Executor May Pursue Challenge To Assets Left To Legion of Christ

In Chu v. Legion of Christ Inc., (D RI, Jan. 13, 2014), a Rhode Island federal magistrate judge recommended that defendant's motion for summary judgment be denied in a lawsuit claiming that the scandal-ridden Catholic organization, Legion of Christ, used fraud and undue influence to induce college professor Dr. James Boa-Teh Chu to name the Legion as beneficiary of his retirement annuities. The court held that under Rhode Island law the executor of the estate, Chu's son Paul, has standing to bring the suit since if the gift fails the assets would revert to the estate. The court also rejected the claim that the executor lacks standing  because Dr. Chu would have left his assets to another Catholic charity if they were not left to the Legion. The magistrate concluded:

All in all, through this muddle, one thing clearly emerges: the record in this case has more than sufficient evidence from which a fact finder could conclude that, absent the influence of The Legion, Dr. Chu’s beneficiary for some or all of his annuities would not necessarily have been another Catholic charity. Accordingly, I find that there is a genuine fact dispute regarding Dr. Chu’s charitable intent.

Examiner reports on the decision.

UPDATE: The federal district court issued an order on Feb. 26, 2014 adopting the magistrate's report and recommendation. (AP).

Spokane Diocese Suing Its Bankruptcy Lawyers For Malpractice

AP reported on Wednesday that the Catholic Diocese of Spokane has refiled in federal bankruptcy court its bankruptcy malpractice lawsuit against the law firm of Paine Hamblin and two lawyers who were members of the firm. The firm handled the reorganization of the diocese that began with bankruptcy filings in 2004 and ended in 2007 after a $48 million settlement with 175 abuse victims. (See prior posting.)  The malpractice suit seeking return of millions of dollars in legal fees and more millions of dollars in damages was originally filed in 2012, but dismissed on technical grounds. The 2012 suit was described by the Spokane Spokesman-Review:

The diocese... says ... that bankruptcy lawyers Shaun Cross and Greg Arpin failed to explore other means of ending the abuse scandal ... [and] blames the lawyers for writing a bankruptcy plan that failed to assess and adequately fund the risk of new claims, which nearly forced the foreclosure of churches. The lawsuit also accuses the attorneys of a conflict of interest, in shielding former Bishop William Skylstad from testifying in the first civil trial alleging sex abuse by filing for bankruptcy on the eve of that suit.

The law firm says it provided excellent representation in guiding the diocese out of a crisis that included over 180 clergy sex abuse claims.

Preliminary Injunction Denied In Contraceptive Mandate Challenge By Nashville Diocese Affiliates

In Catholic Diocese of Nashville v. Sebelius, (MD TN, Dec. 26, 2013), a Tennessee federal district court refused to grant a preliminary injunction in a lawsuit brought by the Diocese of Nashville, its affiliated Catholic Charities, and several other affiliated organizations including Aquinas College challenging the Affordable Care Act contraceptive coverage mandate.  The court held that plaintiffs had not shown a likelihood of success on their RFRA, free exercise, free speech and Establishment Clause claims. Finding that the accommodation for religious non-profits does not impose a substantial burden under RFRA, the court said that the burden imposed by the self-certification process required to trigger the accommodation "is too attenuated and speculative to be substantial."  It explained:

Plaintiffs bear no costs for the services and nothing is provided unless a third party employee independently requests the services from yet another third party – the insurer. It is only the independent actions of third parties that result in anyone obtaining contraceptive services.

Conviction of Monsignor For Covering Up Priest's Abuse Is Reversed

A Pennsylvania appellate court yesterday reversed the 2012 conviction of Msgr. William J. Lynn who was the first U.S. priest criminally convicted of covering up sexual molestation of minors by another priest. (See prior posting.) In Commonwealth of Pennsylvania v. Lynn, (PA Super. Ct., Dec. 26, 2013), a unanimous 3-judge panel held that the trial court had misinterpreted the Endangering Welfare of a Child statute under which Lynn was sentenced to a term of 3-6 years. (The statute was later amended.) The appellate court held that the statute under which Lynn was convicted only applied to a person who is directly in charge of a child, not to someone supervising the person in charge. Also there was insufficient evidence to convict Lynn as an accomplice to the priest's violation of the statute. According to AP, prosecutors say they will appeal yesterday's decision and Lynn cannot be released until the appeals process is completed. The appeals court yesterday denied Lynn's motion for bail pending appeal, leaving that to the trial court. (Docket Sheet setting out order.)

