Spokane Diocese To Pay $48M In Sex Suits

The Spokane Catholic Diocese has agreed to pay at least $48 million to people molested by priests as a part of a deal to emerge from bankruptcy, a federal mediator announced Thursday.

Federal Bankruptcy Judge Gregg W. Zive in Reno, Nev., said the settlement also includes non-economic provisions that will provide survivors "with some measure of closure and allow them to move forward and continue the healing process."

The settlement also "provides a mechanism for the payment of future claims," Zive said.

The proposed reorganization plan was filed in federal bankruptcy court in Spokane. It still must be approved by victims and another bankruptcy judge.

The settlement would be financed by $20 million from six insurance carriers; another $18 million from the sale of the bishop's office building and other assets and contributions from other Catholic entities; and $10 million from the diocese's 82 parishes, Zive said.

Church spokesman Eric Meisfjord said the diocese would have no immediate comment.

The diocese serves about 90,000 Catholics in eastern Washington.