Archdiocese of Baltimore files ‘form plan’ for bankruptcy settlement, proposes $33 million contribution

Updated Oct. 3, 2025, 6:15 p.m., to add information.

The Archdiocese of Baltimore filed a form plan for reorganization in its Chapter 11 bankruptcy, which sets a proposed amount of contribution from the archdiocese and affiliated organizations, including parishes and schools.

The plan, filed with the U.S. Bankruptcy Court Oct. 3, proposes the archdiocese and affiliated entities will contribute $33 million to a fund to compensate victim-survivors of sexual abuse of minors by clergy and other employees over the years. With expected contributions from insurers, the fund is anticipated to total hundreds of millions of dollars.

“The form plan confirms the archdiocese’s longstanding commitment to contribute to the healing of those harmed, through monetary compensation, pastoral accompaniment and strong and effective child protection policies,” the archdiocese said in a media release Oct. 3.

The Archdiocese of Baltimore filed for Chapter 11 reorganization Sept. 29, 2023, in anticipation of the implementation of the Child Victims Act, passed by the Maryland Legislature in early 2023, which removed any statute of limitations for civil damages in abuse cases and capped claims at $1.5 million for private organizations, and $890,000 for governmental entities. 

A 2025 amendment to the CVA, passed by the General Assembly and signed by Gov. Wes Moore, reduced the cap for civil damages in cases of sexual abuse of a minor from $890,000 for public institutions to $400,000; for individuals or private institutions – such as parishes, churches and private schools – the amendment reduced the cap on non-economic damages, such as for pain and suffering, from $1.5 million to $700,000. The amendment also clarified that the limit applies per claimant versus per incident. The new caps apply to suits filed after May 31, 2025.

The goal when the archdiocese filed for reorganization was to both equitably compensate victim-survivors of child sexual abuse and ensure the local church can continue its mission and ministries.

In a media release, the archdiocese said, “The archdiocese’s contribution to the settlement will be made regardless of the court’s determination of whether charitable immunity remains a valid defense.” This is a critical point, because if charitable immunity applies, the archdiocese and its insurers could argue that it has no liability in such cases. 

According to the news release, “The form plan proposes that the Archdiocese of Baltimore and affiliated Catholic entities, including parishes and schools, would contribute a combined $33 million to the Survivors Compensation Trust plus all insurance assets available to provide coverage for claims made by victim-survivors to settle the claims filed in bankruptcy court. While the Archdiocese of Baltimore continues negotiations to monetize the insurance assets to be contributed, the archdiocese believes the insurance assets would provide hundreds of millions of dollars in recoveries for victim-survivors.”

The statement from the archdiocese also said, “The archdiocese looks forward to continuing conversations with the members of the Official Committee of Unsecured Creditors and insurers as they review the proposed plan with our shared interest in bringing healing to all who have suffered.”

Archbishop William E. Lori said, “While there is still much work to do, I am hopeful this form plan will aid us in ongoing conversations and will allow us to move forward toward a quicker resolution to these proceedings. 

“As the court process continues, with every day that passes, the suffering of victim-survivors is prolonged, which is why we must continue to act with urgency until the settlement is reached so that victim-survivors can receive compensation as soon as possible,” the archbishop said.

The archdiocese has taken many steps since the early 1990s to respond to sexual abuse of minors by clergy and other employees. It was one of the first dioceses in the country to have a public policy regarding abuse by clergy. After the adoption by the U.S. bishops of the Charter for the Protection of Children and Young People and its accompanying norms in 2002, the Archdiocese of Baltimore was one of the first in the country to publish a list of credibly accused clergy. The list has been updated several times.

“Prior to the (bankruptcy) filing, the archdiocese took deliberate steps over more than three decades to eradicate the scourge of child sexual abuse from parishes, schools and ministries and to provide care and support to those harmed,” the news release said. 

Before the bankruptcy filing, a total of 301 victim-survivors shared $13.2 million in compensation and counseling assistance, including $6.8 million that was paid toward 105 voluntary settlements under a mediation program led by retired non-Catholic judges. “Among other measures, child protection efforts include the archdiocese’s zero-tolerance policies, the public disclosure of credibly accused priests, extensive training, and requirements that all clergy and employees comply with state law on reporting suspected abuse to law enforcement authorities,” the media release said.

The filing of the form plan notes that the Catholic Family Contribution of $33.1 million represents an average of the payments to claimants who used the earlier voluntary mediation program.

The Oct. 3 filing notes, “The Debtor has proposed to make a substantial contribution to the resolution of Survivor Claims, in addition to the assignment of all insurance assets available to pay Survivor Claims (which the Debtor believes provide hundreds of millions of dollars in potential recoveries for Survivors above the Catholic Family Contribution). …”

Judge Michele M. Harner, who oversees the case in bankruptcy court, approved last year a framework plan for mediation. The court-appointed mediators – one each nominated by the archdiocese, the creditors committee and the insurance companies – are Robert J. Faris, Brian J. Nash and Marc Isserles.

Once a final settlement plan is completed, the mediators will determine the amount each claimant will receive.

The next court hearing in the case is scheduled for Oct. 6.

Email Christopher Gunty at editor@CatholicReview.org

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