Selling parishes to settle lawsuits: Will L.A. be Boston West?
News that the Archdiocese of Los Angeles will soon pay $60 million to settle 45 clergy sex abuse lawsuits led to widespread speculation that the archdiocese will be forced to sell land holdings to cover an estimated 500+ suits that are still pending. According to the Los Angeles Times the archdiocese owns at least 1,600 properties with an estimated value of $4 billion. While most of the properties are churches and schools, the archdiocese also owns oil wells, farm land, parking lots and commercial buildings.
CTA/USA board member Tom Honore was quoted in the L.A. Times article: “Before schools, parking lots should go,” he said. “I am very concerned. Families and communities are built around parishes.”
The archdiocese could be forced to pay $500 million or more to settle the rest of the suits, making this the costliest U.S. settlement to date. While the archdiocesan officials insist insurers should cover most of the cost, the insurance companies are saying the church should bear the burden. Even though Cardinal Roger Mahony has said the goal is to protect parishes, many people fear the settlements will impact churches and schools. Most believe archdiocesan programs are in jeopardy. They point to a recent $4.2 million budget deficit in 2002 that resulted in closing ministries to the disabled, students, and minorities.