News that Catholic Diocese of Wilmington and religious orders paid a large sum to settle claims of victims of sexual abuse by priests was a big story a while back.
Little has been written since the final settlement was announced in 2011. Recently, Philadelphia Inquirer columnist Joseph DiStefano decided to take a look at the settlement and in his Deals column found a third of the $110 million went to lawyers (the customary percentage, but a whopping amount to most of us). The diocese’s share of the settlement was $77.4 million.
But DiStefano, who sends his kids to Catholic schools, did not seem to be out to bash lawyers. Instead, he offered a cautionary tale to Pennsylvania and other states considering legislation that would extend the statute of limitations on abuse cases.
DiStefano reported the diocese, while filing a Chapter 11 bankruptcy proceedings, was able to come up with money, by, among other things, tapping the assets of a foundation started by Jacob Raskob, a DuPont executive who went to build the Empire State Building.
The moves are affecting the diocese, with one school serving children from lower income families being closed and proceeds from the Raskob fund no longer available to fix roofs and do other work around the diocese.
One lawyer for the victims told DiStefano the value of real estate assets provides a cushion. Not so fast, DiStefano said. In the current market, the value of assets on the books is overstated, especially if money had to be raised rapidly.
In the end, the villain may be the American judicial system. The diocese needed to pay a high price for the actions of priests . But there is something wrong when money is the only punishment.
