(The Center Square) — The Archdiocese of New York said Monday it will negotiate a “global” settlement to resolve claims of people who said they were sexually abused as children by Catholic priests and staff members.
The announcement was made in a public letter by Cardinal Timothy Dolan, posted on the archdiocese’s website, who said church leaders had met in recent weeks with lawyers to discuss terms for a settlement with more than 1,300 accusers. Details of the final settlement would be worked out in negotiations, he said.
“It is my hope and prayer that we can all work together to achieve a global settlement and provide victim-survivors with the most financial compensation possible to help heal these wounds,” Dolan said.
Dolan said the church expects to set aside about $300 million to provide compensation to survivors of sexual abuse. He said the archdiocese has made “difficult decisions” to create the fund by laying off staff, reducing its operating budget by 10% and selling off church-held real estate assets, including its former headquarters on First Avenue in Manhattan, earlier this year.
He said both the archdiocese and victims groups have agreed to hire retired Judge Daniel J. Buckley as a neutral mediator to hammer out a final settlement. Buckley helped successfully negotiate a global settlement with the Archdiocese of Los Angeles and more than 1,000 victim-survivors. The church has also hired Proskauer Rose LLP and FTI Consulting as our legal and financial advisors.
“Their expertise will help us identify a solution that delivers the greatest possible compensation to victim-survivors while allowing the Archdiocese to continue its vital ministries for the good of our parishes, families, and communities,” Dolan wrote.
Meanwhile, the Archdiocese of New York is still embroiled in a legal fight with Chubb Insurance Companies over the general liability insurance coverage it took out years ago for itself, parishes, schools and charitable organizations, including coverage for sexual misconduct claims.
“Despite accepting millions in premiums from the archdiocese, Chubb has steadfastly refused to honor the policies it issued,” he said.
Dolan said the church has “worked with determination to strengthen and enhance procedures that ensure our children are protected, while also doing all in our power to bring healing and justice to victim-survivors and treat them with compassion and respect.”
“As we have repeatedly acknowledged, the sexual abuse of minors long ago has brought shame upon our Church,” he said. “I once again ask forgiveness for the failing of those who betrayed the trust placed in them by failing to provide for the safety of our young people.”
If approved, the New York settlement would be the latest by the Catholic Church to resolve claims that for decades it shielded priests and church staff who were accused by victims of sexually abusing them when they were minors.
Last week, a federal bankruptcy judge approved the Roman Catholic archdiocese of New Orleans’ proposal to pay $230 million to about 600 survivors of sexual abuse by the church’s priests, deacons and other staff.
More than 40 other Catholic institutions have filed for bankruptcy protection as they struggle to pay settlements with victims to resolve prior clergy abuse complaints, according to data compiled by Penn State University’s law school.
