SAU community assured no problems

Nov. 4, 2004
By Jody Ferres
Layout Editor

During the last few years, many of the nation’s 195 Catholic dioceses and archdiocese have been fighting off sex abuse lawsuits.  One of the multi-million dollar lawsuits has been going on in the Davenport Catholic Dioceses.  Although there have been some speculation of St. Ambrose University getting drug in the middle of the court case, SAU students and faculty can learn assured that their college will remain out of the Davenport Diocese sex abuse.

Because of the high settlement costs of these cases, the Davenport Dioceses believed that one of their only options was to file bankruptcy.  Some speculation was that the prosecution could then come after the college’s assets.  According to President Rogalski, SAU will remain untouched.

 “There’s no way SAU could be tied in,” said Rogalski.  “Financially there is no tie to the college at the diocese.”

Spiritually, however, is another story.  The present bishop does sit as president of the SAU Board of Directors.   Although the bishop’s views are taken into consideration, the Board of Directors has the ultimate say over the college’s financial standings and well being.  

 “SAU is a separately incorporated and independent non-profit organization under the laws of the State of Iowa,” Rogalski said in an email to all SAU students and faculty earlier this semester.  “The bishop has no authority over the operations of the university.”

With the speculation over St. Ambrose getting involved in the case, some may ask how the litigation even considered the college to be financially part of the Davenport diocese.

Because the bishop sits on the Board of Directors, the prosecution, which is the legal team bringing the charges against the church, wanted to use the corporate vail theory.  This legal terms means that since the bishop/church has dealings with the University, the University should be included in the churches’ assets.

However, before this theory was taken further, the Davenport diocese settled with the 37 victims at an average of $243,243 per person, or a $9 million lump sum.

Rogalski said he felt the stab at the school was a last resort.

“They (prosecution) was looking for a remedy,” said the SAU president.   “I’m pleased that there’s resolution now and hopefully victims are given their justice.” 

 Father Chuck Adams, who has been with St. Ambrose for nine years, feels that it’s a sad situation for the church community.

“It’s very sad, but they’re making up for what the victims had to go through,” said Adams.   “Thankfully St. Ambrose just has a strong emotional and religious tie but not legally.”

St. Ambrose has obtained special legal counsel in the chance of future litigation brought to the University in this matter.

Back to the NEWS-PAGE or "The Buzz" HOMEPAGE