Key Facts:
• Seattle University is proud of the Jesuit Catholic values, ideals, and spiritual tradition that animate our educational mission.
• For over a century, Seattle University has operated as an independent educational institution incorporated under the laws of the State of Washington.
• Seattle University is an independent institution that is legally and financially separate from the Oregon Province of the Society of Jesus.
• Seattle University is not responsible for the debts of the Oregon Province and has not been involved in the bankruptcy proceeding or the settlement.
A Message from Seattle University
March 25, 2011
Today the Oregon Province of the Society of Jesus announced that it had reached a financial settlement with persons who had filed claims of sexual abuse in the Province's bankruptcy proceedings. News of the settlement has been reported in several media outlets.
Seattle University is not a party to the Oregon Province bankruptcy proceedings and is not involved in the settlement that was announced today.
As you know, the university and the Oregon Province are legally and financially separate and independent entities. As such, the Province's financial reorganization and settlement will not impact Seattle University's operations, finances or educational mission. We value the contributions of the Northwest Jesuits who continue to animate our educational mission and we remain steadfast in our commitment to educate our students in the Jesuit Catholic tradition.
Questions and Answers
As reported in local and national media, the Oregon Province of the Society of Jesus announced that it has reached a settlement with creditors representing abuse victims as part of the Province's Chapter 11 bankruptcy. The information below is intended to answer questions that you may have regarding what effect this settlement has on Seattle University.
Is Seattle University contributing financially to the Oregon Province's bankruptcy settlement announced on March 25, 2011?
No. Seattle University is not responsible for the debts or financial obligations of the Oregon Province and is not contributing money to fund the settlement that was announced by the Province.
Will the Oregon Province's bankruptcy settlement have a financial impact on Seattle University?
No. Seattle University is not responsible for the debts or financial obligations of the Oregon Province. The University's assets will not be used to fund the settlement or to satisfy any claims of creditors of the Oregon Province. Seattle University is a private institution of higher learning that is legally and financially separate from the Oregon Province. Seattle University will vigorously defend itself against any effort to assert a claim against its assets.
Why did the Oregon Province file for bankruptcy in February 2009?
The Oregon Province had previously settled a series of lawsuits and claims by individuals who reported abuse by Jesuit priests from the Province. The vast majority of the claims arose in Alaska, Montana and eastern Washington. Because of the nature of the claims that remained outstanding, the Oregon Province was forced to initiate bankruptcy proceedings.
What is the relationship between Seattle University and the Oregon Province of the Society of Jesus?
Seattle University and the Oregon Province of the Society of Jesus are separate and independent corporations established under the laws of different states. The University and the Oregon Province share the Jesuit tradition of educational excellence and service for others. Seattle University is steadfast in its commitment to the Jesuit Catholic ideals that are the hallmark of our educational mission and spiritual tradition.
Will the Oregon Province's bankruptcy settlement affect any of Seattle University's assets?
No. The Oregon Province has not asserted or claimed any ownership interest in the assets of Seattle University. As explained above, Seattle University is not responsible for the Oregon Province's debts. Early in the bankruptcy process, lawyers for the creditors threatened to bring Seattle University and other schools into the bankruptcy proceeding. Their arguments were without merit and Seattle University did not become a party to the proceedings or negotiations that led to the settlement. Seattle University will vigorously oppose any further efforts of this nature and will prevail as a matter of law should the claims come before a judge. The University is a non-profit organization incorporated in the State of Washington and holds exclusive title to its own property. The University is not owned, operated or controlled by the Oregon Province. Seattle University's assets are held in charitable trust, are subject to donor restrictions, or can be used only in the furtherance of the University's educational purposes.
Does Seattle University receive any financial subsidy from the Oregon Province?
No. Seattle University receives no financial subsidy from the Oregon Province. The University has consistently maintained and issued separate, independently audited financial statements and, through the Board of Trustees, has consistently conducted its own management, accounting, fundraising and budgeting functions.
What is the role of the Jesuits on the University's faculty, staff or Board of Trustees?
All faculty, staff and administrators of the University are employees of the University. The Jesuits who are employed at Seattle University are subject to the same rules and responsibilities as other University employees. The presence of faculty, staff and administrators who are part of the Jesuit tradition assists Seattle University to educate from its Catholic character and to form leaders for a just and humane world.
Just like their lay counterparts, any Jesuit priest who serves on the Board of Trustees of the University has fiduciary duties under Washington law to exercise authority solely in the best interests of the University and its educational purposes. The Oregon Province does not, directly or indirectly, exercise control over the University or the Board of Trustees in the management and operation of the University.
Seattle University is one of 28 independent Jesuit Colleges and Universities in the United States. The University is grateful for the presence and efforts of Jesuits who work at Seattle University and who animate the tradition of Jesuit higher education.
Is Seattle University responsible for any of the alleged abuse or involved in these cases in any way?
The vast majority of claims filed in the Oregon Province Chapter 11 bankruptcy relate to events in Alaska, Montana and eastern Washington. The University played no role in those events. Over the past few years, the University was saddened to learn of a small number of claims of abuse occurring decades ago and unrelated to the University's operations, but involving two Jesuits who were at the University. Both of these individuals are deceased. Two lawsuits against Seattle University which involved eight individual plaintiffs were stayed by the bankruptcy judge as a result of the Province's bankruptcy. Once the bankruptcy is concluded, we anticipate that these cases will be remanded to state court. The University does not comment on the details of pending litigation.
