Law Aides Balking at Geoghan Costs
Settlement seen as risk to finances
By Stephen Kurkjian and Walter V. Robinson, Globe Staff, 4/30/2002
The three members and perhaps others contend that the
cost of the agreement - between $15 million and $30 million - is too high given
the church's financial condition and the prospect that more people will file
claims. Because the committee is advisory, however, the dissent
of some or even a majority of its members may not deter Law from approving the
settlement, which he publicly endorsed when it was tentatively agreed to in
March. Last week, a spokesman said Law still intended to sign the
agreement. As an alternative to the costly settlement for the
Geoghan victims, some of the committee members are recommending that the
archdiocese establish a fund that would pay for the settlements of all
individuals who have been abused by priests in the Boston Archdiocese, and not
just Geoghan victims, members said. But the maximum amount that would be offered to
individual victims would be $200,000, far less than the $400,000 or more that
many of the Geoghan victims are expected to receive. Church advisers are fearful that without a reasonable cap
for damage awards, the archdiocese could find itself in perilous fiscal
condition. Since the scandal first broke in January, about 500 new alleged
victims of priests have retained lawyers in just four law firms, according to
figures obtained by the Globe. Not counting the new victims who are making claims, the
archdiocese was already expected to pay out $70 million to $80 million to settle
sexual abuse claims since 1992. That amount includes the cost of the Geoghan
settlements, about 40 other claims that were pending, and hundreds of other
cases that were settled, mostly in secret, over the last several years. The cost
of settling with new claimants could be catastrophic for the church, according
to these advisers. Rejecting the Geoghan settlements would present a public
relations nightmare for Law. When the terms were announced on March 12, Law said
in a statement that ''the resolution of those cases will continue the healing
process. This settlement is an important closure for these victims who have long
endured the damage done to them by John Geoghan.'' Despite the concerns, Mitchell Garabedian, the lawyer for
the Geoghan victims, said the cardinal's lawyer, Wilson Rogers Jr., has assured
him that arbitration sessions to set specific damage awards will start late next
week. For that step to take place, he noted, Law and all the
other defendants in the lawsuits have to sign the agreement. As of last week,
Law had not signed it. Garabedian noted that all 86 of his clients have signed
the agreement, with the understanding that Law and the other church defendants
would also sign. ''For the defendants not to enter into a settlement
agreement would make it difficult for the archdiocese to ever rebuild any sense
of trust with any victim of abuse by a priest,'' he said. The Rev. Christopher J. Coyne, a spokesman for the
cardinal, said last week that as far as he knows, the archdiocese plans to go
ahead with the settlement as it was agreed to. ''That means he [Law] intends to
sign it,'' Coyne said. Donna Morrissey, a spokeswoman for Law, did not return
phone calls last night about Thursday's meeting. Whether the committee, which includes several Boston
business leaders, has the power to overrule the cardinal is doubtful. Several
members, who asked that they not be identified by name, said they believe that
the committee's chief responsibility is to offer business and financial advice
to the cardinal. Their only legal role is to sign off on any transactions that
involve the mortgaging or sale of church real estate. But they said they are
uncertain of the limits of their role since the committee has never before faced
such a substantial fiscal question. One lawyer familiar with the committee's work said he
believes that the panel is required under archdiocesan rules to approve all
payments of more than $1 million. The agenda for Thursday's meeting at the chancery
includes a discussion on how the archdiocese would pay for the Geoghan
settlements. Law is expected to attend the meeting and participate in the
discussion, as are Archdiocese Chancellor David W. Smith and Rogers, Law's
lawyer. The archdiocese has refused to detail how it intends to
pay for the Geoghan settlement. However, according to lawyers familiar with the
negotiations, the archdiocese would deposit $7.5 million into a bank account to
pay for the first wave of settlements. A mediator, Commonwealth Mediation, would
set the amount of each award, with the total to be between $15 million and $30
million. Under the tentative agreement, the 86 victims - 70
victims of abuse and 16 relatives - would receive payments between $232,000 and
$348,000. But according to court files, 36 of the victims would receive either
$10,000 or $75,000 each. That means the remaining 50 victims may receive
payments that average $400,000. Ross Kerber of the Globe Staff contributed to this
report. Stephen Kurkjian's e-mail address is kurkjian@globe.com.
Walter V. Robinson's e-mail address is wrobinson@globe.com.
t least three
members of the Archdiocese of Boston's 15-member financial advisory committee
are expected to urge Cardinal Bernard F. Law on Thursday to abandon the
multimillion-dollar settlement the church has tentatively agreed to pay to 86
victims of defrocked priest John J. Geoghan.
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This story ran on page A1 of
the Boston Globe on 4/30/2002.
© Copyright 2002 Globe Newspaper Company.