Spokane Diocese To Appeal Bankruptcy Court Decision That Parishes Are Assets

From Catholic News Service:

Diocese to appeal bankruptcy court decision that parishes are assets

By Catholic News Service

SPOKANE, Wash. (CNS) -- Citing the "national consequences," Bishop William S. Skylstad of Spokane said he will appeal a federal bankruptcy court's ruling that parish properties must be included in the Spokane diocesan assets used to settle millions of dollars in clergy sex abuse claims.

U.S. Bankruptcy Judge Patricia Williams of Spokane ruled Aug. 26 that civil property laws prevail in a bankruptcy proceeding despite any internal church laws that might bar a bishop from full control over parish assets. Diocesan lawyers had argued that in church law parish assets belong to the parish itself, not to its pastor or to the bishop. They said that, while the diocesan bishop was nominally the owner in civil law, even in civil law he only held those properties in trust for the parishes themselves.

[Full story]

My Comments:
See also my post from last night regarding the Catholic League's response to the bankruptcy court decision.