Archdiocese in New Mexico Hit by Sex Abuse Settlement Agrees to Terms in Chapter 11

The Archdiocese of Santa Fe in New Mexico entered into an agreement of terms to settle its Chapter 11 reorganization case.

“The Church takes very seriously its responsibility to see the survivors of sexual abuse are justly compensated for the suffering they have endured,” Most Reverend John C. Wester, Archbishop of Santa Fe, said in a statement. “It is our hope that this settlement is the next step in the healing process of those who have been harmed.”

The settlement terms will be incorporated into a plan to be filed with the bankruptcy court and processed according to the applicable rules and procedures.

“It is our sincere hope that all parties will see the wisdom of the settlement and help bring the bankruptcy case to a conclusion for the good of the survivors of sexual abuse, the good of the Church, and Catholics throughout the archdiocese,” Wester added.

In the total amount of $121.5 million, the settlement will be funded by the archdiocese, the parishes within the archdiocese, other Catholic entities, and the archdiocese’s insurance carriers. The settlement funds will be used to compensate the survivors of sexual abuse. It will not be used for archdiocesan lawyers’ fees and other expenses of the bankruptcy case, which will be paid from other funds.

The parishes have collectively agreed to contribute significant amounts to help the archdiocese fund the settlement plan. These contributions will also help relieve them of potential individual financial burdens from any current or future lawsuits. Other parties have also agreed to contribute in return for the same protections.

The settlement includes many critical non-monetary actions, such as creating an archive of information documenting the abuses within the church community, prayer services, and meetings with survivors of sexual abuse.