A diocese in bankruptcy.

Byline: The Register-Guard

The Archdiocese of Portland took a high-risk gamble Tuesday by filing for bankruptcy protection, an unprecedented move that reflects the desperation of an archdiocese overwhelmed by sexual abuse lawsuits that already have cost it more than $53 million in claims.

Lawyers for alleged abuse victims immediately accused the church of using the filing to halt civil trials set to begin this week, thus avoiding embarrassing disclosures about how the church covered up crimes of its priests for decades.

But that seems unlikely, given the adverse publicity that already has surfaced about the abuses in Oregon and elsewhere. But it's even more unlikely that the church would make such a move for the sake of public relations, when Chapter 11 will open the church to extraordinary financial scrutiny and put diocesan operations under the supervision of a secular court.

Portland is the first of the 195 U.S. dioceses to seek this type of financial protection against potential sexual abuse claims. It's unlikely to be the last. The diocese of Tucson, Ariz., is expected to seek bankruptcy protection by summer's end, and others will be watching what happens in Oregon.

Chapter 11 filings are rare among religious organizations. It's easy to understand why. The archdiocese will be required to open its books - something the intensely private church has never been willing to do in the past. The filing could also result in the church temporarily forsaking control of charitable and religious works, a nearly unthinkable prospect for a church that is known for jealously guarding its authority.

The Portland case could raise complex church-state issues. What if creditors seek to replace church administrators - a common move in corporate bankruptcy cases? Could a bankruptcy judge order high-level archdiocesan officials, even the archbishop himself, to be replaced?

Then there's the matter of determining the extent of the archdiocese's assets. Under church canons, archbishops cannot seize parish properties or tap assets held in charitable trusts. But attorneys for plaintiffs in pending Portland abuse cases have made it clear they will argue that parishes and schools, as well as charities and trusts, should be regarded as diocesan assets and should be used, if necessary, to pay settlements.

The court's ruling on this matter has far-reaching ramifications for the church, for abuse victims seeking damages and for the church's membership. Portland Archbishop John G. Vlazny argues that the church has few assets left to satisfy claims - "The pot of gold is pretty much empty right now," he says. But if the court decides that the archdiocese owns everything in its domain, including parishes and schools, the church could be worth as much as a half billion dollars by some estimates.

After Vlazny's announcement, archdiocese officials emphasized church operations will continue as usual. Youngsters will continue to attend Catholic schools. Worshippers will be in the pews on Sundays. Volunteers will continue to do their good works.

But that's not quite accurate. A shadow remains over the Portland diocese and others across the nation, one that will only be cleared when victims of abuse receive justice, and when the church shows beyond any doubt that it has learned from its failings.

Hopefully, Tuesday's bankruptcy filing will help provide much-needed healing - and resolution - for both victims and the church.