Two years after the Archdiocese of Los Angeles reached an $880 million settlement with men and women who survived childhood sexual abuse at the hands of Roman Catholic priests and clergy in their diocese, the Catholic Archdiocese of New York is following suit, agreeing to pay more than $800 million to its own sexual abuse survivors.
So far, the Catholic Church has paid out more than $5 billion in settlements, which has bankrupted at least 19 dioceses.
The archdiocese has been planning this for a while. Along with selling off buildings and laying off staff, including the sale of their New York headquarters for $100 million, the Archdiocese is suing its insurance company, Chubb.
The archdiocese claims that “even though we have paid them over $2 billion in premiums by today’s standards, [Chubb] is now attempting to evade their legal and moral contractual obligation to settle covered claims which would bring peace and healing to victim-survivors.”
Chubb insists that it is not obligated to settle several of these claims, some of which go back over 80 years, because the church knew about the abuse and did nothing to stop it, making the incidents ineligible for coverage.
A letter sent by the Archbishop of New York, Ronald Hicks, notes that the matter has been a painful process, but they hope that all parties accept. If so, they would each received around $215,000. It reads in part:
As you may have heard, the Archdiocese of New York and the Plaintiff’s Liaison Committee (PLC), which represents a majority of victim-survivors, have been working hard for several months to reach agreement on a global settlement of all sex abuse lawsuits. The parties have been working to create the framework of a comprehensive arrangement that will deliver compensation to victim-survivors faster and more efficiently than the traditional legal process. These discussions have been facilitated by Judge Daniel J. Buckley, a highly experienced neutral third-party mediator. Although much work remains to be done before a settlement can be finalized and consummated, I am cautiously optimistic about the path we are on.
Members of the PLC, attorneys who have long advocated for victim-survivors, have begun reaching out to counsel for all impacted individuals and it is our sincere hope to achieve full participation; we cannot begin to compensate victims until full participation is achieved. If a truly global settlement can be achieved, compensation will become available to victim survivors in the fastest, most comprehensive manner possible, without the need for lengthy painful litigation for victim-survivors or bankruptcy proceedings for the Archdiocese. Though I am new to the Archdiocese of New York, I recognize the immense effort that this Archdiocese has dedicated to supporting victim-survivors over the past decade. My predecessor, Timothy Cardinal Dolan, established the Independent Reconciliation and Compensation Program (IRCP) in 2016 which provided millions in compensation to victim-survivors. The Archdiocese has sold off the majority of its real estate holdings and made significant cuts to our staff and other operational expenses. These cuts have been painful for us, but they were necessary measures to secure the resources needed to compensate victim-survivors.
It cannot be denied that this has been a painful process – most significantly so for the victim-survivors and their families and loved ones who have suffered, in most cases, for decades. I pray that all of us, as the Family of God, will come together to support and affirm these individuals and take these next steps to bring about some healing and peace.