UPDATE: On Dec. 30, the trial court set bail for Msgr. Lynn at $250,000.  He will also be subject to electronic monitoring and must surrender his passport. (NBC 10 Philadelphia).

UPDATE 2: The Dec. 31 Philadelphia Inquirer reports that the Archdiocese of Philadelphia has posted $25,000 (apparently the amount needed for a bail bond) for the release of Msgr. Lynn.  The district attorney has strongly criticized the Archdiocese for doing so.

Court Says Catholic Hospitals' Pension Plan Does Not Qualify As "Church Plan" Under ERISA

In an important decision for religiously affiliated hospitals, a California federal district court has held that the pension plan for employees of  Dignity Health, a 16-state non-profit Catholic healthcare provider, does not qualify for the "church plan" exemption in ERISA.  In Rollins v. Dignity Health, (ND CA, Dec. 12, 2013), the court rejected the legal analysis set out by the Internal Revenue Service in a series of private letter rulings, as well as the reasoning of several courts in other circuits.  Instead it held that 29 U.S.C. § 1002(33)(A) clearly requires that to qualify as a church plan, the plan must be established by a church or association of churches.  It rejected Dignity Health's argument that so long as a plan is maintained by a church-affiliated organization, it can qualify as a church plan, even if it was not established by a church.  As reported by Law360, this holding allows plaintiff to move forward with her class action claim that under ERISA, Dignity Health's plan is underfunded by $1.2 billion.  Four similar lawsuits have been filed against other Catholic health care systems by the law firms involved in this litigation.

After 2 Wins, Religious Non-Profits Lose Challenge To Contraceptive Mandate Accommodation In D.C. Federal Distrct Court

After Pennsylvania and New York federal district courts in recent weeks held that the Affordable Care Act contraceptive coverage mandate accommodation for religious non-profits violates the Religious Freedom Restoration Act, yesterday the D.C. federal district court reached an opposite conclusion, rejecting both RFRA and 1st Amendment challenges to the final regulations. In Priests for Life v. U.S. Department of Heath and Human Services, (D DC, Dec. 19, 2013), the D.C. federal district found that no substantial burden was placed on a pro-life group's free exercise by requiring it to complete the self-certification form to opt into the accommodation for religious non-profits:

during oral argument Plaintiffs conceded that they have no religious objection to the self-certification form, in and of itself. Rather, Plaintiffs’ act under the accommodations becomes burdensome only when it is characterized as “cooperating” with or providing “authorization” for “the government’s illicit goal of increasing access to and utilization of contraceptive services.” ... But no matter how religiously offensive the statutory or regulatory objective may be, the law does not violate RFRA unless it coerces individuals into acting contrary to their religious beliefs.... In this case, it is only the subsequent actions of third parties – the government’s and the issuer’s provision of contraceptive services, in which Priests for Life plays no role – that animate its religious objections.

Staten Island Live reports on the reaction to the decision by  Rev. Frank Pavone, national director of Priests for Life:

Injunction or not, we will absolutely not obey, cooperate with, or tolerate in any way this unjust mandate. As Scripture says, we will obey God rather than men.

New York Religious Non-Profits Win Injunction Against Obamacare Contraceptive Coverage Rule

In Roman Catholic Archdiocese of New York v. Sebelius, (ED NY, Dec. 16, 2013), a New York federal district court granted an injunction to two Catholic schools and two Catholic health care organizations, preventing the federal government from enforcing the Affordable Care Act final contraceptive coverage mandate rules against them.  Under those rules, religious non-profits that do not qualify for a total exemption from the mandate may complete a self-certification form attesting to their religious objections and send that form to their insurer or third party administrator.  The insurer or administrator then-- under rules promulgated under ERISA-- must furnish contraceptive coverage to the non-profit's employees without charge.  In a new twist in this case, however, the government conceded that because all the plans involved in this case are "church plans," regulations under ERISA do not apply to them.

The court held that, under the Religious Freedom Restoration Act, the self-certification requirements in the final contraceptive coverage rules substantially burden the religious exercise of plaintiff organizations, and the government failed to show that these rules are the least restrictive means of advancing a compelling governmental interest. The court said in part:

As for the self-certification requirement, the Court rejects the Government’s position that plaintiffs may be compelled to perform affirmative acts precluded by their religion if a court deems those acts merely "de minimis." This argument – which essentially reduces to the claim that completing the self-certification places no burden on plaintiffs’ religion because "it’s just a form" – finds no support in the case law....

Plaintiffs’ religious objection is not only to the use of contraceptives, but also to being required to actively participate in a scheme to provide such services. The Government feels that the accommodation sufficiently insulates plaintiffs from the objectionable services, but plaintiffs disagree. Again, it is not the Court’s role to say that plaintiffs are wrong about their religious beliefs.

