Following months of negotiations, the Archdiocese of New York has offered $800 million to settle legal claims from 1,300 people who allege they were sexually abused as minors by priests and other lay staff.
The offer was made in a letter cited by The New York Times from Jeff Anderson and Trusha Goffe, two lawyers representing a group of 300 plaintiffs in the case.
Archbishop of New York, the Rev. Ronald A. Hicks, confirmed in a statement last Friday that the diocese has been working with the Plaintiff’s Liaison Committee, which represents a majority of the alleged victim-survivors, and hoped to reach a “truly global settlement” with buy-in from all survivors in the “fastest, most comprehensive manner possible, without the need for lengthy painful litigation for victim-survivors or bankruptcy proceedings for the Archdiocese.”
“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,” Hicks said.
In their letter to clients, Anderson and Goffe urged them to accept the offer, which would see each person receive at least $250,000 in compensation. If they fail to accept the deal, the attorneys warned their clients in the letter that the archdiocese will likely file for bankruptcy, leading to prolonged litigation and a reduction in any future settlement payments.
“The archdiocese needs all survivors to agree to the proposed settlement in order for it to go forward,” the letter states, according to the Times.
As part of the settlement, the archdiocese will also have to publicly share on its website information about the offenders and other “secret documents” that would help “better protect kids in the future,” the lawyers said. This includes maintaining a list of bishops, priests and deacons who have been “credibly accused” of abuse.
Reacting to the news of the proposed settlement, Staten Island resident Joseph Caramanno, 41, who alleged he was sexually abused at age 16 by a St. Joseph by-the-Sea priest in the early 2000s, told the Staten Island Advance that he was surprised by the offer.
“It does bring me a sense of relief knowing that, OK, this is where we are headed,” he told the publication. “I was surprised that it [the proposed settlement] came about so abruptly … this is the light at the end of the tunnel — six years of waiting and wondering coming to an end.”
Another plaintiff in the case told the Times on condition of anonymity, however, that he felt survivors were being bullied into accepting the terms of the agreement because there can be “no holdouts” before the settlement can move forward.
Hicks revealed that the settlement proposed by the archdiocese was mediated by retired California Judge Daniel J. Buckley, who negotiated a settlement between the Archdiocese of Los Angeles and victims of sexual abuse in October 2024. That settlement resulted in an $880 million payout, which was cited as the highest single sum paid by a diocese for abuse claims.
“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,” Hicks said. “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.”
To facilitate the offer, Hicks said, the Archdiocese of New York also “sold off the majority of its real estate holdings and made significant cuts to our staff and other operational expenses.”
In December, the archdiocese agreed to sell the land it owns beneath the historic Lotte New York Palace Hotel, New York’s first five-star hotel, for a staggering $490 million to help pay survivors of clergy sex abuse.
“These cuts have been painful for us, but they were necessary measures to secure the resources needed to compensate victim-survivors,” Hicks said.
“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,” he added. “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.”
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