Judge Tosses Settlement Plan In Spokane Diocese Case

Law360, New York (May 19, 2006, 12:00 AM EDT) -- A federal judge has rejected a $45.7 million proposed settlement agreement between the bankrupt Catholic Diocese of Spokane and 75 sex abuse victims, strongly recommending that the main players in the increasingly thorny legal wrangling enter into mediation.

Judge Patricia Williams, who is overseeing the Chapter 11 proceedings, handed down the rejection in a sparsely worded order this week, stating only that the diocese’s motion to approve the settlement offer, filed in mid-March, was denied.

Judge Williams has criticized the proposed deal in the past, saying...
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