Catholic parishioners in the Archdiocese of Portland will receive notification that they are part of a class action lawsuit in the Archdiocese's bankruptcy proceedings. On July 22, 2005, Bankruptcy Court certified a class of defendants of parishioners and donors.
The issue is whether parish churches, schools and certain funds, defined as the Disputed Property, are available to pay claims against the Debtor. The Debtor contends those assets and funds are not available to pay claims.
People that may be affected by the bankruptcy case and the lawsuit include any parishoner who made gifts, donations, and/or tithes to or for the benefit of any of the 124 parishes located within the territory of the Archdiocese, which is west of the Cascade Mountains in Oregon.
The lawsuit has one defendant class composed of two sub-classes. One sub-class includes all parishes with their schools and missions. The second sub-class consists of parishioners and donors. Three Catholic high schools: Central Catholic in Portland, Regis in Stayton, and Marist in Eugene are not named in this class action, but the schools are part of the property dispute litigation. Archbishop John G. Vlazny wrote to parishioners in June, "We have steadfastly maintained that parish property and parish money belong to the individual parishes and are not available to pay creditors of the Archdiocese. After many months, it has been determined that parishes, along with parishioners, will have a voice in the proceedings as part of a class that is to be certified."