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Santa Fe Archdiocese reaches $121.5 million tentative sex abuse settlement

The Santa Fe New Mexican - 5/18/2022

May 18—The Archdiocese of Santa Fe tentatively reached a $121.5 million agreement Tuesday in a bankruptcy case involving at least 375 people who accused priests of sexual abuse.

Attorneys representing accusers, the archdiocese and insurance companies told U.S. Bankruptcy Judge David Thuma they believe they have reached a settlement. But the accusers still must approve the deal, and it's also not clear whether Catholic orders such as the Servants of the Paraclete will add money to the sum.

The archdiocese's case has shambled along since the December 2018 filing for Chapter 11 bankruptcy. The long, grinding road to the tentative resolution was reached with the aid of the third mediator in the case, Paul Van Osselaer of Austin, Texas, and the perseverance of hundreds of accusers, attorneys said.

James Stang, a Los Angeles attorney who represented a key nine-member committee of accusers, credited the panel for its contribution.

"Without their support," he said, "we would not be able to get to where we are today. ... And talk about patience."

In a written statement, Archbishop of Santa Fe John Wester said: "The Church takes very seriously its responsibility to see the survivors of sexual abuse are justly compensated for the suffering they have endured. It is our hope that this settlement is the next step in the healing process of those who have been harmed."

A third-party expert will determine how to allocate the money among the accusers. The money could be distributed equally or based on the duration and severity of the abuse, among other things.

Tom Walker, an Albuquerque attorney for the archdiocese, said administrative expenses will not be taken from the $121.5 million. He said if all goes smoothly, the money may be distributed in September or October.

Thuma said he was pleased the case has come this far. "Great job, everyone who's been involved," he said during the settlement discussion, which was attended both in person and by telephone. "It was a complicated case. ... So I have a feeling this is a good result for everybody."

Nevertheless, details must be tied up. A vote of accusers will be taken, and Thuma will determine if that vote was affirmation enough to finalize the deal.

Ford Elsaesser, an attorney for the archdiocese, said the mediator played a role in this tentative settlement.

"I think we all owe a debt of gratitude to Paul Van Osselaer," Elsaesser said.

One of the attorneys for many accusers, Levi Monagle of Albuquerque, said after the meeting, "This is the announcement of a plan that still needs to be voted on" by the claimants. "If they're satisfied with it, I'm satisfied with it."

Besides the 375, Monagle said, there are additional accusers who filed their complaints late or have cases with viability yet to be determined.

Suzanne Cully, one of the accusers from the Albuquerque area, said Tuesday afternoon she doesn't want the Servants of the Paraclete to "hitch a ride" on the archdiocese's Chapter 11 bankruptcy case. The Catholic order should stand on its own and be judged separately, Cully said of that and any other orders deserving blame for pedophilia.

The Servants of the Paraclete had a rehabilitation center beginning in 1947 in Jemez Springs that eventually tried to treat many clergy members guilty of sexually abusing children. Some of those priests were released for weekends or longer periods to serve congregations, and some continued to perpetrate pedophilia.

Thus, Monagle and many others have said, New Mexico had an especially severe problem with the clergy sexual abuse that affected parishes around the country and around the world.

Cully said if the Servants of the Paraclete, who now are based in Missouri, are simply allowed to piggyback onto the settlement with a donation, she probably won't vote for the agreement.

"I want them to have to face the music," said Cully, who said she was sexually abused by a priest when she was 8. Cully, now 65, said she wants "everybody exposed who's ever had any part in protecting these pedophiles."

One element of the tentative agreement is the creation of an archive of information about the history of abuse and other elements of the tragedy in the geographic area of the archdiocese.

The Archdiocese of Santa Fe filed for Chapter 11 bankruptcy 3 1/2 years ago and has been trying to raise money to work out a settlement with the people who allege sexual abuse by Catholic clergy. The archdiocese also became entangled in conflict with some of its insurers over how much they should pay. That situation apparently has been resolved. Insurance is expected to provide a large chunk of the sum for the accusers.

The archdiocese has said it attempted to verify the accusations and therefore is fairly certain most or all involved in this case are victims of clergy abuse.

Close to 30 dioceses and Catholic orders have filed for Chapter 11 bankruptcy as a way to make reparations. The Catholic Diocese of Gallup settled in 2016 with about 55 accusers for a total of about $20 million.

Besides insurance money, the Archdiocese of Santa Fe has sold individual pieces of property, bundled small vacant properties and sold them at two auctions, and collected donations.

Daniel Fasy, a Seattle attorney who represents many victims, said this is "one small step toward closure" and justice.

"We represented people that were in their 80s and some that were in their early 30s," Fasy said. "No amount of money can take away what happened to the abuse survivors. ... My hat is off to the courageous survivors I've been able to work with."

Fasy said victims "spoke truth to power."

Suzanne Cully said she isn't necessarily finished fighting.

"I do feel vindicated, but if there's more I can do to break open this whole history of sexual abuse [I will]," she said. "It's been a real roller coaster, I'll tell you."

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