Baltimore Archdiocese urged by sex abuse survivors to accept proposed reorganization plan, $100 million settlement
The Archdiocese of Baltimore is being urged by sex abuse survivors and their attorneys to accept a proposed reorganization plan that would allow for a $100 million settlement, attorneys said.
The settlement, proposed by Hartford Insurance, would only be provided once the archdiocese decides on a reorganization plan, according to the attorneys representing some survivors.
The proposed plan, filed in the U.S. Bankruptcy Court on Friday, April 3, also has to be approved by the court.
The offer comes nearly two and a half years after the archdiocese filed for bankruptcy, just before a number of sex abuse allegations were filed under Maryland's Child Victims Act.
"The archdiocese continues to be committed to the process and working with the Survivors Committee and others to achieve an agreed-upon resolution of these reorganization proceedings," the Archdiocese of Baltimore said in a statement.
Attorneys, survivors react to proposal
Jonathan Schochor, one of the attorneys representing survivors, called the plan "significant."
"We're asking for the court to treat the Archdiocese of Baltimore with its parishes as one entity. What it does is it would help us resolve this with everyone, because we know that the parishes did not go into bankruptcy," Schochor said.
Teresa Lancaster, David Lorenz and Frank Schindler said Tuesday the proposal gives them hope. They feel the archdiocese has been slow in going through this process. They're also members of the Abuse Survivors Coalition.
"The bottom line is people have died waiting for this, and the church needs to be held accountable. They need to do it now," Lancaster said. "With this plan introduced, it outlines everything that should've been done months ago."
When WJZ Reporter Dennis Valera read the archdiocese's statement to Lancaster, Lorenz and Schindler outside of the U.S. District Court in Downtown Baltimore, they all scoffed in response.
"Each day that survivors have been denied justice is another day of re-traumatization. Each delay has exacted an enormous emotional and physical toll on survivors," Schindler said.
All three said they hope the other insurers involved in the bankruptcy come forward with settlements, too, matching what Hartford Insurance is offering. While it won't take all the pain away, they said it could still help.
"It can help survivors get the help they need and start on a path of recovery," Lorenz said.
Last Thursday, a U.S. Bankruptcy judge put a preliminary injunction on the archdiocese's Seek the City plan, which aims to consolidate parishes and worship sites, after survivors' lawyers argued that assets from that plan need to be made available for survivors.
An evidentiary hearing for that is scheduled for April 15.
Sex abuse claims
In 2023, the Maryland Attorney General found that more than 600 children were abused under the church's supervision.
The victims filed a lawsuit once the Child Victims Act was signed into law, which eliminated the statute of limitations on sex abuse cases. The lawsuit claimed that the church was responsible for more than 1,000 sexual assault claims and said the institution had avoided compensating victims. The new law allowed for a flood of lawsuits, with more than 900 against the archdiocese.
The church initially attempted to use a charitable immunity clause, which would have protected the institution from having to pay survivors. However, in December 2025, they decided not to use the measure as they prepared for a possible trial.
Now, the case is reliant upon mediation, and survivors are seeking to get the bankruptcy case dismissed.
"By filing Chapter 11, the Archdiocese is seeking to provide the most orderly process in which victim survivors can be compensated, including from its insurance policies, while maintaining the mission and ministry of the church," the Archdiocese of Baltimore previously told WJZ.
Each survivor is seeking about $1 million.
According to court documents, the church has about $100 million in assets.
In October 2025, the archdiocese proposed a $33 million fund to compensate victims $33,000 each, along with insurance funding.
Survivors rejected the offer, calling it insulting.
Ongoing bankruptcy proceedings
According to attorneys for the survivors, the archdiocese's failure to propose a reorganization plan is keeping the bankruptcy case from moving forward.
"The diocese needs to accept this plan to move the proceedings along and provide much-needed relief to the survivors that have filed a claim," attorneys said in a statement.
They are also urging other insurance companies to follow Hartford Insurance in proposing settlement values.
