Case Information
*1 SIGNED.
Dated: February 04, 2008 ________________________________________ JAMES M. MARLAR U.S. Bankruptcy Judge ________________________________________ IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF ARIZONA
legal experience.
In re: ) ) ) ) ) ) ) ) Chapter 11
THE ROMAN CATHOLIC CHURCH OF THE DIOCESE OF TUCSON a.k.a. THE No. 4-04-bk-04721-JMM DIOCESE OF TUCSON, an Arizona corporation sole, MEMORANDUM DECISION Debtor.
The Tort Claimants Committee has asked the court to approve a distribution from the reserve of money earmarked for unknown future claimants, consisting of minors and/or general unknown parties. (Dkt. #1162). The Tort Claimants have asked the court to release $3,000,000, which could then be redistributed to them. The Unknown Claims class, represented by A. Bates Butler, opposes such relief, contending that the request is currently premature, and that the amount requested is too high. He suggests, however, that $1,000,000 is a reasonable and realistic amount to reallocate and redistribute.
The guardian ad litem for the minor children class of claimants, Charles L. Arnold, agrees with Mr. Butler's position.
The court also believes that decisions which affect Unknown Claimants must be approached cautiously. The plan was confirmed in July, 2005, and was an emotional, as well as *2 The mutual effort of all involved produced a humane result. To move too quickly could adversely impact innocent parties whom all have striven so diligently to protect. Caution must therefore be the watchword. The court must give the Unknown Claims representatives' positions deference.
Accordingly, the court will authorize the release of $1,000,000 for redistribution, pursuant to the confirmed plan. The parties may prepare a stipulated form of order for presentation to the court.
DATED AND SIGNED ABOVE.
COPIES served as indicated below on the date signed above:
Susan G. Boswell and Kasey C. Nye Christopher Graver Quarles & Brady LLP Stinson Morrison Hecker LLP
One South Church Avenue, Suite 1700 1850 N. Central Avenue, Suite 2100 Tucson, Arizona 85701-1621 sboswell@quarles.com cgraver@stinsonmoheck.com Attorneys for Debtor Attorneys for Official Committee of Tort Claimants Lowell E. Rothschild and Michael McGrath Gerard R. O'Meara
Mesch, Clark & Rothschild, P.C. Gust Rosenfeld 259 North Meyer Avenue
Tucson, Arizona 85701-1090 Email ecfbk@mcrazlaw.com gromeara@gustlaw.com Attorneys for the Diocese of Tucson Tom Zlaket Lynne Cadigan Thomas A. Zlaket, P.L.L.C. Kim E. Williamson
310 S. Williams Blvd., #170 504 S. Stone Ave.
tazlaket@qwest.net lmcadigan@qwest.net and kewilliamson@qwest.net Attorneys for the Diocese of Tucson Co-Counsel for Plaintiffs Rob Charles Neil J. Konigsberg
Lewis and Roca LLP Konigsberg Law Office PLLC One S. Church Ave., Suite 700 2302 E. Speedway Blvd., #104 rcharles@lrlaw.com Neil.konigsberg@azbar.org Attorneys for Catholic Foundation for the Diocese of Attorneys for Tucson Electric Power Tucson
*3 Donald L. Gaffney and Jonathan M. Saffer Robert B. Millner, Kevin P. Kamraczewski, and Patrick C. Snell & Wilmer L.L.P. Maxcy Sonnenschein Nath & Rosenthal 8000 Sears Tower dgaffney@swlaw.com and jmsaffer@swlaw.com Chicago, IL 60606
Attorneys for Pacific Employers Insurance Company rmillner@sonnenschein.com, kevink@sonnenschein.com and pmaxcy@sonnenschein.com
Attorneys for Pacific Employers Insurance Company G. David Delozier, P.C. Nancy J. March 4016 E. Forest Pleasant Place DeConcini, McDonald, Yetwin & Lacy, P.C.
