In what US bankruptcy judge Terry L. Myers described as a “unique achievement” was a bankruptcy and reorganization plan for the Diocese of Helena, Mont.

It will provide $ 21 million to compensate more than 360 sexual abuse complainants. Payouts, averaging $ 40,000 per plaintiff, are slated to begin in April, diocese attorneys said.

In fact, in the three and a half years since the original lawsuit was filed, less than three hours have been spent in court, according to lawyers involved in the case.

The settlement approved by Myers on March 4 in a trial in Coeur d’Alene, Idaho, officially went into effect Thursday after a mandatory two-week wait for potential appeals.

The plan, which also includes the restructuring of approximately $ 17 million in internal diocesan debt, “received almost unanimous approval in the votes of victims of sexual abuse and other believers, and Judge Myers’ confirmation warrant addresses any outstanding sexual abuse claims the diocese of Helena, “reads a press release from the diocese.

With the confirmation of the plan, “claims against the western province of Ursuline, which took part in the reorganization process and made a significant contribution to the overall settlement, will also be settled,” says the announcement.

Part of the agreement was a provision of $ 920,000 for potential future claims.

The settlement includes non-supervisory requirements aimed at preventing future child abuse, such as intensive background checks and screening of potential seminarians, and publishing the names of all known current and past abusers listed in abuse claims or the lawsuits.

The trial has been closely monitored across the country by litigators, bankruptcy courts, victim groups, dioceses and archdioceses, and the U.S. Bishops’ Conference, according to lawyers appointed by NCR.

Mike Patterson, chief attorney for the Diocese of Helena, described the negotiations that led to the settlement as “a process of reconciliation” characterized by the diocese’s open exchange of financial and personnel records through “compassionate and respectful” treatment of plaintiffs sexual abuse, and through the open exchange of information between all parties.

“It’s not just us who talk about how fairly and efficiently the settlement was reached,” Patterson said, “we have been contacted by many dioceses and bishops for guidance on how to deal with this type of litigation,” and by the General Council of the Bishops’ Conference.

Attorney Ford Elsaesser, who handled the details of the diocese’s bankruptcy, said Patterson and Helena, Bishop George Thomas, insisted “the dispute be placed in an arbitration block from the start and fully disclosed.”

“I’ve been doing Chapter 11 for almost 33 years” Alsatian said, “And that was remarkable. I’ve never felt better with chapter 11 going from start to finish than this one.”

Patterson agreed. “This has certainly been the smoothest sexual abuse process I have been involved in, and that includes it [cases involving] the Mormons, Boy Scouts, school districts, other churches and public institutions. “

“All sides,” added Patterson, “have realized that the scorched earth attitude is not working. It does not benefit the victims or the diocese, it leads to enormous hostility and distrust and emasculates the transparency that should prevail. “

Elsaesser, who teaches bankruptcy law at the University of Idaho and St. John’s University, said he plans to “incorporate much of what we learned in the Helena Process” into courses.

Most of the diocese’s stake, about $ 14.4 million, is covered by insurance. The diocese will be responsible for approximately $ 2.6 million, part of that from the sale of its youth camp and retreat center to an independent foundation with close ties to the diocese, a diocesan official said. This means that the system can continue to be operated.

The Ursuline Province will contribute approximately $ 4.5 million.

Elsaesser said it was critical that a party seeking Chapter 11 protection “can demonstrate that not only can they pay plaintiffs the agreed payment, but that they can survive and move on”.

The Diocese of Helena is “in a reasonably good financial position from the process,” said Elsaesser Wall Street Journal.

The diocese enlisted the help of an “insurance archaeologist” to investigate what insurance carriers and coverage might have been in place when the majority of the abuse incidents occurred 30 to 60 years ago, Elsaesser said. Ultimately, seven insurers were involved in the settlement.

Elsaesser and Patterson and most of the plaintiffs ‘attorneys praised Thomas’ leadership and pastoral approach.

In the testimony at the hearing on March 4, Thomas expressed “deep sadness about what survivors of the victims have experienced in recent decades” and praised the “enormous courage” they showed to “go ahead”.

He said he wanted “to put on record that the survivors of the victims in our diocese of Helena are believed and deeply respected”.

At a meeting with clergymen who were victims of sexual abuse, Thomas said NCR, “The pain you experienced is not yesterday, it is in the present. The Church must recognize that.”

Thomas said, “When I was first made aware of the cases that were coming our way, my first instinct to fight was that we would fight this thing, circling the wagons. But as I talked and prayed with priests and lawyers and victims, for wisdom and guidance it became clear that belligerence was not the key. “

The bishop testified that he “really opposed the idea of ​​a protracted, bitter legal battle to be effective.”

In court, Thomas Milton praised Datsopoulos and Molly Howard, attorneys for most of the plaintiffs, for “being instrumental in creating a consensus model. This has been a collaborative venture from the beginning, and for me it has” led to wherever to this day there is the possibility of a healing and mediated process that will both conclude today and influence the healing process for the future. “

Thomas said in court and in an interview that “complacency is a danger” and that the church “needs to redouble its education on prevention and other efforts to combat future sexual abuse.”

Elsaesser described the legal action taken as “the exact opposite of what is going on in Milwaukee”.

The Milwaukee Archdiocese’s controversial sexual abuse trial was also mentioned during the March 4 hearing.

James Stang, who represented the Committee of Uninsured Creditors, said, “It’s no secret that the Archdiocese of Milwaukee is where we are [also] Representative of the creditors’ committee, goes into the fourth year with a very high administrative burden and no resolution. “

Stang described church cases he was involved in, in which church officials tried to “obstruct, delay and defraud” abuse victims and believers.

Stang also spoke highly of Helena and Ursuline’s lawyers. While the media and some church officials “speak of ‘greedy trial lawyers,'” he said, “If it weren’t for these lawyers who all work in emergencies, the crimes that have been hidden in the dark for decades would have remained in the dark.”

In a remark at the end of the Coeur d’Alene session, Judge Myers said, “Mr. Stang was absolutely right when he stated that this case contrasts with many other cases across the country of Chapter 11 bankruptcies.”

He described the overall process as “an enlightened, careful, talented endeavor to find an optimal solution for all those involved”.

[Dan Morris Young is NCR West Coast correspondent. His email address is [email protected]]