Cardinal Dolan moves to resolve 1,300 abuse claims while battling insurer Chubb over coverage
The Archdiocese of New York announced it will raise at least 300 million dollars to settle lawsuits brought by approximately 1,300 survivors who allege they experienced sexual abuse by clergy and lay staff members. Cardinal Timothy Dolan announced the settlement in December, marking one of the largest payouts in U.S. Catholic Church history. The archdiocese is funding this commitment through staff layoffs, a 10 percent reduction in its operating budget, and the sale of significant real estate assets.
The Scope of the Crisis
The Archdiocese of New York, which encompasses Manhattan, Staten Island, the Bronx, and the city’s northern suburbs with 2.5 million Catholics, has struggled to respond to clergy sexual abuse claims since New York State passed the Child Victims Act in 2019 and the Adult Survivors Act in 2022. These laws opened a filing window allowing survivors to bring cases previously barred by statutes of limitations.
The Settlement Process
The archdiocese is working with retired California Judge Daniel Buckley, who previously mediated the Los Angeles Archdiocese’s settlement with over 1,000 victims. The Los Angeles settlement reached 880 million dollars, making it one of the largest church abuse settlements on record. The settlement approach allows for rapid resolution of cases while avoiding lengthy court proceedings that could extend for years and retraumatize survivors.
The Insurance Dispute with Chubb
A significant impediment to the settlement has been the archdiocese’s protracted legal battle with its longtime insurer Chubb. Cardinal Dolan charged that despite accepting millions of dollars in premiums for general liability coverage that explicitly included sexual assault claims, Chubb has steadfastly refused to honor the policies it issued.
Chubb’s Defense
Chubb insurers argue that the policies only cover accidents and occurrences caused by negligence, not intentional or known conduct. The company alleges that sexual abuse by priests and lay staff members does not constitute an accident or negligent occurrence but rather intentional criminal conduct. Chubb further argues the archdiocese has not cooperated with insurance claim investigations and has engaged in cover-ups that violate policy conditions.
Difficult Financial Decisions
To fund the settlement, the archdiocese has made what Cardinal Dolan described as a series of very difficult financial decisions. The organization has reduced its operating budget by 10 percent, laid off staff members, and finalized the sale of significant real estate assets. The former archdiocesan headquarters on First Avenue in Manhattan was sold to a development group for approximately 100 million dollars.
Survivor Skepticism
Attorney Mitchell Garabedian, who represents dozens of victims against the New York archdiocese and previously represented Boston abuse victims, expressed skepticism that survivors should expect good faith settlement participation from the Catholic Church. He cited the institution’s poor historical track record in responding to abuse allegations and protecting children from predatory clergy.
Looking Toward Healing
The settlement represents an institutional acknowledgment of profound institutional failure. Cardinal Dolan stated that the archdiocese is seeking to ensure the greatest possible compensation to victim-survivors while attempting to continue vital ministries for parishes, families, and communities. The complexity of simultaneously admitting institutional guilt, compensating victims, and maintaining religious operations presents an ongoing tension that the settlement approach attempts to address.
A Legacy of Betrayal
The abuse crisis in the New York Archdiocese extends back decades. Victims allege that church leaders knew about abuse patterns, actively covered them up, and prioritized institutional reputation over protecting children. The settlement, while significant, represents a financial acknowledgment of harm that no monetary amount can truly remedy or repair. Read about clergy abuse at Bishop Accountability organization. Explore archdiocese information at Archdiocese of New York. Learn about victim support at SNAP survivors network. Understand insurance law at American Bar Association.