Finding a substantial burden, the court went on to conclude that the government had not shown a compelling interest to impose the burden:

Tens of millions of people are exempt from the Mandate, under exemptions for grandfathered health plans, small businesses, and "religious employers" like the Diocesan plaintiffs here. Millions of women thus will not receive contraceptive coverage without cost-sharing through the Mandate. Having granted so many exemptions already, the Government cannot show a compelling interest in denying one to these plaintiffs....

Finally, but very significantly, the Government’s belated revelation that the regulations do not even require plaintiffs’ TPAs to provide contraceptive coverage [because they are "church plans"] fatally undermines any claim that imposing the Mandate on these plaintiffs serves a compelling governmental interest.... In other words, the Mandate forces plaintiffs to fill out a form which, though it violates their religious beliefs, may ultimately serve no purpose whatsoever. A law that is totally ineffective cannot serve a compelling interest.

The court also found that numerous less restrictive alternatives are available, such as direct government provision of contraceptive services or insurance, or furnishing of coverage through third parties without requiring the objecting employer's active participation.

While thus granting an injunction to diocese-affiliated schools and health care organizations, the court refused to grant an injunction barring enforcement against the two diocese plaintiffs themselves, because under the final rules they are completely exempt from the mandate.  In doing so, the court rejected the rationale relied upon by a Pennsylvania federal district court last month in granting a preliminary injunction in a similar challenge. (See prior posting.)  The New York court said:

Count VI of the Amended Complaint alleges that the Mandate unconstitutionally interferes with the Catholic Church’s internal governance by "artificially splitting the Catholic Church in two," dividing its religious arm from its charitable and educational arms.... The Mandate does not "split" the Catholic Church in two – it does not require any change to the religious structure, hierarchy or organization of the Church and its affiliated organizations. At most, it could "split" the Church’s health plan in two. The prohibition on interference with internal church governance applies to ecclesiastical matters such as the selection and supervision of ministers by religious authorities, and plaintiffs have not cited any case that even remotely suggests that a health plan may constitute a matter of "internal church governance" protected by the First Amendment.

Newsmax reports on reaction to the decision. [Thanks to Geoff Surtees for the lead.]

Suit Seeks Release of Files of Former Duluth Priests Accused of Abuse

According to the Duluth News Tribune, a Minnesota state court lawsuit was filed yesterday against the Catholic Diocese of Duluth on behalf of a John Doe plaintiff who says he was abused in the 1970's by Father Robert Klein, now deceased. A statement by the Diocese in response to the filing of the lawsuit says that there are several publicly known substantiated allegations against Klein, but the allegations in the lawsuit are new. The lawsuit claims that the Diocese was negligent in allowing sexual abuse to continue, and that it has created a nuisance by not releasing information about accused priests. The suit asks for release of the names and files of 17 former priests who were identified in a 2004 report as having credible allegations against them. The Diocese says that the 2004 list is imperfect, and that no priests with known accusations of sexual abuse of minors are active in the ministry in the Diocese.

Interview Published With New U.S. Ambassador To The Vatican

Last week Zenit published an interview (Part 1, Part 2) with Ken Hackett, the new U.S. ambassador to the Holy See. Hackett, among other things, talked of his background, his goals as ambassador, and discussed the controversy surrounding the moving of the U.S. embassy from its original location to a site near the U.S. embassy to Italy. (See prior posting.)

Religious Non-Profits Continue To File Suits Challenging Contraceptive Coverage Mandate Accommodation

Suits continue to be filed, or re-filed, by religious non-profits challenging the Obama administration's final rules creating an accommodation in the application of the Affordable Care Act contraceptive coverage mandate to them.  The latest suits are:

• Fellowship of Catholic University Students v. Sebelius, (D CO, filed 12/3/2013) (full text of complaint) (ADF press release).
• University of Notre Dame v. Sebelius, (ND IN, filed 12/3/2013) (full text of complaint) (Notre Dame press release).

