Archdiocese Drops Charitable Immunity, Paves Way For Survivor Compensation

The Archdiocese of Baltimore agreed on December 15 not to assert charitable immunity in its bankruptcy proceeding, a concession survivors and their lawyers called pivotal in a case that has been ongoing for two years. The stipulation also prevents individual parishes or schools from filing their own bankruptcy cases while preserving that immunity unless they explicitly waive it, narrowing the legal battleground to the Archdiocese chapter 11 filing.

The practical stakes are large. About 900 survivors are part of the case. In October the Archdiocese offered roughly $33,000 per survivor, a package totaling about $29.7 million, an amount survivors described as insulting. Survivors have pressed for payments closer to $1 million each, which would imply aggregate claims near $900 million. Legal experts say the charitable immunity issue, if litigated, could have delayed resolution for months or years and might have limited recoveries.

Survivors viewed the stipulation as a breakthrough. Teresa Lancaster, a survivor and attorney, said she was "delighted, because we were prepared to go to court today." Jonathan Schochor, an attorney representing many of the roughly 900 claimants, said "it's off the table, finally." Schochor also noted that if the Archdiocese negotiates in good faith and insurance companies participate, a resolution could plausibly be reached within about a year.

The Archdiocese issued a statement reiterating a longstanding commitment to supporting abuse survivors, noting prior counseling and voluntary settlements. It said it entered Chapter 11 to ensure every court approved claimant receives compensation through a survivors trust funded by insurance proceeds and Archdiocese assets. The stipulation tightens focus on mediation and asset allocation as the mechanisms for funding that trust.

Mediation to date has not produced a deal, and the status conference in the bankruptcy case is scheduled for January 5. For Baltimore residents the outcome matters beyond individual payments. Any required contributions from Archdiocese assets or insurers could affect parochial operations and local service provision, while a structured settlement could provide a stable compensation pathway for survivors after two years of litigation. The next weeks will determine whether negotiators can translate the removal of charitable immunity into concrete progress toward a resolution.