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Facing the equivalent of US$63,000 in monthly legal bills, the Cariboo (Anglican) Diocese in British Columbia was expected to close its doors on December 31. Its bishop, James Cruikshank, was to retire the same day and will not be replaced.

The diocese is Canada's most visible loss associated with thousands of suits charging sexual abuse. In the fall, the national government made an offer to shoulder 70 percent of out-of-court legal settlements for physical and sexual abuse claims at church-run residential schools for natives.

"All the government has talked about is money, which is the one thing the churches don't have," says Bud Smith, Cariboo's chancellor. "We have limited ways of raising it."

The government's offer came too late to help Cariboo. The small diocese, based in the town of Kamloops, has only 11 full-time clergy and 5,000 parishioners in 45 congregations.

More than 30 years ago at Cariboo's St. George Indian Residential School in Lytton, British Columbia, a staff member sexually assaulted four male students. In 1999, a judge approved a settlement of $126,000 to each of the four victims (all dollar figures in this article are U.S. equivalent). The judge ruled that the liability should be shared, with the government taking 40 percent and the church taking 60 percent. The diocese will remain a legal entity while the case is appealed.

Some experts estimate it may cost $1.26 billion to settle suits from more than 8,000 plaintiffs. Canadian church representatives say that a 30 percent liability, as suggested by the government, could cause more than $300 million in church payments.

Church leaders want the national government to cap liability for churches at a fixed amount.

Anglican Archdeacon Jim Boyles, chairman of the ecumenical team negotiating with the government, says his church has given $472,500 to a healing and reconciliation fund to help resolve abuse cases outside the court system.

"We would consider a direct appeal to our members for donations to the healing fund," Boyles says, "but church members won't contribute to open-ended litigation costs."

The national government's latest offer would apply only to out-of-court settlements. Plaintiffs would not be able to claim loss of language and culture. Deputy Prime Minister Herb Gray has taken the lead in negotiations with churches. He says churches across the country could easily raise the money needed for settlements by asking for special donations.

David Crawley, Anglican metropolitan of British Columbia and the Yukon, will offer episcopal oversight to the churches of Cariboo. These churches hope to keep their modest properties and continue their ministries.

Copyright © 2002 Christianity Today. Click for reprint information.

Recent mainstream media coverage includes:

Lawsuit bankrupts first diocese —National Post (December 22, 2001)

Canadian churches may face insolvency — The Washington Post (December 6, 2001)

Churches want high ground without making the climb — Ian Hunter, Globetechnology.com (December 5, 2001)

Pay now for schools' abuse: Natives — The Province (November 12, 2001)

Catholics forced to pay twice for native lawsuit — The Ottawa Citizen (November 12, 2001)

Offer offends lawyers — Regina Leader Post (October 31, 2001)

Canada to settle Indian abuse cases — BBC (October 30, 2001)

More articles and resources on the residential schools cases are available from Yahoo's full coverage areas on first nations and religion.

Previous Christianity Today articles about the lawsuits include:

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January 7 2002, Vol. 46, No. 1