Diocese costs rising in defense against sex abuse allegations

The cost of defending lawsuits against priests sent behind bars for sex offenses keeps rising for the Roman Catholic Diocese of Phoenix.

Since December 2002, when the first of eight priests was indicted after a yearlong investigation, at least 14 lawsuits have been filed against the diocese alleging sexual misconduct.

The latest involves Monsignor Dale Fushek, pastor of St. Timothy Catholic Community in Mesa. On Friday, the Rev. Karl LeClaire became the third priest to plead guilty and to be sentenced for his crimes.

Diocese officials refuse to disclose how much they are paying the private law firms defending the cases, but insist their finances are in good shape.

"The diocesan resources and insurance resources are sufficient to resolve these cases," said Mike Haran, diocesan attorney. Insurance will cover some of the cases, but not all, he added.

In September 2003, Archbishop Michael Sheehan said allegations of sexual abuse of minors by priests had cost the diocese $2.7 million in settlements, legal fees, counseling for victims and other costs.

All of those costs were for cases that were resolved, Haran said.

Only one of the latest rounds of lawsuits has been resolved, and it was in favor of the diocese, according to court records.

"To defend one of these cases could cost well into the low six figures on an individual basis. And sometimes it costs low six figures just to get it to a point where you can settle it," said Ed Novak, the head of the civil litigation unit for Quarles & Brady Streich Lang, a firm that is not involved in any of the lawsuits against the diocese.

Novak said cases involving an allegation, denial and little physical evidence don’t take much prep work.

Legal disputes and the location of witnesses are the major factors that drive up defense costs, he said.

Insurance companies will likely be on the hook for most of the costs, though there is probably a deductible for each case, he said.

Haran said he would not discuss the diocese’s insurance policies because that would be helpful to its legal adversaries.

Court records show all of the cases are in the early stages of litigation and trial dates are more than a year away.

Haran said he will explore the possible defenses and legal issues of each case before deciding which ones to settle.

One could be close. It involves Chandler resident Mark Kennedy, who claims he was molested by the Rev. Patrick Colleary, former pastor of Our Lady of Perpetual Help in Scottsdale.

In a Nov. 4 motion to the court, attorney Lynn Cadigan wrote that the parties had been negotiating for the last month and were hopeful "such discussions will result in settlements."