ACLU Sues Catholic Bishops For Negligence Over Hospital Guidelines That Bar Abortions In All Situations

The ACLU announced yesterday that it has filed a federal lawsuit against the U.S.Conference of Catholic Bishops and the chair and former chair of Catholic Health Ministries on behalf of a woman who was not informed by a Catholic hospital in Muskegon, Michigan of the option to terminate her pregnancy when her water broke after 18 weeks of pregnancy. The complaint (full text) in Means v. U.S. Conference of Catholic Bishops, (ED MI, filed 11/29/2013), alleges negligence "for promulgating and implementing directives that cause pregnant women who are suffering from a miscarriage to be denied appropriate medical care, including information about their condition and treatment options."  The suit, which does not name the Michigan hospital itself a a defendant, was brought in federal court on diversity of citizenship grounds.  It complains that the USCCB's Ethical and Religious Directives for Catholic Health Care Services, which provide that abortion is never permitted, are required to be applied even when doing so places a woman's health or life at risk. The New York Times reports on the case. [Thanks to Scott Mange for the lead.]

Court Orders Minnesota Dioceses To Release Information On Credibly Accused Priests

A Minnesota state trial court judge yesterday ordered release by the Catholic Archdiocese of St. Paul and Minneapolis of the names and information on 33 priests credibly accused of child sexual abuse. He also ordered the Diocese of Winona to release the names and information on 13 other similarly accused priests.  AP reports that the information, including current status and residence for those still alive, must be released by Dec. 17. The Archdiocese says it will release the information on its website on Dec. 5. It added that most of the names that will be released have already been identified by the media, and all that are still alive have been permanently removed from ministry. The names will be those compiled in 2004. The Church has until Jan. 6 to release information of priests accused since that time.

Suit By Anti-Catholic Group Challenges IRS Revocation of Its Non-Profit Status

The Dr. R. C. Samanta Roy Institute of Science and Technology, Inc. (SIST) has received some public notice in recent months as the attorney for its affiliates in bankruptcy proceedings was disciplined by the Minnesota Supreme Court for making repeated anti-Catholic slurs aimed at a federal bankruptcy judge and several bankruptcy trustees. (See prior posting.) Last year, the Southern Poverty Law Center profiled SIST, calling the Wisconsin-based organization "a mysterious, Catholic-bashing group" that plans to use profits from an amusement park to build a school in Wisconsin and fund another school in India. In Internal Revenue Bulletin 2013-49, (Dec. 2, 2013), the Internal Revenue Service recently announced that SIST has filed a declaratory judgment action challenging the revocation of its non-profit status under the Internal Revenue Code. The filing of the action allows individual contributors to continue to make tax-deductible contributions in limited amounts while the litigation is pending.

Nashville Diocese and Related Entities Sue Over Contraceptive Coverage Mandate

The Tennessean reports that last week the Catholic Diocese of Nashville and a number of its affiliated non-profit organizations filed suit in federal district court challenging the application to them of the federal government's Affordable Care Act contraceptive coverage mandate. Last year a similar suit by the Diocese was dismissed on standing and ripeness grounds. (AP). The new lawsuit is similar to those filed by other religious non-profits since the Obama administration's final rules creating a compromise solution for non-profits were adopted.

Minnesota Supreme Court Suspends Lawyer For Anti-Catholic Statements Against Judges

In In re Petition for Disciplinary Action against Rebekah Mariya Nett, (MN Sup. Ct., Nov. 27, 2013), the Minnesota Supreme Court imposed an indefinite suspension from the practice of law with no right to petition for reinstatement for at least 9 months against an attorney who, among other things, made repeated anti-Catholic slurs directed at a federal bankruptcy judge and several bankruptcy trustees in connection with representing a client. (See prior related posting.) The Supreme Court said:

Nett repeatedly made frivolous and harassing personal attacks and discriminatory statements in 11 different pleadings in five distinct matters. She filed those pleadings in six tribunals over the course of 17 months. She also continued to make false statements about members of the judiciary and others after being sanctioned for the same conduct.

Reporting on the court's decision, the St. Paul Pioneer Press says that some of the objectionable statements were in bankruptcy proceedings of entities related to the Dr. R.C. Samanta Ray Institute of Science and Technology, an alleged cult in which attorney Nett was raised.

Chicago Catholic Archdiocese Settles Abuse Suit; Agrees To Release Files

The Chicago Sun-Times this week reports that the Catholic Archdiocese of Chicago has agreed to a $2.3 million settlement in a suit by a man now in his early 20's who between 2004 and 2006 was sexually abused by now-defrocked former priest Daniel McCormack. The settlement also calls for the Archdiocese to release on Jan. 15 files on allegations of sexual abuse against a total of 30 priests, including McCormack.  The files will include information on how Church officials responded to the allegations. On its website this week, the Archdiocese confirmed that it plans to release these files in January, and also will update its website to include more complete information on 30 others. In a related posting, the Archdiocese responded to several statements made in a press conference by the president of Survivors Network of Those Abused By Priests.

