are subject to a bit of ribbing from their other US conferes because of it.

  6. An article on the question: http://www.thenewstribune.com:80/updates/story/632438.html

  7. John Page,

    I do not know when it was changed, but for some time now the legal title of the Maryland Province has been the Roman Catholic Clergymen of Maryland.

  8. Mr. Mitchell – interesting history. The Vincentians are also in the middle of reuniting their US provinces – in 2010 the Midwest, West, and South again become the Western Province. Superior General wanted just one US province but the apostolic ministries and basic culture/theology differences between the Eastern and Western provinces is just too great at this time.

    Two years ago, the merger of the three west provinces was held up because of the LA diocese sex abuse settlement that included the Vincentian western province. That province also had the most accused pedophile priests/brothers. The Midwest and Southern provinces have extensive financial wealth and the Midwest has DePaul University. Lawyers worked for more than a year to separate these provinces until the settlement was announced.

    What I do know is that each province went through an extensive process of investigating every personnel file dating back to the 1950′s using outside legal counsel. For the provincials, this was a huge time consuming task – basically 3 days a week spent on this. They appointed separate committees to interview victims, priests, etc. to determine liability, steps to isolate accused pedophiles, etc. Wonder if the Jesuit provinces did the same? Also, the Black Pope was just in the California province – would imagine that he, at least, has been consulted on the Oregon province situation.

    All of these are legal steps. My frustration is with the focus on legalities and not the victims. The provincial statement left much to be desired in terms of expressing support for the victims – it read like a legal document.

  9. For an understanding of the real reasons dioceses and religious orders file bankruptcy, see Tom Doyle and Richard Sipe’s account at

    http://www.richardsipe.com/Dialogue/Dialogue-11-2007-06-12.html.

    It’s not really about money, but hiding evidence by keeping documents secret, keeping bishops off the stand forced to testify under oath, and stopping discovery in civil cases. It is instructive how close bankruptcy filings come to court dates.

    As to financial disaster, it’s amazing how many millions can really be found to keep bishops out of court. Pay whatever is necessary to forestall that eventuality.

    In case anyone fails to appreciate the depths of duplicity bishops will exhibit, here are a few examples from San Diego, which “had filed for Chapter 11 bankruptcy protection on Feb. 27, the day before the first of roughly 150 trials was due to begin…

    She (Judge Louise DeCarl Adler) called the diocese’s accounting system “Byzantine” and its disclosures “disingenuous.” She threatened to hold several officials – including Bishop Robert Brom – in contempt of court… Looking back, Adler is convinced the diocese should never have filed for bankruptcy as a way of coping with the sexual abuse claims.”

  10. Is it worth pointing out the corruption amongst the hierarchy, whether through VOTF or elsewhere? Most everyone is indeed tired of the story, and just wants to move on. I wonder at times if all the work yields anything. But the substance of the research is so compelling.

    Read former LA Times religion reporter William Lobdell’s new book about the lies he was told by priests and bishops to cover up. Losing My Religion: How I Lost My Faith Reporting on Religion in America-and Found Unexpected Peace

    Here is my own compilation from the NH AG investigation of the Diocese of Manchester http://votf.org/Survivor_Support/truth_list.html : bishops says one thing, AG finds another. Are hierarchs constitutionally incapable (or ontologically incapable – does the humor comes through?) of speaking the plain simple truth?

    After a while you can get so sickened by corruption and lies, and the passivity of the laity about both, that one is simply numbed. Meanwhile survivors are left bleeding as checks are distributed, while the spin cycle hums at chanceries. “Bless me Father, for mistakes were made.”

    But in the end, silence is not an option. At least there will be a record on http://www.BishopAccountability.org , if nothing else. We in VOTF survivor support will fail in the near term, but continue to call to account. You won’t get resignations or removal, but the truth must still matter.

    For some relief, it does my heart good periodically to reread correspondence between McCormack and Jim Farrell when we filed the canon case against him and auxiliary Francis Christian. Enjoy the spin, counter spin, if you have the chance.
    http://www.nhcatholics.org/Correspondence%20Nov2003-Mar2004.pdf p. 5-8 of 10, http://www.nhcatholics.org/Correspondence%20Mar2004-Apr2004.pdf p.2-4

  11. Thanks, Carolyn, you remind us of the real reason to declare bankruptcy. Mr. Page – records indicate that Jesuits came from nine different US provinces to serve in Alaska in addition – 3 provinces outside of the US.
    You may be correct legally about the separation of provinces. The Vincentians of the West Province actually had roughly 50% of their pedophiles come from their province in Portugal; yet, it was the US West Province that footed the settlement costs.

  12. Thank you, Mr.De Haas;

    I have a tendecy to write too late at night, and thus risk being unclear. I in no way wanted to suggest that some Jesuits from other provinces were not engaged in these heinous deeds, and that their provinces should escape involvement in the “compensation,” which, of course, can never be adequate in view of the lasting devastation experienced by the victims. I intended merely to note that the SJ provinces in the US are separately incorporated, and have been so for long decades preceding the coming to light of these horrible crimes. Whether legally bound or not, I hope that other provinces involved will see their duty to contribute to a just settlement.

  13. The Unholy Cat is out of the Holy Bag.
    Now we all know why America, the magazine, has said not a word about the slaughter in Gaza.
    It is called the Reason of State argument which allows the Jesuits to allow the “lesser evil.”
    The killing of at least 410 children by bombs and tank shells is the lesser evil !
    One of the benefits of being a theologian is that you can always find a apt reason…. but maybe not a good reason.
    Is it not amazing that they all seem to agree with the Party Platform or at least after the Trance Dancing and Afternoon Prayers?

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