New Jersey Diocese settles with abuse victims for $87.5m

The Catholic Diocese in New Jersey has agreed to pay $87.5m (£67.04m) to hundreds of people sexually abused by the church.

In a first, the deal also paves the way for lawsuits against insurances firms that protect dioceses against charges of negligence.

It is one of the largest settlements involving the Catholic Church in the US, which has been accused of covering up decades of misdeeds.

The diocese has apologised.

The settlement funds will be distributed from a trust over the span of four years to approximately 300 victims of abuse, the diocese said.

It will also include child protection measures, which are still being finalised.

The diocese and attorneys for the victims have agreed to the settlement, but it must be still be approved by a judge because the diocese filed for bankruptcy in 2020 amid the Covid-19 pandemic and abuse disputes.

However, it was "pleased that the mediation process has led to a settlement," Bishop Dennis J Sullivan said.

"I pledge my continuing commitment to ensure that this terrible chapter in the history of the Diocese of Camden, New Jersey never happens again," he added.

Jeff Anderson, a lawyer who represents 74 of the victims, said the settlement was "unprecedented" for another reason.

Dioceses and archdioceses in the US are registered as corporations, meaning they purchase general liability insurance to protect them against charges of negligence. This often amounts to "tens of millions, or hundreds of millions, of dollars," Mr Anderson said.

In previous abuse settlements with US Catholic institutions, insurers have been part of the deal, and have often refused to pay the full amount sought by victims.

However, the New Jersey deal is the first time a church abuse settlement has not included insurers, meaning the firms can be sued separately.

Victims would therefore be able to bring cases to press for larger compensation. Mr Anderson called it "a pivot in the child protection movement" because of the potential to hold the church and their insurers to greater account.

Since the 1980s, US Catholic dioceses have amassed complaints from over 17,000 alleged victims and paid over $4bn in settlements.

The largest settlement saw the Archdiocese of Los Angeles pay some $660m to more than 500 victims in 2007.