The 3-year-old bankruptcy reorganization of the Archdiocese of Santa Fe, N.M., entered a critical phase yesterday, with insurance companies and clergy sex abuse claimants meeting in a confidential mediation with attorneys for the church, the Albuquerque Journal reported. At issue is how to resolve the impasse in reaching a universal settlement in the case, particularly how much the archdiocese’s insurance companies will contribute to a payout for nearly 400 people who have filed claims alleging they were sexually abused as children by priests and other clergy in the archdiocese. The mediation includes for the first time a nationally recognized mediator who was brought in during the recently settled chapter 11 bankruptcy reorganization filed by USA Gymnastics. The organization agreed last year to pay $380 million in the wake of revelations about former team doctor Larry Nassar, who was convicted in 2018 of sexually assaulting hundreds of girls and women. U.S. Bankruptcy Judge David T. Thuma appointed Austin-based mediator Paul Van Osselaer at the request of the Archdiocese of Santa Fe. Van Osselaer’s specialty is mediation and arbitration of insurance coverage issues, according to his website. The archdiocese and the nearly 400 sexual abuse survivors who filed claims last year tentatively agreed on a payout figure representing the archdiocese’s portion of any settlement, but that amount is confidential. Meanwhile, the archdiocese has been selling off what is considered “non-mission essential” property and other assets in Albuquerque, Santa Fe, and around northern New Mexico for months. Local parishes also have been asked to contribute up to $100,000 each.
