Judge OKs diocese plan to settle with victims

By ERIN JORDAN • REGISTER IOWA CITY BUREAU • April 3, 2008

Davenport, Ia. — A federal bankruptcy judge on Wednesday approved a disclosure statement that will be sent to 162 victims of sexual abuse by priests in the Catholic Diocese of Davenport.

The decision by Judge Lee Jackwig bodes well for overall approval of a $37 million settlement, attorneys said.

"If the plan was patently unconfirmable, she would not have approved the disclosure statement," Hamid Rafatjoo, a Los Angeles attorney for a committee that represents victims, said after a hearing Wednesday.

The reorganization plan will be discussed at a hearing April 30.

The disclosure statement and reorganization plan will likely be mailed to victims this week, said Richard Davidson, attorney for the diocese. Victims will have until April 23 to vote on the plan, which outlines terms of the settlement and 17 nonmonetary steps the diocese would take to restore confidence and prevent further abuse.

Victims' attorneys will host two informational sessions in the Quad Cities to help abuse victims understand the plan, Rafatjoo said.

Jackwig, who rejected the disclosure statement at a hearing last month, asked attorneys Wednesday why only four of the diocese's 83 parishes agreed to contribute to the settlement. The four - St. Mary's of Iowa City, Sacred Heart Cathedral and St. Anthony's of Davenport, and Our Lady of Lourdes in Bettendorf - will contribute a combined $2.9 million.

Davidson said the churches have the most assets and the largest number of claims of clergy abuse. Other churches in the diocese will contribute by selling back insurance policies to Travelers Insurance, a demand of the insurance company as part of the global settlement, Davidson said.

Mike Udhe, co-chairman of the victims committee, said he was pleased with Jackwig's decision to move forward.

"The faster we can get this approved and behind us, the better it will be for the 162 people involved," he said. The diocese filed for bankruptcy in October 2006.

Reporter Erin Jordan can be reached at (319) 351-6527 or ejordan@dmreg.com