Cave Creek, AZ 85331 2525 E. Broadway Blvd., #200 gddelozier@aol.com Attorneys for John Doe XXIII, Mother of John Doe XXIII, nmarch@dmyl.com and Confidential Claimant #86662 Attorneys for St. Paul Travelers
Robert K. Malone and Michael P. Pompeo Christopher R. Kaup
Drinker Biddle & Reath LLP Tiffany & Bosco P.A. 500 Campus Drive Third Floor Camelback Esplanade
Florham Park, NJ 07932 2525 E. Camelback Road Robert.malone@dbr.com and Michael.pompeo@dbr.com Phoenix, AZ 85016-4237 Attorneys for St. Paul Travelers crk@tblaw.com Attorneys for Biltmore Associates as Agent for Certain
Creditors
Craig Goldblatt James A. Hayes, Jr.
Wilmer Cutler Pickering Hale and Dorr LLP Cummins & White, LLP 2445 M Street 2424 S.E. Bristol St., #300 Washington, D.C. 20037 Newport Beach, CA 92660-0757 Craig.Goldblatt@wilmerhale.com jhayes@cwlawyers.com Attorneys for Hartford Fire Insurance Company and First Attorneys for Roman Catholic Bishop of Orange State Insurance Company (California)
Christopher J. Pattock Marjorie Fisher Cunningham Office of the U.S. Trustee Curtis & Cunningham 230 N. First Ave., Rm. 204 5610 E. 22nd Street
Phoenix, AZ 85003-1725 christopher.j.pattock@usdoj.gov mfc@theriver.com
Attorneys for Plaintiffs
Michael Zimmer A. Bates Butler Zalkin & Zimmer LLP Fennemore Craig, P.C.
12555 High Bluff Drive Suite 215 One South Church, Suite 100 San Diego, CA 92130 Phoenix, AZ 85012-2615 mz@zalkin.com bbutler@fclaw.com Attorneys for Plaintiffs Unknown Claims Representative
Charles L. Arnold Clifford B. Altfeld
Frazer Ryan Goldberg Arnold & Gittler, LLP Leonard Felker Altfeld Greenberg & Battaile, P.C. 3101 N Central, Suite 1600 250 N. Meyer Avenue Charles.Arnold@azbar.org cbaltfeld@lfagb.com Guardian Ad Litem Attorneys for Plaintiffs
*4 Lawrence S. Viola David A. Fitzgibbons
Knapp & Viola Fitzgibbons Law Offices, P.L.C. P.O. Box 1290 711 E. Cottonwood Lane, Suite E San Mateo, CA 94401 Casa Grande, AZ 85230 lviola@violaw.com david@fitzgibbonslaw.com Attorney for Plaintiffs Attorneys for St. Anthony de Padua School Sally M. Darcy Walter F. Wood McEvoy, Daniels & Darcy, P.C. Walter F. Wood, LTD.
4560 East Camp Lowell Dr. 110 S. Church Ave., Suite 4398 Tucson, AZ 85712 Tucson, AZ 85701 darcysm@aol.com walterfwood@aol.com Attorneys for Unknown Claims Representative Attorney for Brian O'Connor
Ivan S. Abrams Daniel J. Quigley Law Offices of Ivan S. Abrams Quigley & Whitehill, P.L.C. 177 North Church Ave., Suite 200 2730 E. Broadway Blvd. #160
Tucson, AZ 85701 tucson3985@aol.com Quigley@qw-law.com
Attorneys for St. Augustine Catholic High School First Catholic Slovak Ladies Terri Thiessen
24950 Chagrin Blvd. 3781 W. Golfcourse Rd.
Beachwood, OH 44122 Thatcher, AZ 85446
U.S. Mail U.S. Mail
Belen Alderete Michael Moylan 215 N. West Moreland 1724 W. Pineriver Place Tucson, AZ 85746 U.S. Mail Official Creditors Committee of Tort Creditors / U.S. Mail
Jeanne Metzger Brian O'Connor
8743 E. Rose Lane 3704 S. Marvin Scottsdale, AZ 85250
Official Creditors Committee of Tort Creditors / U.S. Mail Official Creditors Committee of Tort Creditors / U.S. Mail By /s/ M. B. Thompson Judicial Assistant