The Catholic Diocese of Camden, New Jersey and several holdout insurers have agreed to add $180 million to a trust fund to pay claims of survivors of sexual abuse by the church’s clergy.
The $180 million is in addition to a settlement of $87.5 million between the diocese and the Official Committee of Tort Claimant Creditors that was approved by the Bankruptcy Court in 2024.
Several insurers appealed the 2024 court decision approving the $87.5 million plan and the case has been on appeal since then. Insurers had agreed to contribute $30 million but carriers expressed concerns about loopholes they said could end up costing them more than the agreed-upon $30 million. The bankruptcy judge had ordered a reworking of the plan to address some of those concerns but several insurers still opposed the plan.
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The parties entered into mediation. The diocese’s willingness to make an additional contribution to the trust above what was required by the earlier settlement was instrumental in reaching this final settlement with the insurers, according to Jeffrey D. Prol, counsel for the survivors’ committee and a partner at the Lowenstein Sandler law firm.
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The funds are to compensate about 324 survivors of sexual abuse.
“For the survivors of South Jersey, this day is long overdue and represents a milestone in their journey toward restored justice and the healing and recognition they have long sought and deserve,” said Camden Bishop Joseph A. Williams said in a statement.
The proposed settlement remains subject to U.S. Bankruptcy Court approval. Details have not yet been filed with the court.
The Camden diocese filed for Chapter 11 bankruptcy in 2020, after New Jersey extended the statute of limitations to allow claims for those alleging they were abused when they were children.
Prior to filing for relief, from 1990 to 2019, the diocese reached 99 settlements with abuse survivors for $10.1 million.
The diocese serves about 480,000 Catholics in 62 parishes across six counties. The district includes four missions, and the diocese is also affiliated with 22 elementary schools, five high schools and a pre-school daycare, in addition to various social service and charitable organizations.
Photo: The Cathedral of the Immaculate Conception in Camden, N.J., Wednesday, April 20, 2022. (AP Photo/Matt Rourke, File)
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