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The Roman Catholic Diocese of Camden and its insurers have agreed to contribute an additional $180 million to a trust for survivors of clergy sexual abuse, reaching a sweeping deal Tuesday with a tort claimant committee representing more than 300 survivors. The agreement marks the final financial resolution of the diocese’s long-running bankruptcy case.

A Final Step After Years of Dispute

The diocese said the agreement completes its Chapter 11 case, which followed court approval in March 2024 of an earlier reorganization plan that created an $87.5 million pool for abuse claimants. The new trust — still subject to approval by the New Jersey Bankruptcy Court — will be funded by the diocese, its parishes and several insurers.

Camden Bishop Joseph A. Williams addressed survivors directly, calling the settlement a moment shaped by their courage. He apologized for what he described as a grave sin and a devastating betrayal, saying he could not erase the scars or restore what was lost, but pledged that the diocese believes survivors, is deeply sorry and committed to a different path forward.

Survivors’ Committee Hails Breakthrough

Lowenstein Sandler LLP partner Jeffrey D. Prol, counsel to the official committee of tort claimant creditors, said the deal eclipses earlier proposals, exceeding by more than six times the $26 million figure initially floated in the diocese’s 2021 reorganization plan.

Prol praised survivors’ perseverance, saying many waited years for compensation for profound harm. He added that resolving the bankruptcy could mark a step forward in their personal recovery journeys.

A Bankruptcy Battle Marked by Appeals

Before approving the 2024 Chapter 11 plan, U.S. Bankruptcy Judge Jerrold N. Poslusny Jr. rejected three earlier versions after insurers argued their contractual rights were not protected. Some carriers contended the third modified plan stripped those rights and sought a stay.

In March 2024, Poslusny froze implementation of the plan, saying he would not allow actions that could moot insurer appeals. By late April 2025, the diocese and the survivors’ committee asked to lift the automatic stay, noting appeals were pending before the U.S. Court of Appeals for the Third Circuit and that survivors had yet to receive any distributions.

The motion detailed months of failed mediation efforts with insurers, warning that lifting the stay could send claims back to state court, where the risks of litigation might push all sides toward resolution.

Insurers Push Back, Then Reconcile

Several insurers — including Interstate Fire and Casualty, Century Indemnity and underwriters at Lloyd's of London, known collectively as the London Market Insurers — opposed lifting the stay in May. They argued the move would not foster mediation and that the court lacked authority over issues on appeal.

Despite the resistance, the diocese, insurers and the survivors’ committee ultimately reconciled, culminating in Tuesday’s $180 million trust agreement.

Accountability and Compensation

Committee chair John Collins said the settlement cannot undo the harm survivors endured but represents meaningful progress toward accountability and equitable compensation. He said the committee’s priority throughout the case was ensuring survivors’ voices were heard and their interests protected.

Counsel for Interstate Fire declined to comment, and attorneys for other insurers were not immediately reachable.

Legal Representation

The tort claimant committee is represented by Jeffrey D. Prol, Brent Weisenberg, Michael A. Kaplan and Colleen M. Restel of Lowenstein Sandler LLP.
The diocese is represented by Richard D. Trenk and Robert S. Roglieri of Trenk Isabel Siddiqi & Shahdanian PC.

Interstate Fire is represented by Siobhain Minarovich of White and Williams LLP and a team from Parker Hudson Rainer & Dobbs LLP.
Century is represented by Stamatios Stamoulis of Stamoulis & Weinblatt LLC and attorneys from O'Melveny & Myers LLP.
The Lloyd’s underwriters and London Market companies are represented by counsel from Duane Morris LLP and Clyde & Co LLP.