Archdiocese of New York reports progress toward $800M abuse settlement as survivors weigh deal

An $800 million settlement proposal between the Archdiocese of New York and more than 1,300 clergy abuse claimants is putting a decades-long chapter of the Church's abuse crisis at a pivotal crossroads, with survivors weighing not only financial compensation but also new transparency measures aimed at accountability and healing.

The New York Times reported June 15 that every plaintiff must choose to accept the terms by a late June deadline for the settlement to move forward, and the law firms that are representing the majority of the plaintiffs have encouraged acceptance of the settlement rather than proceeding with the lawsuit and pursuing more money. According to the Times, the plaintiffs would most likely receive less money if the archdiocese files for bankruptcy.

Those terms are that the plaintiffs will receive a one-time lump sum of $250,000, and the archdiocese would need to publish on its website the names of the people credibly accused of abuse, update that list with any future allegations, and publicly make available at Iona College copies of documented cases of abuse, according to the Times.

“The fact that they are willing to make this settlement and not fight every case in court for the next however many years, tells me at least they’re willing to admit that they did something wrong, and hopefully, that also means that they’re not going to ever do it again,” Jim Clemente, 66, one of the claimants told the Times.

However, another plaintiff, who only spoke with the Times if they could remain anonymous because of concerns of pushback from the Church or other plaintiffs, had another perspective: whether it was equitable for each plaintiff to receive the same amount regardless of degree of abuse.

Archdiocesan officials say negotiations continue to make progress and remain focused on compensating survivors without prolonged litigation or bankruptcy proceedings.

The archdiocese has already sold properties and decreased staff by 10% this past year, the Times reported.

While plaintiffs consider whether to accept the proposal, the archdiocese says it remains optimistic that a final agreement can be reached.

“We continue to make good progress towards reaching a global settlement with victim-survivors,” Joseph Zwilling, the archdiocese’s communications director, said in the statement.

He said the archdiocese has held and is continuing to hold meetings with clergy and lay leadership at “a number of” parishes to discuss how much they would like their respective parishes to contribute to the settlement fund.

“The response from the parishes has been unanimously positive and supportive,” he said.

As those conversations move forward, the archdiocese says its priority regarding the settlement is securing a resolution that serves survivors while avoiding further litigation.

“We continue to look forward to being able to compensate victim-survivors in the fastest, most comprehensive manner possible, without the need for painful litigation for the victim-survivors, and to promote healing and reconciliation for them and their families and loved ones,” Zwilling said in the statement. “We are committed to doing so now with our own assets while seeking legal redress against our insurer, Chubb, to honor its insurance commitments to the archdiocese for these claims.”

The settlement’s terms also allow plaintiffs to sue Chubb.

The Insurance Journal reported in May that Chubb has refused to cover clergy sex abuse claims since state lawmakers passed the Child Victims Act in 2019. Chubb insurers, according to the article, say the claims aren’t covered because the incidents were caused by “intentional, known or expected occurrences,” not negligence.

>> New York archdiocese hopes to reach global settlement with clergy abuse survivors <<

“The Archdiocese of New York’s top priority should be compensating deserving victims,” a Chubb spokesman told the Times in a statement. “The insurance policies issued to the archdiocese covered accidents, not the admitted concealment of criminal sexual abuse of children over decades.”

Zeale News had also asked the archdiocese to explain its perspective on the transparency measures included in the proposed settlement and why they were considered important; to address what options remain available to the archdiocese if unanimous plaintiff approval is not obtained, as reported by the Times; and to share any additional message it would like Catholics across the nation to know.

Zwilling said the statement he provided represented the archdiocese’s only comment on the negotiations at this time.

If accepted, the settlement would rank among the largest Catholic Church abuse settlements in U.S. history and could conclude a years-long legal process that began after New York's Child Victims Act opened a window for survivors to file previously time-barred claims.