The Brooklyn Diocese has agreed to negotiate a “global” settlement to compensate 1,100 people who have accused priests and staffers of child sex abuse — a figure that will likely run into hundreds of millions of dollars.
The payouts for the cases — 90% of which go back more than 50 years to the 1970s and 60s — will be a huge financial blow to the diocese, forcing them to unload real estate to raise the settlement money.
“To facilitate this global resolution, the Diocese is cost-cutting and setting aside significant funds to compensate victim-survivors. The process of marshalling these funds entails difficult financial choices, but the Diocese is committed to fairly compensating all meritorious claims,” Bishop Robert Brennan said Thursday in a “Dear brothers and sisters” letter to the church faithful.
The Diocese’s Independent Reconciliation and Compensation Program, which began in 2017, has already paid over 500 victim-survivors more than $100 million.
Brennan said the pay out cash will not come from parishioners.
“The funds used to make these settlements, and future ones, have not and will not come from your donations to the Diocese or from your parish offerings,” Brennan said..
The diocese, which also includes Queens, serves 1.3 million Catholics.
“We will endeavor to resolve expeditiously all meritorious claims, and to avoid the time, expense, and emotional strain for victim-survivors that would be caused by individual trials,” Brennan said.
“As our global resolution process moves forward, we continue to pray for the victim-survivors, their families, and all others impacted by sexual abuse.”
The neighboring Archdiocese of New York in December agreed to negotiate a settlement to compensate 1,300 people who have accused priests and staff lay members of child sex abuse — and is raising $300 million to cover the cost.
The Archdiocese of New York — which includes Manhattan, Staten Island, The Bronx and the northern suburbs — also is battling in court with its insurer, Chubb, over payments to alleged sex abuse victims.
The Brooklyn Diocese’ lawyers have spoken with the top attorneys representing hundreds of victim-survivors to begin the settlement process, Bishop Brennan said.
It also has retained the firms of Sullivan & Cromwell LLP, Anderson Kill P.C., and Alvarez & Marsal as legal and financial advisors.
The parties have agreed to tap retired Los Angeles Judge Daniel Buckley and lawyer Paul Finn as neutral mediators to facilitate the resolution process.
Buckley mediated a global settlement of sex abuse claims filed against the Archdiocese of Los Angeles. He has also recently been engaged to resolve the Child Victims Act claims filed against the Archdiocese of New York.
Finn has mediated hundreds of sex abuse claims brought against the Archdioceses of Boston and Milwaukee.
In New York, the Child Victims Act of 2019 allowed child sex abuse survivors to bring a civil lawsuit against abusers and institutions that protected them until the survivor reaches the age of 55. It also opened a one-year window for child sexual abuse victims of any age to bring lawsuits for abuse that occurred even decades ago.
Other Catholic dioceses, including Albany, Rockville Centre and Rochester, filed for bankruptcy protection under the crush of sex abuse claims.
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