Spokane diocese settles lawsuit against law firm that handled bankruptcy
January 26, 2015
The Diocese of Spokane, Washington, has reached an out-of-court settlement with the law firm that represented the diocese in bankruptcy proceedings.
The diocese had brought a malpractice suit against the firm of Paine Hamblen, charging that the firm failed to secure the interests of the diocese by setting up a $1 million fund to pay settlements to sex-abuse victims. That fund was soon exhausted, prompting victims to file claims against the parishes of the diocese. In December, a bankruptcy-court judge ruled that the lawsuit should go to trial.
In reaching an agreement, the diocese and the law firm issued a joint statement, noting that the accord “does not constitute an admission of wrongdoing by either side.” The terms of the agreement were not made public.
For all current news, visit our News home page.
- Law firm, diocese reach settlement (Spokesman)
- Malpractice suit brought by Spokane diocese against law firm will go to trial (CWN, 12/19/14)
All comments are moderated. To lighten our editing burden, only current donors are allowed to Sound Off. If you are a donor, log in to see the comment form; otherwise please support our work, and Sound Off!