Washington Courts

The contempt hearing coming up on February 22, 2010 in Bankruptcy Court before Judge Patricia Williams at 1:30 P.M. is more than a tempest in a teapot. What appears to be a minor sort of tiff between attorneys goes to the heart of the legal system. Beneath the surface, a significant matter is at stake – truth telling.

Who are the players? The man who sent the email message of January 13, 2010 is Greg Arpin, an attorney at Paine Hamblen in Spokane who represents the Spokane Diocese (the Reorganization Debtor). The woman who received the email and is threatened by it is Gloria Nagler, an attorney at Nagler & Associates in Seattle. She is the Plan Trustee of the Spokane Diocese Bankruptcy. 

Over the past several months there has been a dispute between the Plan Trustee and the Spokane Diocese regarding the payment of claims regarded as “future tort claims” out of the Plan Trust. The Tort Claims Receiver has received certain claims and has approved them. The Reorganization Debtor (the Spokane Diocese and its attorney Greg Arpin) disputed the payment of some of the claims as claims which have been approved improperly under the plan.

Whether these claims should have been paid or should not have been paid is a question which is winding its way through the judicial system. If the claims were ultra vires claims and they were paid, the Plan Trustee might have personal liability for a breach of her fiduciary duties to the Plan.

There will be more of such claims; claims not a part of the claims proceeding through the appeal process.

The Plan Trustee, apparently, does not have malpractice insurance regarding this potential liability. When she took on the Plan Trustee position she apparently understood that she might be personally liable for breach of trust re payment of ultra vires claims.

The Plan Trustee’s motion for contempt says that the Greg Arpin is threatening her from complying with a court order, the payment of some of the claims approved in the future tort claims category. See Plan Trustee’s Motion for Order to Show Cause . . . and related pleadings.

The court orders did not do away with the Plan Trustee’s liability. Her possible liability is simply a truth, a fact. She has no right to feel threatened by the fact that Mr. Arpin has reminded her of her possible liability. And, even if the court imposes contempt against Mr. Arpin, her liability will not go away. If it exists, it will continue to exist despite an order of contempt.

So here is the interesting point: In coming the court on February 22, 2010 to show cause why contempt should not be imposed, is truth a defense? Or simply put, how can one be held in contempt for simply speaking the truth?

It would not make sense to hold one in contempt for truth speaking.

This case will not be the first to address the issue. For those interested in it the old California case of McClatchy v. Superior Court, 119 Cal. 413, 51 Pac. 696 (1897) might be of some interest. In this case the court cited the editor of a newspaper with contempt for the way a trial was described. The newspaper’s counsel tried to put on testimony that what was said was true. The court rejected the proof which was proffered. On appeal, the case was reversed. Truth is a defense to contempt. See also, Contempt- What Constitutes - Defence-Jurisdiction- Review-Mc- Clatchy v. Superior Court of Sacramento County, 7 Yale L. J. 281 (October 1897-June 1898).

The contempt sought against Greg Arpin, the attorney for the Spokane Diocese in the bankruptcy proceeding in Spokane seems to be a tempest in a tea pot.  Here is the January 13, 2010 email which supposedly is the basis for the order to show cause:

Gloria [Nagler] and David [Kerruish]:

The Diocese has determined not to request from the District Court a stay of the claim payments pending its appeal.  It does intend however on pursuing its appeal of the issues raised by Judge Williams’ determinations regarding review of the TCR’s claims decisions.  If during the course of that appeal, the TCR issues any rulings allowing additional claims which allowances we feel are in violation of the terms and conditions of the Plan regarding future claims, we will move at that time with the District Court for stay of payments on any such claims pending resolution of the issues on appeal.  Further, if it ultimately prevails on its appeal that the TCR determinations can and should be reviewed for ultra vires acts and abuse of discretion, the Diocese reserves all rights to look to the Trustee to reimburse the FC Fund for money paid out on claims that do not qualify under the Plan as Future Claims.  

 Greg [Arpin]

See Nagler Associates.

In the Spokesman Review, Spokane Diocese lawyer faces court action piece it is said that Ms. Nagler says she does not have insurance to cover the claim if one is made.  This is an odd bit.  Ms. Nagler seems to be saying she should not have to have professional insurance for her negligence as a trustee and that because she does not Mr. Arpin should be held in contempt because he has asserted she has to be sure she meets the proper standard of care in her dealings.

Something is quite troublesome here.  More work to understand this contempt request needs to be undertaken.

As we gain more knowledge of the Morning Star and Spokane Diocese so-called sex abuse cases one must begin to wonder a massive fraud may be taking place and may have taken place. A fraud of the system of justice and a fraud of Morning Star and Spokane Diocese and perhaps other institutions.

Today we read in the Spokesman-Review that an attorney for the Diocese is going to brought before the local bankruptcy court for contempt. S-R, Diocese lawyer faces court action. His alleged contempt is that he is, and has been, critical of the trustee in the Spokane Diocese bankruptcy. For what you may ask? For allowing new claims to be filed in the proceedings long after everyone had knowledge of the proceedings and for payments to which the trustee seeks to make regarding some of the claims. Id.

The Spokesman-Review, on November 3, 2009, did a story on the new claims. S-R, Diocese hit with 21 new claims. The paper reported that seven of the new claims had already been approved.

Mr. Arpin has been critical of this and has voiced his criticism to the bankruptcy trustee, Gloria Nagler, of Nagler Associates, Seattle.

I have the impression that certain people think the Spokane Diocese and Morning Star and perhaps other Catholic organizations are easy pickings. There is significant cause for concern the way things have been put together and how the claims so easily filed and approved in the bankruptcy proceedings and how the claims so easily get into court and before juries.

There is at the very need for some true light to be shown on what has been going on and is going on.

In the Morning Star cases many of the plaintiffs have spent time in prison. They have spent time in prison with other plaintiffs. Word gets around in prison. Plans get made. One prisoner does one thing, another prisoner joins in. The recent history of the attempts of prisoners to use the public disclosure act for fun, trouble and profit instead of true desire to see records is an example.

One must wonder whether Morning Star claimants have made claims, are making claims, in the Spokane Diocese bankruptcy. For example, one source told me that Kenneth Putnam has already received $300,000 from the Spokane Diocese bankruptcy.

In the Putnam case, Michael Clarke a former Morning Star resident and man who has spent significant portions of his life in various prisons in Washington came up, in the “final hour” of the Putnam proceedings with the claim that Father Weitensteiner has been paying him “hush money.”

Mr. Clarke also has a claim against Morning Star. One wonders whether he made a claim in the Spokane Diocese bankruptcy.

I do not think we know the truth about the Spokane Catholic Sex Abuse Claims. One has to wonder whether it is not an enterprise, an industry, a combination. See my previous post, Morning Star: Are the Clarke allegations a massive shakedown?

What is to be done? I think the Spokane attorney should consider at least some action to start. See this letter to Prosecuting Attorney Steve  Tucker.  . At the very least, the prosecutor has to engage the power of his office to determine whether Michael Clarke or Father Joe Weitensteiner is lying. The prosecutor must also find out whether others are conspiring regarding the lie and if so who they are. Prosecution should proceed under the criminal laws.

If Mr. Tucker does not act, he will not be fulfilling the responsibilities of his office.