The law firm of Paine Hamblen and the Catholic Diocese of Spokane has reached a settlement in the bankruptcy malpractice case regarding the law firms’ multimillion-dollar representation of the Diocese.
The settlement, signed Friday, closes the lawsuit, which was first filed in December 2004.
By mutual agreement, the terms of the settlement are confidential. According to the Diocese, the settlement does not constitute an admission of wrong doing by either side; instead, “is a resolution of differences in an amicable manner which allows the parties to move forward with the important work that each conducts in the service of the common good.”
According to The Spokesman-Review, the malpractice issues began several years ago as the leadership of the diocese changed after the bankruptcy. Incoming Bishop Blase Cupich – who has since been appointed Archbishop of Chicago – reviewed the bankruptcy and determined that Paine Hamblen mishandled important aspects of the case, including underestimating how many more victims of clergy sex abuse would continue to come forward after the case was closed. A central tenet of bankruptcy was to collect all outstanding financial claims and attempt to reach acceptable payment terms.
The malpractice claim was headed for a February trial.
