Victims file objections to Diocese of Davenport property sale
Attorneys representing the victims of sexual abuse by clergy members have filed motions objecting to the sale of three properties belonging to the Diocese of Davenport.
The motions are expected to be heard today in U.S. Bankruptcy Court, Southern District of Iowa. The diocese filed for Chapter 11 bankruptcy last fall after facing mounting litigation from abuse victims.
In recent weeks, the diocese has filed motions with the court asking a judge to approve the sale of three properties in its attempt to compensate creditors and emerge from bankruptcy.
The proposed sales include:
n Farm land at 3718 Telegraph Road to Charles Van Fossen for $310,000.
n The bishop’s former home at 2761 Scott St., which is to be sold to St. Ambrose University for $170,100.
n A single-family house at 803 E. 39th St. to James and Gayle Ridge of Long Grove, Iowa, for $70,125.
Attorneys representing the creditors committee, which is comprised of victims, claim the diocese has not provided evidence regarding the fair market value of each property, making it hard for the committee to analyze the offers.
The motion claims the diocese planned to divulge all offers to the committee but has revealed only one offer for each property. The committee is asking the court to order the disclosure of additional offers, if there are any.
The committee also wants information about the marketing efforts to sell each property.
Finally, the committee also wants the diocese to divulge its relationships, if any, with the buyers and any agreements they have for the future use of the property, including donating it back to the diocese.
In the case of the St. Ambrose agreement, the committee wants to know whether the diocese is trying to direct the sale to the university “for the benefit of the debtor after its reorganization, and to the potential detriment of the estate.”
Dustin Lemmon can be contacted at (563) 383-2493 or dlemmon@qctimes.com.