New Orleans Archdiocese Historic $230 Million Abuse Settlement Trial Begins

A judge presides over a bankruptcy court hearing, seated at the bench with attorneys and observers present in the courtroom.
Summary: A federal judge is weighing approval of a $230 million settlement for hundreds of survivors in the New Orleans Archdiocese bankruptcy. The outcome could shape how dioceses nationwide resolve decades of clergy abuse claims and determine whether this case finally delivers long awaited accountability.

The Archdiocese of New Orleans has entered a three week confirmation trial that will determine whether a federal bankruptcy judge approves a proposed $230 million settlement for 655 survivors of clergy sexual abuse, CBS affiliate WWL News Channel 4 reported yesterday.

The decision now rests with United States Bankruptcy Judge Meredith Grabill, who must determine whether the plan is fair to survivors and to the many creditors who have waited through years of delays, legal battles and ongoing disputes over a state law that reopened the courthouse doors for survivors of decades old childhood sexual abuse.

Before the trial could address the core questions of approval, the court began its first major procedural step. It initiated what attorneys describe as a mini bankruptcy process to formally fold 150 parishes, schools and ministries into the case. These church affiliated entities, known as apostolates, will collectively contribute sixty million dollars toward the overall settlement in return for being released from liability for any abuse that occurred on their property or during their programs.

For years the archdiocese insisted that individual parishes and schools would not be required to contribute to the abuse settlement. That changed in September 2023 when Archbishop Gregory Aymond acknowledged that affiliates would have to participate through a channeling injunction. Many parishioners expressed shock at the sudden financial responsibility. Some churches reported that anonymous donors would cover their portion, while others announced specific figures at Mass. At St. Dominic in Lakeview, a pastor told parishioners their expected contribution would be $50,000, an amount far lower than many feared.

Despite these announcements, the archdiocese has not publicly disclosed how the $60 million is being divided among the 150 apostolates. When asked how contributions are calculated, the bankruptcy attorney for the apostolates responded that the structure is a single pot plan and that individual assessments would remain confidential. Some parish leaders say that although the lack of transparency is frustrating, they are more focused on finally resolving a scandal that has devastated families and communities for generations.

Archbishop Aymond recently sent a letter attempting to reassure parishioners that the mini bankruptcies would protect parish assets from liability for past abuse. He said that regular parish operations and school programs would not be disrupted and that tuition funds would not be used toward the bankruptcy. His message came shortly after reports that an anonymous donor had agreed to cover the amount owed by Second Harvest Food Bank. That organization initially resisted any pressure to use donor funds for bankruptcy purposes, but later became part of the settlement after Aymond altered its bylaws and gained authority to remove its longtime CEO.

The confirmation trial is expected to continue through early December with breaks for Wednesdays and Thanksgiving. Archbishop Aymond is scheduled to testify on November twentieth. His successor, Archbishop James Checchio, will testify the following day about the church’s child protection efforts and mandatory reporting practices moving forward. Survivors, some of whom have waited most of their lives for a public forum, are scheduled to testify on December second. Of the 491 survivors who voted on the proposed settlement, 489 approved it.

Judge Grabill will ultimately determine whether the settlement is workable and whether it provides a path toward accountability and closure after decades of secrecy, institutional failure and profound harm within the Catholic community.

Survivors have waited decades for truth, acknowledgment and accountability. To understand your legal options and recent updates on Catholic Church abuse cases, visit our Catholic Church Sexual Abuse Lawsuit Guide . If you are considering taking action, you may request a free and confidential case review using the form below.

For more coverage on New Orleans and Louisiana Catholic Church Sexual Abuse:

Catholic Diocese of Alexandria, LA Files for Bankruptcy as Sexual Abuse Claims Mount

Pope Leo Names Successor to New Orleans Archbishop Amid $230 Million Sexual Abuse Settlement

New Orleans Archdiocese Raises Clergy Abuse Settlement Offer to $230 Million

Half of Abuse Claims in Archdiocese of New Orleans Bankruptcy Case Could Be Disqualified

Three New Lawsuits Filed Against Diocese of Orlando Over Clergy Sexual Abuse Allegations

Holy Cross Order Ordered to Pay $2 Million to Louisiana Clergy Abuse Survivor in Landmark Jury Verdict

New Orleans Archbishop Appears in Court Amid Heated Debate Over Clergy Abuse Bankruptcy Settlement

NFL Saints Covers Up New Orleans Catholic Church Abuse Scandal

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