New York Archdiocese Moves Toward $300 Million Mediation for Survivors of Clergy Sexual Abuse

Photo: St. Patrick’s Cathedral in New York City; via Wikipedia.

The Roman Catholic Archdiocese of New York announced it is moving forward with a mediation process aimed at resolving roughly 1,300 sexual abuse claims brought by people who say they were abused as minors by clergy and lay staff, the New York Times reported today. Church officials stated they are seeking to raise at least $300 million through cost-cutting measures and the sale of major real estate assets, including their longtime headquarters in Manhattan.

Representatives for survivors confirmed that while no settlement amount has yet been finalized, the mediation represents the first formal step toward a potential global resolution. A plaintiff’s attorney representing hundreds of survivors said the process marks the first time the archdiocese has shown a willingness to engage in structured negotiations to resolve the claims. The attorney cautioned that the proposed $300 million figure could change based on the outcome of mediation.

Cardinal Timothy Dolan announced that both sides have agreed to appoint a retired California judge as a neutral mediator. The same mediator previously helped oversee a large settlement involving the Archdiocese of Los Angeles and more than 1,000 survivors. In a message sent to Catholics across New York, Cardinal Dolan acknowledged that the sexual abuse of minors had brought lasting harm and stated that the archdiocese accepts responsibility for those failures.

The announcement comes as Catholic dioceses across the country continue to confront the legal and financial fallout of abuse claims filed under look-back window laws. In New York, the Child Victims Act and the Adult Survivors Act temporarily reopened the statute of limitations, allowing long-silenced survivors to file civil legal claims. Since the passage of those laws, approximately 1,700 claims have been filed against the Archdiocese of New York alone, contributing to bankruptcy filings by six of the eight Catholic dioceses statewide.

To generate funds for a future settlement, church officials said they have reduced their operating budget by 10 percent, eliminated staff positions, and sold several real estate holdings, including their headquarters building on First Avenue, which reportedly sold for more than $100 million. Church leadership also stated that ongoing litigation with their insurer has complicated settlement efforts. The insurer has declined to fund settlements tied to concealed criminal conduct, arguing that its policies were designed to cover accidents, not knowingly concealed crime.

The New York announcement coincided with a separate $230 million settlement approved in bankruptcy court for survivors connected to the Archdiocese of New Orleans. That agreement covers hundreds of survivors and signals a broader trend of dioceses turning to mediated global settlements as thousands of abuse claims continue to move through the courts nationwide.