Diocese to pay $198M to settle claims

? The Roman Catholic Diocese of San Diego agreed Friday to pay nearly $200 million to 144 people who were sexually abused by clergy members, the second-largest payment since the U.S. abuse scandal erupted five years ago.

The $198.1 million agreement capped more than four years of negotiations in state and federal courts and came six months after the diocese filed for bankruptcy protection just hours before the first of 42 lawsuits was scheduled for trial.

Victims expressed relief that a settlement was reached – but also anger that it took so long.

“They knew all along that I’d been molested, so to put me through this is unconscionable,” said Michael Bang, of Atlanta.

The diocese had sought to protect its assets in bankruptcy court, but quickly found it a rough venue before a judge who criticized the church for bookkeeping practices, undervaluing real estate holdings and failing to disclose facts.

U.S. Bankruptcy Judge Louise DeCarl Adler recently threatened to dismiss the case if an agreement was not struck by Tuesday in a last-ditch round of talks before a federal magistrate judge. Several victims also participated in the negotiations.

The San Diego diocese initially offered about $95 million to settle the claims. The victims were seeking about $200 million.

The church wanted to settle the lawsuits fairly while also maintaining programs and services, Bishop Robert Brom said in a news release.

“We pray that this settlement will bring some closure and healing to the years of suffering experienced by these victims,” he said.

The diocese will withdraw its bankruptcy filing as part of the agreement, Brom said.

At a news conference, the bishop apologized to victims.

“I’m very, very sorry for the suffering we have caused them, and I pray they will walk with God for a renewed life,” he said.

The San Diego diocese will pay $153 million to settle 111 cases involving its own clergy and $30 million for 22 cases involving members of Catholic orders, church officials said. Insurance will pay about $75 million, and the rest will be raised through land sales and loans.

The Diocese of San Bernardino, a defendant in some of the cases, will pay $15 million to settle the other 11 claims, all for abuse that occurred after 1978, when San Bernardino split from the San Diego diocese.