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Photo: Saint Louis Cathedral in the French Quarter of New Orleans; via Shutterstock.
The Archdiocese of New Orleans has increased its proposed clergy sexual abuse settlement from $180 million to $230 million, a move that could shift opposition among survivors’ attorneys toward supporting the deal, The Guardian reported yesterday.
The archdiocese’s largest insurer, Travelers, has not yet agreed to contribute, but discussions are ongoing that could raise the settlement’s total value further. Survivors are voting on the plan until October 29, with approval requiring two-thirds of the claimants.
Attorneys who had previously advised survivors to reject the $180 million proposal issued a joint statement celebrating the improved offer, saying their “dogged efforts” had produced a “superior deal … to resolve this bankruptcy at long last.” They pledged to encourage their clients to approve the amended plan, which now includes guaranteed funds from the church and its affiliates.
One attorney announced the deal publicly, while others emphasized that this new proposal was negotiated separately from an earlier committee-backed plan.
The revised agreement includes a $50 million letter of credit tied to the archdiocese’s assisted living arm, Christopher Homes, ensuring that survivors receive at least $230 million even if a pending sale does not close by March 31, 2026.
Survivors’ Attorneys Push for More
Several attorneys representing about 200 survivors had previously dismissed the earlier settlement as inadequate. “We knew this [earlier proposal] was a bad deal,” they said. “The power of ‘no’ forced the archdiocese to come up with significantly more money.” One client, James Adams, publicly criticized the prior offer as “a dead plan walking.”
While some survivors had called for a settlement closer to $300 million, the increased guarantee was enough to move a critical bloc of attorneys toward recommending approval.
Timeline: New Orleans Archdiocese Bankruptcy
- May 1, 2020 – Archdiocese files for Chapter 11 bankruptcy to manage hundreds of clergy abuse claims at once.
- 2021 – Louisiana lawmakers remove time limits for survivors to file civil lawsuits, opening the door for decades-old abuse claims.
- June 2024 – Louisiana Supreme Court upholds the law, rejecting constitutional challenges.
- May 2024 – Initial settlement offer of $180M sparks pushback from survivors and attorneys.
- September 2025 – Archdiocese raises guaranteed settlement to $230M after securing buyer for Christopher Homes. Survivors vote by October 29, 2025.
Years of Bankruptcy Proceedings
The archdiocese filed for Chapter 11 bankruptcy on May 1, 2020, as a way to consolidate hundreds of clergy abuse claims that would have been financially impossible to resolve individually. Since then, the process has been contentious.
A lawsuit sought to block guarantees of Archbishop Gregory Aymond’s retirement benefits, while also accusing him and another church leader of covering up child sexual abuse by clergy. The archdiocese has denied those allegations.
Comparisons to Other Settlements
The negotiations have been influenced by a January 2024 deal in which the Diocese of Rockville Centre in New York agreed to pay $323 million to about 600 survivors. Attorneys in New Orleans say the value of individual payouts will depend on evaluations by an independent claims administrator and trustee.
Archbishop Aymond issued a statement Monday affirming his desire to conclude the bankruptcy. “I know there remains much work to be done, and I continue to hold this work in prayer,” he said.
A separate statement from one plaintiffs’ attorney called the new deal “some relief, but far from the full satisfaction of the archdiocese’s obligations,” while noting that survivors may still pursue claims against Travelers Insurance.
Legal Landscape in Louisiana
The scope of the bankruptcy shifted dramatically in 2021 when Louisiana lawmakers lifted restrictions that had barred survivors of decades-old abuse from seeking civil damages. In 2024, the state supreme court upheld that law as constitutional, clearing the way for claims to proceed.
Initially, Archbishop Aymond had told church leadership in the Vatican that he believed the bankruptcy could be resolved for as little as $7 million. The revised $230 million guarantee underscores how far the case has evolved since then.
Are you or a loved one a survivor of Catholic Church sexual abuse? Learn more with our Catholic Church Lawsuit Guide. You can also get a free case review by filling out the form below.
