N.Y. archdiocese to negotiate settlements in abuse claims, will raise $300 million to fund them

(OSV News) -- Cardinal Timothy M. Dolan announced Dec. 8 that the Archdiocese of New York would be entering into mediation and taking steps to raise more than $300 million for sexual abuse settlements.

"We have made a series of very difficult financial decisions," Cardinal Dolan said in a letter to his flock posted by the archdiocese's online news outlet, The Good Newsroom.

Those decisions include reducing the archdiocese's operating budget 10% by laying off staff and selling several properties including the archdiocese's former headquarters in Manhattan. The cardinal said the archdiocese is working toward finalizing the reported $100 million sale of the building on First Avenue and the other properties.

The archdiocese confirmed to OSV News Dec. 9 that the money raised would go toward settlements with the 1,300 outstanding claims made by people who have said they were sexually abused by clergy and laypeople of the archdiocese.

"Our goal has always been, and continues to be, to resolve expeditiously all meritorious claims, provide the maximum amount of compensation to the greatest number of victim-survivors, and help them heal and move forward," Cardinal Dolan explained.

He said the archdiocese would be entering into mediation through a global settlement that would be determined by a third party, "without the financial and emotional stresses of lengthy court proceedings." Both sides chose retired Los Angeles County Judge Daniel J. Buckley as their neutral third party mediator.

The cardinal noted Buckley's record as the mediator who oversaw the $880 million global settlement between the Archdiocese of Los Angeles and more than 1,000 claimants who said they were sexually abused by clergy. So far this has been the largest clergy abuse settlement in the U.S.

"This darkness has cast a shadow even on our Church," Cardinal Dolan said. "As we have repeatedly acknowledged, the sexual abuse of minors long ago has brought shame upon our Church. I once again ask forgiveness for the failing of those who betrayed the trust placed in them by failing to provide for the safety of our young people."

Also in the Dec. 8 letter Cardinal Dolan announced that same day, parishioners had been informed that their church Immaculate Heart of Mary Parish filed for bankruptcy, which was "the only financial option available to them due to the prospect of imminent court proceedings." He said the parish had been named defendant multiple times in Child Victims Act (of New York) cases of alleged abuse by a former lay employee.

"Please join me in praying for the victim-survivors, their families, and all who have experienced the horror of abuse," Cardinal Dolan said in conclusion. "It is my heartfelt prayer that together as a family of faith, we may experience healing, hope, and light this Christmas season. I will keep you posted."