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(COMTEX) B: Diocese Says It Can't Use Parishes to Pay ( AP Online )

SPOKANE, Wash., May 27, 2005 (AP Online via COMTEX) -- The Roman Catholic
Diocese of Spokane said Friday it does not own 81 parish churches and nearly 100
other assets - and cannot use them to pay alleged victims of sexual abuse by
priests.

The diocese filed documents in U.S. Bankruptcy Court challenging the assertion
by alleged victims that Bishop William Skylstad owns the 81 churches, 16
schools, one high school and 79 other Catholic assets in the sprawling region.

The diocese, which faces lawsuits filed by 58 alleged victims, filed for Chapter
11 bankruptcy protection last December, listing assets of $11.1 million and
liabilities of $81.3 million - the vast majority being sexual abuse claims.

The diocese has asked U.S. Bankruptcy Judge Patricia Williams to rule that
Skylstad only controls the roughly $11 million worth of assets that belong
specifically to the diocese.

"We are trying to resolve this Chapter 11 in a way that compensates those harmed
by the church in the past," said Shaun Cross, an attorney for the diocese.

Skylstad, who is president of the U.S. Conference of Catholic Bishops, cannot
sell assets he doesn't own, and the church must be allowed to continue its
religious activities, Cross said.

The diocese believes state, federal and canon law is clear that the bishop holds
in trust title to parishes and some other assets, but does not actually own them
- a system the church has operated under for 2000 years, Cross said.

In April, the plaintiffs asked the judge to rule the 81 parish churches in
Eastern Washington and other Catholic entities were owned by the bishop and thus
available to settle the claims.

"It's time for this bishop to do the right thing, face his problems and settle
these claims in a responsible manner," said attorney Mike Pfau. "It's another
example of their avoiding responsibility."

A hearing is scheduled for June 27.

Catholic dioceses in Portland, Ore., and Tucson, Ariz., also filed for
bankruptcy protection in the wake of a nationwide scandal involving sexual abuse
by clergymen. The issue of who owns parish buildings has not been settled in
those cases.

By NICHOLAS K. GERANIOS
Associated Press Writer

Copyright 2005 Associated Press, All rights reserved

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