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CNN Live Today

Law Testifies in Open Court

Aired August 02, 2002 - 11:01   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


DARYN KAGAN, CNN ANCHOR: Law is in a legal spot. The head of the Catholic Church in Boston is testifying in open court this morning, trying to explain why the church backed out of a multi- million dollar settlement with sex-abuse victims.
Our Jason Carroll has been watching the testimony of Cardinal Bernard Law and he is covering the story for a number of weeks. He joins us with the latest from New York -- Jason, good morning.

JASON CARROLL, CNN CORRESPONDENT: And good morning to you, Daryn. You know, this is the first time Boston's Cardinal Bernard Law has had to testify in open court with regards to the civil case involving defrocked priest John Geoghan. He's been testifying all morning. Right there you are seeing a live picture of the court there up in Boston. The court right now taking a short break. We're told that Boston's Cardinal Bernard Law has just reentered the courtroom at this time.

Just to give you brief background of what has been happening up there in that case, Mitchell Garabedian, an attorney who represents 86 plaintiffs who allege that they were sexually abused by defrocked priest John Geoghan, Mitchell Garabedian saying that he had reached a deal with the church, a $15-30 million settlement with the church. The church now saying that that settlement was not binding because they say Mitchell Garabedian did not have all of the signatures that he initially needed in order to make that particular agreement binding.

That is the defrocked priest, John Geoghan that you see there, the one who was in question. Now throughout this whole legal going back and forth, Law has been saying that this morning, in fact, he said that that agreement was, in fact, not binding because all the signatures were not there, and he said that that initial agreement that they had reached was actually just a proposed settlement. Listen to what he had to say this morning.

(BEGIN VIDEO CLIP)

CARDINAL BERNARD LAW, ARCHBISHOP OF BOSTON: What was in place was an agreement in principal as to what a settlement would look like, contingent upon the agreement of all the plaintiffs and all the defendants. Absent the agreement of all the plaintiffs and all the defendants, there was not a settlement in place. You knew that. We knew that. The word "settlement," was being used in a broad way to cover a proposed settlement. Was that accurate? I wish that I had not used the term. I wish that I had used the term "proposed settlement." I did not use that term. My intent was certainly to convey that, because I was not under the illusion that that settlement was -- was a fact.

(END VIDEO CLIP)

CARROLL: Again, that Boston's Cardinal Bernard Law speaking this morning while he was testifying. Garabedian had all 86 signatures from all the plaintiffs in this particular case, the civil case, but did not have all of the signatures from the 16 defendants named in this particular suit.

Now you may remember a few months ago, Daryn, and I know that you do, in fact, when the Archdiocese of Boston backed out of this, what they call a proposed settlement, because they say that the finance counsel said that the archdiocese simply did not have enough money to pay. Why did they not have enough money to pay? Why did they not have enough money to pay? Well, you're looking at one reasons right there. That is another priest. That is Paul Shanley. Paul Shanley is involved with a criminal case as well as a civil case up there in Boston. The church saying they have so many outstanding civil cases that they simply did not have -- they do not have, at least in their opinion, the money to pay all of these claims.

What seems odd at this point, Daryn, is why the church didn't say back then that there was a problem with the signatures in the Geoghan case. Why it was not mentioned back then. Perhaps we will get more information about that as this particular hearing continues this morning.

You can see right there Boston's Cardinal Bernard Law about to take the stand again this morning. Superior Court Judge Constance (ph) Sweeney will be the one who will ultimately rule and make the decision as to whether or not this agreement -- this civil agreement is binding. This hearing is expected to take anywhere between three and seven days -- Daryn.

KAGAN: Jason, couple of quick questions for you. First of all, another thing that was odd was this finance counsel that you refer to. Who is it, and how did it -- I mean you said that they said they actually couldn't pay, but the kind of power the finance counsel has was a little strange at the time as well.

CARROLL: We were all learning as we were going along with all that, but apparently the finance counsel does have the ultimate power to decide if claims above a certain amount are to be paid out. They do then have the final say -- at least this is way we understand it -- they have final say as to whether or not an archdiocese can, in fact, pay.

I also want to point something else out. This morning, the "Boston Globe" is reporting that the church there, the archdiocese of Boston, is considering as some sort of a last resort in terms of perhaps filing bankruptcy if they are forced to pay out all of these particular claims. So lots more still going on in this particular case. Again there, you see Boston's Cardinal Bernard Law about to take the stand once again.

KAGAN: Well, and how about that picture, Jason? I mean, there has been so much that has been kind of jaw dropping that we've learned and revelations that have come out through -- over the last few months, but when I saw that picture for the first time this morning, I thought Cardinal Law on the stand, a live picture out of a courtroom. If this picture doesn't tell -- you know, tell the story in a thousand ways, I don't know what does.

CARROLL: It really does. I think this is quite frankly something that the church wanted to avoid. They wanted to avoid having Boston's Cardinal Bernard Law up there, on the stand, in front of public view. It is very damaging for Cardinal Law, especially, as you know, because there's been many calls for Cardinal Law's resignation because of his handling or some would say mishandling of the priest crisis up there in Boston, and so this is definitely something that I think many people within the church wanted to avoid.

KAGAN: And I know you will be listening in to more of that testimony, and we will be checking back with you as that comes to light and learn more about that later. Jason Carroll in New York. Thank you so much.

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