NY Archdiocese Settlement Proposes $800M Payout for Child Sex Abuse Lawsuits

Archdiocese still in legal battle with insurer, who says it does not have to cover the church’s liability since it hid the abuse for decades.

The New York Archdiocese has agreed to a tentative settlement that could resolve child sexual abuse lawsuits filed by 1,300 current or former parishioners who say they were molested by priests and staff over the last several decades.

New York became one of the first states to waive statute of limitation laws in February 2019, allowing survivors of child sexual abuse to file civil claims against those who assaulted them, giving them a two-year window to file, no matter how long ago the incidents occurred.

By the August 2021 deadline, about 10,000 child sexual abuse lawsuits had been brought, with many targeting the Catholic Church, as well as state-run juvenile facilities, the Boy Scouts of America and other large institutions. Most of the defendants were accused of taking measures to shield abusers and their institutions’ reputations from scrutiny for years.

Other states followed with various versions of the same law, including California, New Jersey and others. Some states went even further, with Maryland’s Child Victims Act eliminating the statute of limitations on such cases completely.

Since the passage of these new laws, several Catholic Archdiocese have declared bankruptcy, indicating that the extent of liability they face for child sexual abuse claims exceeds available assets.

New York Church Sexual Abuse Settlement

On May 1, Ronald Hicks, the archbishop of New York, sent out a letter to parishioners announcing a proposed $800 million settlement agreement with plaintiffs who have filed claims against the archdiocese. In the letter, the archbishop indicates that the deal comes following months of negotiations.

The announcement arrived several months after the archdiocese said it was setting aside more than $300 million to resolve the litigation. That leaves a $500 million shortfall from what was originally earmarked for the agreement. However, in the latest letter, Hicks indicates that the archdiocese has sold off most of its real estate to raise the money.

The church estimates that each plaintiff would receive about $215,000.

“As Pope Leo XIV reminds us, we cannot close our eyes or our hearts to the victim-survivors, and indeed the Archdiocese of New York continues our prayerful work to recognize and affirm the pain these individuals have experienced, and do all that we can to promote healing and reconciliation. We must also acknowledge that suffering continues for many who continue to live with this trauma each day, and recommit ourselves to ensuring that these horrific misdeeds are never again committed in our Church.”

– Archbishop of New York, Ronald Hicks

Hicks states that attorneys are currently educating plaintiffs about the settlement. He also says he hopes to achieve full participation in the settlement and will work to ensure plaintiffs receive their share of the deal as quickly as possible.

Previous reports indicated that reaching a New York church sex abuse settlement was complicated after the archdiocese’s former insurer, Chubb, refused to cover the church’s liability. The archdiocese is pursuing a lawsuit against the insurer to force it to cover at least some of the settlement costs.

Chubb officials have argued that they are not responsible for covering the lawsuit because the church made itself ineligible for coverage by covering up the abuse for decades.

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