New York Archdiocese offers $800 million to settle sex abuse survivor claims

NEW YORK (WABC) -- The Archdiocese of New York is proposing paying $800 million dollars to settle claims from 1,300 alleged sex abuse survivors.

The proposed settlement comes months after the church sold off valuable properties, laid off staff and cut its operating budget to come up with the funds. This marks one of the largest U.S. clergy payouts.

Attorney Jeff Anderson represents 250 abuse victims. He says their reaction to the settlement proposal has been mixed.

"For some it is a real relief to know that there is some reckoning and some responsibility being taken. For others, there's just anger because there is no way the pain can be alleviated," said Anderson.

Under the proposed settlement, the $800 million will be paid into a trust for survivors over 15 months, with a $615 million initial payment. Accusers would have a $250 quick pay option. The church has also agreed to release documents regarding offenders and maintain a public list of accused clergy.

New York Archbishop Ronald Hicks issued a statement expressing cautious optimism, saying, in part, "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. 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."

Lawyers for some accusers have reportedly urged clients to accept the deal because of concerns the archdiocese is in danger of filing for bankruptcy.

Anderson would not comment on that.

"If there isn't, a deal to be made, then the state will go back to litigation and begin to start the trials that are scheduled, in the weeks and months ahead," he added.

The New York Archdiocese has also been in a bitter dispute with its longtime insurer, Chubb, claiming it was attempting to evade its 'legal and moral obligation to pay out claims to abuse victims.'

Attorneys for those victims say this proposed settlement allows accusers to pursue legal action against the Archdiocese of New York's insurance companies.