Catholic Church Bankruptcy Archives

Image credit: Coat of arms of the Archdiocese of New Orleans, via Wikipedia The archbishop of New Orleans made a rare appearance in federal bankruptcy court on Friday, just days after his archdiocese announced a proposed $180 million settlement plan for hundreds of clergy abuse survivors. The proposal, which has triggered backlash from some plaintiffs, comes as the bankruptcy case drags into its fifth year, The Guardian reported on Saturday. "I'm here because I'm concerned for the survivors," Archbishop Gregory Aymond said in an interview with WWL Louisiana, away from cameras following the hearing. It was believed to be his first in-person appearance during an open court session since the Archdiocese of New Orleans filed for Chapter 11 bankruptcy protection on May 1, 2020, joining roughly 40 Catholic dioceses and religious institutions across the United States facing similar scandals. "And we want to make sure it's reasonable expectations for what we can give them and to make sure the process proceeds." But not all survivors were moved by his presence. James Adams, who survived child sexual abuse by a Catholic priest in New Orleans and once chaired the survivors committee, criticized the archbishop's timing. "If he was concerned for survivors, truly, I think there would have been a lot of things done differently from the beginning, unfortunately," Adams told WWL. Aymond acknowledged the prolonged nature of the bankruptcy proceedings. "We want that wait to end as soon as possible," he said. " have had terrible crimes committed against them, and we want to make sure to respect them and the pain they’ve been through. One way to do that is to expedite negotiations." Though he did not speak during the court session, Aymond listened from the gallery as attorneys debated the settlement's merits. Among the critics were lawyers representing approximately 200 of the 600 claimants, one of whom labeled the proposed deal as "dead on arrival." The proposed plan, which still lacks formal documentation, outlines $130 million in cash and up to $110 million more from insurance proceeds and potential sales of church property. That total falls nearly $100 million short of a similar agreement recently finalized by the Diocese of Rockville Centre in Long Island, New York. In that case, about 600 survivors reached a $323 million settlement, averaging roughly $540,000 per claimant. By comparison, the New Orleans proposal would yield between $300,000 and $383,000 per claimant on average. Individual payouts would be calculated using a formula accounting for severity, corroborating evidence, and other factors. For now, both sides say further negotiations are needed. Two-thirds of all abuse survivors must vote in favor of the plan for it to be approved. A final proposal is expected by late August, with a vote possibly taking place by September. If ratified, checks could be issued as soon as the first quarter of 2026, according to court testimony. Still, attorneys opposed to the deal remain firm. One plaintiff's attorney stated in court, "This deal is never going to get passed. They don’t have the votes. And they’re never going to get the votes." Those representing dissenting survivors hope to return their clients' claims to civil court, where lawsuits had been paused when the archdiocese filed for bankruptcy. A plaintiff's attorney involved in the committee defending the deal pushed back, calling the proposal "a starting point." He emphasized his experience handling complex cases like the Rockville Centre bankruptcy and suggested the sides could build from the current offer. In response, Adams offered a sharp reminder: "The starting point, if my math is correct, was five years ago." Judge Meredith Grabill, who is overseeing the case, indicated a faster timeline might be possible. Attorneys confirmed that once a plan is finalized, at least two months would be needed to notify all 600 claimants and conduct a vote. For information on filing a clergy abuse lawsuit, visit SurvivorsRights.com's Catholic Church Sexual Abuse Lawsuit Guide.

Catholic Church Bankruptcy

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

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Catholic Church Bankruptcy

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

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