James R. Marsh, an attorney representing 40 plaintiffs against the archdiocese, told the news site Crain's New York Business that the lawsuit against insurers is "an unequivocal sign that the church is getting serious about dealing with its exposure."
"With the New York Archdiocese facing significant financial liability after decades of heartbreaking sexual abuse, it appears that it is beginning the process of addressing its financial challenges head-on," Marsh said. "That's just what this filing represents: an institution seeking to ensure that liability is fairly shared with its own insurance companies."
Michael Pfau, a lawyer representing 50 alleged victims in the New York archdiocese and 500 alleged victims around the state, told the New York Daily News it is not uncommon for insurance companies to initially balk at paying.
"This is a very positive step. We want to see the archdiocese secure coverage," Pfau said, characterizing the lawsuit as "an acknowledgement that the Archdiocese of New York has enormous potential exposure."
A law similar to New York's has been passed in New Jersey, and Catholic institutions could face a wave of lawsuits there.
In October 2016, Cardinal Timothy Dolan of New York launched The Independent Reconciliation and Compensation Program as an arbitration process for victims. The archdiocese presented the program as a way for abuse victims to secure compensation more easily than through the courts. The arbitration process was presented as having lower standards of evidence to secure compensation, though participants in the program waived their right to future civil action.
More than 200 individuals applied for compensation before a November 2017 deadline. Scores of individuals received compensation totaling in the tens of millions of dollars.
It was in this process that an alleged victim of then-Cardinal Theodore McCarrick came forward, the New Yorker magazine reported in April.
The New York archdiocese's further inquiry led to the June 2018 announcement that McCarrick, the former Archbishop of Washington, had been credibly accused of sexual abuse when he was a priest of the archdiocese.
In September 2018 the New York attorney general's office issued subpoenas to all eight Catholic dioceses in the state, asking for documents related to sexual abuse allegations and the Church's response to them.
At the time the New York archdiocese said it has shared with local District Attorneys "all information they have sought concerning allegations of sexual abuse of minor."
(Story continues below)
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"Not only do we provide any information they seek, they also notify us as well when they learn of an allegation of abuse, so that, even if they cannot bring criminal charges, we might investigate and remove from ministry any cleric who has a credible and substantiated allegation of abuse."