Archdiocese of New York finalizes $804 million settlement for abuse survivors

The Archdiocese of New York signed an $804.25 million settlement to resolve more than 1,300 claims of sexual abuse by clergy. This agreement addresses legal actions brought under the New York state Child Victim’s Act and other laws.

Archbishop Ronald A. Hicks announced the deal to parishioners, stating the goal is to provide a fair resolution and promote healing for those harmed. Jeff Anderson, an attorney representing the claimants, described the settlement as a step toward accountability and justice.

The archdiocese and several parishes will distribute the funds in two installments, with the first payment of approximately $619.25 million scheduled for this year and the second payment arriving 15 months later. To fund the compensation, the archdiocese sold assets including its former chancery in Manhattan and a ground lease under the Palace Hotel. The organization also moved staff into smaller offices, reduced its budget by 10 percent, and conducted layoffs.

While the archdiocese intended to avoid asking parishes for money, the final agreement includes financial reserves from some parishes and the sale of unused properties. This settlement allows the archdiocese to avoid filing for bankruptcy, a move other dioceses in the United States have used to manage similar claims. Survivors have the option to choose an expedited payment or proceed through an individual claim evaluation process. About one-third of the 1,298 claimants chose a quick-pay option of $250,000.

The agreement also requires the church to publish the names of offenders who have been credibly accused of abuse. Additionally, survivors and a liaison committee are involved in ongoing litigation against Chubb Insurance Group and Century Indemnity Co. over whether insurance policies cover the church for its handling of past abuse.