In the world of sexual abuse litigation, lawyers have developed a grim formula to put a value on a victim’s suffering.

For the Catlin Gabel School, the exclusive private school mired in a sexual abuse scandal involving several teachers, the formula could determine its fate.

Was​ ​there intimate touching? Was there penetration? Did it happen more than once? And did authorities know about it and fail to do anything about it?

Yes, yes and yes.

Catlin has admitted as much in the stunning internal report that found four decades of sexual abuse and misconduct at the school. The report, released five weeks ago, named some of the best-known and most-liked instructors to ever work at Catlin as alleged serial sexual predators.

With dozens, perhaps hundreds, of potential lawsuits in the works, the question becomes: Does Catlin have the resources to survive a flood of complaints?

The school’s admission that its administrators repeatedly failed to heed warnings that students were being abused could prove especially expensive.

“Juries tend to get angry when they learn the organization knew,” said Peter Janci, a Portland lawyer who is expected to file a complaint against Catlin in the coming weeks. “That’s when significant punitive damages can come into play.”

Indeed, in the highly publicized 2010 case of a former Oregon Boy Scout who alleged he’d been abused by a scoutmaster, a Multnomah County jury awarded ​$1.4 million in compensatory damages. But they piled on $18 million in punitive damages. Plaintiff’s attorney Paul Mones is convinced jurors did so because he harped on the fact that the perpetrator had already admitted to his Boy Scouts of America bosses that he had earlier molested 17 other boys.

Catlin officials declined interview requests and ​​would not comment on the pending litigation. In a written statement, officials said they believe the school will emerge intact from the current crisis.

“We are talking to and learning from other private schools who have faced similar types of litigation,” Catlin officials said in a written statement. “They have not only survived but have emerged safer and better schools as a result of going through this process. This is what we hope for Catlin Gabel as well.”

Growing numbers

In recent weeks, Portland plaintiff’s lawyers have been signing up new clients at a rapid clip.

“We’ve seen other cases where there were more than 100 victims,” said Janci, the Portland attorney. “It could be a hundred or a multiple of that at Catlin, given the number of people involved and the length of time they were there.”

Kim Wilson was the first former student to file suit. The Portland woman, now 36, alleges that Catlin teacher Richardson “Dick” Shoemaker groped and molested her more than 80 times. She is seeking $4.5 million in damages.

Gilion Dumas, Wilson’s lawyer, said studies have indicated that if someone is convicted of sexually abusing one victim, the perpetrator likely abused 10 others before they were caught.

“So just given the nine perpetrators listed in the report, we likely have at least 90 victims,” Dumas said. But she agrees with Janci that the final count of Catlin lawsuits could be more than double that.

“There will be new claims coming for years,” she said. “We could see a couple hundred cases before it’s all over.”

Dumas is among the lawyers expected to file new complaints against Catlin on behalf of multiple clients in the coming weeks.

Schools of all sorts from all over the country have been hit hard by sexual abuse claims. That includes some of the best-known names in private education -- from the Brentwood School in Los Angeles to St. Ann’s School in Brooklyn.

In response, insurance companies have retreated from the private school business. Insurers remain eager to sell standard liability policies. But they often refuse to cover sexual abuse claims.

“​Many insurers are adding explicit exclusions in their general liability policies, said Ed Hancock, chief underwriting officer at Church Mutual Insurance Co. “Sexual misconduct is not an accident from the standpoint of the perpetrator, and traditionally general liability insurers are comfortable insuring accidents.”

Church Mutual is one of the exceptions to the rule. It remains willing and eager to sell what Hancock calls “SM” (sexual molestation) insurance to churches, camps and schools. The company based in Merrill, Wisconsin, insists, however, that its customers agree to be “coached” by their new insurance company.

Church Mutual’s watchwords: Eternal vigilance.

“​You don’t let anyone who is new to the organization get unsupervised access to vulnerable populations,” Hancock said. “A sexual predator is attracted to occupations where there are opportunities. If you suspect something, investigate.”

Church Mutual’s willingness to cover sexual abuse claims is proving good for its business. The company insures about 100,000 institutions. Hancock said there’s been a “modest” increase with about 500 institutions joining in the last six months.

Adding to insurers unease is lawmakers’ response ​​to this wave of sexual abuse cases.

Many states, including Oregon, have extended the statute of limitations on sexual abuse so that victims have longer to take action. Oregonians can now file a childhood sexual abuse civil suit any time before their 40th birthday or even beyond that if they can show they just became aware of the abuse or its impact.

It is unclear ​what insurance Catlin carries, what it covers and its limits. School officials​ declined to give any specifics about their insurance coverage.

“​We are working closely with our insurance carriers and anticipate our coverage will help defray the costs associated with litigation,” school officials said in a written statement.

Powerful connections

As private schools go, Catlin has relatively deep pockets. In its 2017 tax return, the most recent report publicly available, Catlin listed $70.4 million in total assets and a $36.9 million endowment. Whether Catlin could use those endowment funds to pay abuse claims is unclear. Endowment funds are often restricted to certain specific uses.

Catlin finished the years 2014-2017 with a financial deficit, according to federal nonprofit filings. The annual deficit actually grew each year from $357,813 in 2013 to $1.2 million in 2017. Just like a private company, it’s not illegal or improper for a non-profit to run a deficit.

The school declined comment other than to say accounting rules differ for non-profits and “a deficit on the 990 does not indicate the school is operating at a loss.”

So far, current students and their parents seem to be standing by the school.

“Obviously, our recent investigation, and subsequent media coverage, has put a spotlight on a dark chapter of the school’s history,” Catlin officials said in the written statement issued Thursday. But, “as of today, no parents have notified us that they are withdrawing or plan to withdraw because of our investigation.”

Catlin charges $34,000 a year in tuition. Parents of current students say they’ve been warned to expect tuition increases in the coming years, as is common for private schools.

“Tuition dollars will continue to support the education of our students, not litigation,” the school said in its written statement. “As a non-profit, we also rely on donations to help fund financial assistance and other programs, and those funds will continue to go towards education only.”

In the end, Catlin’s connections to Portland’s rich and powerful could prove vital in its efforts to survive the sexual abuse storm. If Jordan Schnitzer is representative of that group, Catlin has nothing to worry about. Schnitzer, a real estate developer, graduated from Catlin in 1969 and then sent his daughters there.

“What’s been reported is a surprise, a heartbreaking surprise, to me and my classmates,” he said. “But we should put it in context. This school has done an amazing job and deserves credit for being transparent.”

Schnitzer also lamented the press coverage of Catlin and the portrayal of teachers he idolized.

“I thought the world of Dick Shoemaker,” he said. “I’m not rationalizing or justifying his behavior. But he’s not here to defend himself.”