The two sides started talking Monday in Minnesota, in their second attempt to settle the bankruptcy case.
The archdiocese filed for bankruptcy in 2011, stating that it did not have the money to pay all the claims against it. Hundreds of people had sued, claiming they were sexually assaulted as children, by clergy and other church employees.
As part of the bankruptcy proceedings, attorneys for the archdiocese and victims have been attempting to mediate a financial settlement, but the talks ended unsuccessfully Tuesday afternoon.
The case is now expected to return to federal court.