The law firm accused by the Spokane, Wash., diocese of mishandling a 2007 bankruptcy and settlement with clergy sex abuse victims filed a motion to dismiss the diocese's claims on Monday in federal bankruptcy court, the National Catholic Reporter reported yesterday. Based in part on depositions from retired Bishop William Skylstad and Fr. Steven Dublinski, the diocese's previous vicar general, the Monday filing charges that "the current claims are simply an attempt to throw mud at Paine Hamblen to try to get some insurance money." For its work leading to the 2007 settlement, the law firm of Paine Hamblen was ordered to be paid about $3.5 million by U.S. Bankruptcy Judge Patty Williams. The Spokesman-Review on Wednesday reported that the diocese "is asking for at least $4 million in damages from the firm after alleging attorneys failed to disclose a conflict of interest in the case and were wrong about how many claims would be made against the church by abuse victims." Paine Hamblen's motion to dismiss was in response to a second effort by the diocese seeking return of bankruptcy attorney fees. A suit was filed in state court in 2012, but it was "removed to federal court and dismissed by a federal judge because the diocese did not file in the federal bankruptcy court" as would have been required, said Jane Brown, managing partner of Paine Hamblen.
