Archdiocese's counsel was transparent, made hard decisions, attorneys say

When the Archdiocese of Los Angeles faced its first wave of sexual abuse cases in the early 2000s, its response to the litigation and the ensuing public relations crisis was driven by a cardinal with a strong instinct for protecting himself, and his unsophisticated general counsel, an obstinate nun who had an equally strong instinct for protecting the cardinal.

In 2003 and deep into the crisis, the archdiocese turned to Margaret G. Graf, a former corporate lawyer from Reed Smith, to be its general counsel. Although Graf lacked litigation experience, she had an ability to work constructively with parties holding diverse interests. Known to most simply as "Marge," she quickly set about professionalizing the church's response to the lawsuits. More importantly, she spearheaded the implementation of new policies and procedures designed to prevent future instances of sexual abuse in the church.

And in 2007, the archdiocese agreed to a then-record settlement of $660 million to resolve lawsuits filed by 508 victims.

On Wednesday, following the announcement of another historic settlement -- $880 million to 1,353 victims -- lawyers from both sides credited Graf once again as the key figure in brokering the deal.

"She made it clear that the goal was to do the right thing," said Morgan A. Stewart, one of four liaison counsel for the plaintiffs. "A lot of this is owed to her, to her desire and willingness to make hard decisions.

"She was an advocate for both sides at times. I had never been in that situation. It was uncomfortable at times," said Stewart from Manly, Stewart & Finaldi.

Raymond P. Boucher was the sole plaintiffs' liaison counsel in the 2007 litigation and one of the four liaison counsel in this week's settlement. He called Graf "vital to this process."

"Marge is always straight up. She was in 2007, and she was through this whole process. At the same time, she is steady and has compassion.

"She has one of the most firm moral compasses of any lawyer I've ever met," Boucher said.

Kirk D. Dillman, a principal at McKool Smith who was the archdiocese's outside counsel in the litigation, echoed that sentiment.

"Her contribution was absolutely critical. Marge was a compassionate and pragmatic force that, in many ways, was the glue that held the mediation together and that pushed it over the finish line," he said.

In an interview on Thursday, Graf credited her training as a transactions lawyer with bringing a fresh perspective to the litigation. "It is my mantra to resolve the issue, not win the points," she said.

However, she attributed the success of the process to her deepened understanding of the experiences of sexual misconduct victims.

"I came to recognize and appreciate that individuals who are victims of sexual misconduct - however they view that, and that is in the eye of the beholder - that is a lifelong impact," she said.

"We need to appreciate that and respect the individuals," she said. "It often takes a long time to come to terms with that. It's not like your car is wrecked and you need to deal with it."

Listening to Graf talk now is a stark reminder of how far the Los Angeles archdiocese has come from the early 2000s, when the Roman Catholic Church was being forced to confront for the first time rampant sexual abuse by its priests, teachers and coaches. Cardinal Roger M. Mahony, now 88 and retired, often seemed like a deer caught in the headlights, unfamiliar with the process that attends sprawling criminal and civil investigations and - victims and their advocates said - a keen instinct for shielding himself from claims of coverup, claims that turned out to be true.

Then there was Sister Judith Ann Murphy, the church's general counsel who had no experience in complex litigation and shared Mahony's instinct for protecting Mahony. Soon after the scandal broke, Murphy infamously admonished monsignors who were about to be questioned by deputy sheriffs about sexual abuse, "this is not a session to be chatty."

Plaintiffs' attorneys noted that Graf, in contrast, was remarkably transparent in the latest negotiations with the parties and the mediator, retired Superior Court Judge Daniel J. Buckley, now at Signature Resolution. They emphasized that this openness was especially critical in the current process, as the church had already exhausted its insurance coverage and needed to clearly demonstrate to the plaintiffs the extent of the settlement it could financially sustain.

Graf said it was important to "be candid and be honest but also be confidential when it was required."

She credited the lawyers and Buckley with bringing a level of professionalism and sophistication to the process to reach a deal.

And while all the parties said the church's lack of insurance complicated reaching a settlement, it also streamlined the process. "In 2007, one of the greatest wastes of time was getting tangled up and caught up in the insurance," Boucher said.

This settlement was also eased by "the transparency and sunshine" that came with the publication of church files following the 2007 settlement that detailed what leaders knew about the abuse and what they did to cover it up, Boucher said.

"That was a substantial foundation that this new litigation could stand on. It accelerated the process and made it successful," he said.

In Thursday's interview, Graf expressed gratitude for the praise from attorneys involved in the litigation but emphasized that her greatest pride lies in the church's proactive efforts to prevent abuse. She highlighted the creation of a comprehensive training program designed to identify and stop any form of child abuse. The program, she noted, has successfully trained hundreds of thousands of clergy members, teachers and staff in recognizing and addressing potential abuses, establishing the church as a model in safeguarding children.

As evidence of its success, she pointed to a graphic the church released with the settlement announcement that shows a bell curve of reported cases of abuse that peaked in the 1970s and dwindled to a handful by the early 2000s.

"The archdiocese has done a substantial job of protecting children who are in their care," Graf said.

But then she likened it to California's annual earthquake preparedness drill.

"This is something people always have to be mindful of," she said.