Settlement in Alaska clergy abuse case

FAIRBANKS, Alaska, Nov. 25 (UPI) -- The diocese of Fairbanks, Alaska, reached a $9.8 million settlement regarding allegations of sexual abuse by priests, lawyers involved in the matter said.

Attorney Ken Roosa, who represents 240 victims in the U.S. Bankruptcy Court case against the diocese, said payments to the alleged victims of the Catholic diocese's priests and volunteers could begin in early 2010, the Anchorage (Alaska) Daily News said Tuesday.

"This is clear cut. This is 9.8 million hard dollars, guaranteed money," Roosa said.

The bankruptcy case involves nearly 300 creditors, including the alleged sexual abuse victims. The diocese, formally known as the Catholic Bishop of Northern Alaska, began bankruptcy efforts in March 2008 amid a series of sexual abuse lawsuits.

The terms of the settlement, which would force the diocese to sell pieces of property to gather the necessary funds, must still be approved by U.S. Bankruptcy Judge Donald MacDonald.

Roosa told the Daily News the payouts to creditors as part of the settlement have not been determined and will be decided on an individual basis.