$660 million will settle church abuse case

July 23, 2007 by

Negotiations have produced a landmark $660 million settlement between the Roman Catholic Archdiocese of Los Angeles and more than 500 alleged victims of clergy abuse has concluded, with insurers picking up a large part of that tab.

Attorneys from both sides, as well as Cardinal Roger Mahony, entered a formal settlement agreement with Judge Haley Fromholtz. The deal marks the end of more than five years of negotiations.

Mahony, leader of the country’s largest archdiocese, apologized to the hundreds of clergy sex abuse victims who will receive a share of the settlement.

“There really is no way to go back and give them that innocence that was taken from them. The one thing I wish I could give the victims … I cannot,” he said.

“Once again, I apologize to anyone who has been offended, who has been abused. It should not have happened and should not ever happen again.”

Mahony said the settlement will not have an impact on the archdiocese’s core ministry, but said the church will have to sell buildings, use some of its invested funds, and borrow money. He said the archdiocese will not sell any parish properties or schools.

The settlement also calls for the release of priests’ confidential personnel files after review by a judge.

The deal settles all 508 cases that remained against the archdiocese, which also paid $60 million in December to settle 45 cases that weren’t covered by sexual abuse insurance.

The archdiocese will pay $250 million, insurance carriers will pay a combined $227 million and several religious orders will chip in $60 million. The remaining $123 million will come from litigation with religious orders that chose not to participate in the deal, with the archdiocese guaranteeing resolution of those 80 to 100 cases within five years, said Michael Hennigan, archdiocese attorney. The archdiocese is released from liability in those claims, said Tod Tamberg, church spokesman.

Plaintiffs’ attorneys can expect to receive up to 40 percent of the settlement money — or $264 million — for their work.

The settlements push the total amount paid out by the U.S. church since 1950 to more than $2 billion, with about a quarter of that coming from the Los Angeles archdiocese.

Previously, the Los Angeles archdiocese, its insurers and various Roman Catholic orders had paid more than $114 million to settle 86 claims.

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