Seattle ? Handing a major victory to victims of sexual abuse by priests, a federal bankruptcy judge said Friday that churches, parochial schools and other assets belonged to a church diocese – not individual parishes or trusts – and thus could be liquidated if necessary to pay victims.

The ruling applied specifically to the bankrupt Catholic diocese in Spokane, which is facing settlement of lawsuits brought by 58 people in the eastern Washington diocese who say they were sexually abused by priests.

The diocese vowed an immediate and vigorous appeal. But if the ruling is upheld, it could have broad implications for other dioceses staggering under the weight of sexual-abuse lawsuits, as it undercuts the Catholic church’s central claim, reiterated in a Vatican finding earlier this month, that most assets in individual dioceses cannot be put up for sale to settle claims.

The Vatican said it considered investments and real estate such as churches and schools to belong to individual parishes.