Planned Move of U.S. Vatican Embassy Stirs Conroversy

On Monday, the U.S. State Department held a conference call with reporters (full transcript) to explain its decision to move the U.S. Embassy to the Holy See to a location within the same compound in Rome that houses the U.S. Embassy to Italy and the U.S. Embassy to the United Nations offices in Rome.  As reported yesterday by Religion News Service, former U.S. ambassadors and representatives to the Vatican have charged that this is a downgrading. President Clinton's first ambassador to the Vatican, Raymond Flynn, has been particularly critical, telling the National Catholic Reporter last week:

It's not just those who bomb churches and kill Catholics in the Middle East who are our antagonists, but it's also those who restrict our religious freedoms and want to close down our embassy to the Holy See

However the State Department says there will be no reduction in diplomatic staff. Current U.S. Ambassador to the Vatican Ken Hackett tells National Catholic Reporter that, if anything, the move will give the embassy greater stature. The State Department says the move is motivated by cost savings and serious security concerns.

Pope Francis Issues Important Document On The Future of the Church, Including Role of Religion In Modern Society

As reported by Vatican Radio, yesterday Pope Francis issued an important 224-page document (full text in English) titled Evangelii Gaudium ("The Joy of the Gospel"). The wide-ranging "Apostolic Exhortation" sets out the Pope's vision for the Catholic Church. In a section captioned Social dialogue in a context of religious freedom, the Pope speaks broadly of the role of religion in today's pluralistic society, saying in part:

255. The Synod Fathers spoke of the importance of respect for religious freedom, viewed as a fundamental human right... This includes “the freedom to choose the religion which one judges to be true and to manifest one’s beliefs in public”... A healthy pluralism ... does not entail privatizing religions in an attempt to reduce them to the quiet obscurity of the individual’s conscience or to relegate them to the enclosed precincts of churches, synagogues or mosques. This would represent, in effect, a new form of discrimination and authoritarianism. The respect due to the agnostic or non-believing minority should not be arbitrarily imposed in a way that silences the convictions of the believing majority or ignores the wealth of religious traditions. In the long run, this would feed resentment rather than tolerance and peace.

256. .... Intellectuals and serious journalists frequently descend to crude and superficial generalizations in speaking of the shortcomings of religion, and often prove incapable of realizing that not all believers – or religious leaders – are the same. Some politicians take advantage of this confusion to justify acts of discrimination. At other times, contempt is shown for writings which reflect religious convictions.... Is it reasonable and enlightened to dismiss certain writings simply because they arose in a context of religious belief? These writings include principles which are profoundly humanistic and, albeit tinged with religious symbols and teachings, they have a certain value for reason.

257. As believers, we also feel close to those who do not consider themselves part of any religious tradition, yet sincerely seek the truth, goodness and beauty which we believe have their highest expression and source in God. We consider them as precious allies in the commitment to defending human dignity, in building peaceful coexistence between peoples and in protecting creation.... 

U.N. Experts Call On Malaysia To Reverse Ban On Catholic Paper Using "Allah" To Refer To God

Three United Nations officials today called on the government of Malaysia to reverse its ban on the Catholic publication, The Herald, using the word "Allah" to refer to God in its Malay language edition. A U.N. press release today reports that U.N. Special Rapporteur on freedom of religion or belief Heiner Bielefeldt, UN Independent Expert on minority issues Rita Izsák, and UN Special Rapporteur on freedom of expression Frank La Rue all called for the government to take action rather than continue to defend its position in Malaysia's Federal Court after a Court of Appeals decision last month (see prior posting) upheld the ban.

Catholic Diocese of Gallup Becomes Ninth To File For Bankruptcy Protection

Last week (Nov. 12), the Catholic Diocese of Gallup-- which encompasses parts of New Mexico and Arizona-- became the ninth Catholic diocese in the United States to file for Chapter 11 bankruptcy reorganization. As reported by the Albuquerque Journal, the diocese includes a large part of the Navajo Nation, as well as 6 other tribes and pueblos. The day before the filing, the diocese posted a letter (full text) from Bishop Wall reiterating a statement he made in September that bankruptcy reorganization is "the only way to equitably and mercifully deal with the mounting sex abuse claims, still meet our commitment to [parishioners] and continue the outreach mission of the Church." Two separate bankruptcy petitions, along with a motion for joint administration of the two cases, were filed in federal bankruptcy court in New Mexico since the diocese is organized through two separate entities-- a New Mexico corporation sole and an Arizona corporation sole.  The full text of all the legal documents involved are available from the Diocese's website. [Thanks to Douglas Carver for the lead.]