The Archdiocese of New York has reached a preliminary agreement to pay more than $800 million to some 1,300 people who claim to have suffered sexual abuse by clergy and lay leaders, according to The New York Times on Saturday. The plaintiffs’ attorneys announced late Friday that the deal was closed and had the approval of all those affected, but the archdiocese’s spokesperson, Joseph Zwilling, responded that same night that the parties were still working to finalize it: “We’re not there yet.”
According to the New York newspaper, the agreement provides each plaintiff with a minimum one-time payment of $250,000, an amount that could increase once the severity of each case is reviewed. In addition, the archdiocese would commit to publishing on its website the names of clergy and lay leaders against whom credible allegations exist and to keeping that list updated. The Times adds that the settlement could allow the archdiocese to avoid filing for bankruptcy.
To persuade the few plaintiffs who were reluctant to accept, the archdiocese negotiated with one of its insurers to improve the terms: $20 million to be distributed equally among them. The plaintiffs’ attorneys warned them that, without an agreement, the archdiocese would likely end up filing for bankruptcy, which would reduce compensation and prolong the litigation for years. Among the holdouts, the Times reports, are heirs of deceased complainants.
The proposal was made public on May 1 of this year, when the archdiocese offered about $800 million to settle the claims, according to NY1. Talks began under Cardinal Timothy Dolan and have continued with Archbishop Ronald Hicks, who took possession of the see in February. The archdiocese has publicly stated that its fund for these cases amounts to about $300 million, and the agreement would not extend to religious orders not under its jurisdiction.
The case joins other major settlements in the United States. In June of this year, the Archdiocese of San Francisco agreed to pay $395 million to more than 530 people, and in 2024 the Archdiocese of Los Angeles settled for more than $1 billion. The volume of claims has led several U.S. dioceses to file for Chapter 11, such as the Diocese of El Paso, whose case was already reported by InfoVaticana.