The bankruptcy case of the Archdiocese of Baltimore advanced toward mediation on Monday as lawyers representing the Catholic church, its insurers, and a committee of sexual abuse survivors reached a tentative agreement on negotiation terms.
The agreement hinges on client approval regarding the archdiocese’s potential withdrawal of its breach-of-contract lawsuit against insurers and the survivors’ role in a possible refiling.
U.S. Bankruptcy Judge Michelle M. Harner commended the lawyers for developing “a mediation structure that’s acceptable to all” after they resolved their differences before the scheduled court hearing.
The mediation process will involve negotiations on financial contributions from the archdiocese and its insurers to settle survivor claims, as well as a church reorganization plan aimed at preventing future clergy sexual abuse.
Under the tentative agreement, insurers can jointly nominate a third mediator, subject to potential challenges, in addition to the two proposed by the church and survivors committee.
The bankruptcy declaration on September 29 came just before Maryland’s Child Victims Act took effect, removing time limits for childhood sexual abuse lawsuits. This followed a state report revealing widespread abuse within the diocese.
Hundreds of survivor claims have been filed, though the exact number remains undisclosed. Archbishop William Lori has recently aligned with the survivors committee leader, but tensions with insurers persisted.
The archdiocese’s lawsuit against insurers for failing to cover abuse claims was a point of contention. The tentative agreement includes dismissing this complaint, with the option to refile and grant the survivors’ committee standing in any future case.
Insurance policy applicability and coverage amounts will be addressed during mediation, with both the church and survivors’ committee employing expert insurance lawyers.
Edwin Caldie, representing the survivors’ committee, expressed optimism about the mediation process, citing increased trust and cooperation among parties.