Judge approves settlement for clergy abuse victims in Iowa

DES MOINES, Iowa—A bankruptcy judge on Wednesday approved a $37 million settlement between the Roman Catholic Diocese of Davenport and more than 150 people who say they were sexually abused by its priests.

Judge Lee Jackwig's approval of the diocese's reorganization plan allows the diocese to start paying the settlement money, which includes proceeds from the sale of some diocese property.

The reorganization plan outlines terms of the settlement and the diocese's efforts to prevent future abuse.

"This is not an issue to put behind us," said the Most Rev. Martin Amos, the diocese's bishop. "We have gone through a learning process that now promotes transparency over secrecy and justice over the threat of scandal. The lessons have been difficult to learn."

The diocese filed for bankruptcy in October 2006, saying it did not have the money to settle the claims stemming from its decades-long clergy sexual abuse scandal.

The Davenport diocese and creditors reached a settlement in November that calls for the diocese to pay $17.5 million, with the rest coming from its insurance carrier, Travelers Cos. of St. Paul., Minn. The diocese had already paid nearly $10.7 million to 45 other victims since 2004.

Craig Levien, an attorney for many of the accusers, said he was pleased with the settlement, "but the stain of the (diocese's) wrongdoing will not be as easily washed away."

Davenport is one of six Roman Catholic dioceses in the United States to file for bankruptcy due to sexual abuse scandals. The others are based in Portland, Ore.; Spokane, Wash.; Tucson, Ariz.; San Diego; and Fairbanks, Alaska.

The Davenport diocese serves about 105,000 parishioners in 22 counties in southeastern Iowa.