New Orleans Archdiocese Settles $230m with Sex Abuse Victims
In a near-unanimous vote, hundreds of victims of childhood sexual abuse by clergy have approved a $230 million bankruptcy settlement with the Roman Catholic Archdiocese of New Orleans. The deal, which was accepted by 99.63% of creditors excluding a small group of bond investors who voted against it while suing the church for securities fraud, will provide payments to victims based on points assigned for the severity and effects of the abuse.
The settlement includes agreements to release files on abusive priests and deacons, as well as stronger protections for children and vulnerable adults. However, not all abuse survivors voted on the final settlement plan, with only two individuals opposing it - a rare occurrence in such cases.
Initially, attorneys representing many abuse survivors had planned to vote against a plan that did not guarantee $50 million of the total amount tied to the sale of church-owned apartment complexes. However, after negotiations were amended to include this amount, their lawyers supported the deal.
The judge overseeing the archdiocese's bankruptcy, Meredith Grabill, has yet to approve the settlement. A hearing on whether to confirm it is scheduled for November 12.
New Orleans' archdiocese filed for bankruptcy in 2020 amid the fallout from a worldwide clergy molestation scandal, with many US Catholic dioceses or religious orders having followed suit. This is one of over 40 cases that have been completed, according to Penn State University's law school.
In contrast, New Orleans Archbishop Gregory Aymond initially estimated his administration could resolve the proceedings for about $7 million, including compensation for abuse victims. However, the archdiocese has since spent significantly more - around $50 million on legal fees alone.
The settlement amount materialized after Louisiana state lawmakers removed a ban in 2021 on allowing survivors of decades-old abuse to pursue civil damages in court. The state supreme court upheld this law as constitutional in June 2024.
Critics have pointed out that the archdiocese's actions, such as the expulsion of four abuse survivor clients from a committee negotiating a settlement, have been acrimonious and at times secretive. A lawyer for survivors' attorney Richard Trahant stated that his clients played a significant role in approving the deal but acknowledged that "no amount of money could ever make these survivors whole."
Meanwhile, an ongoing investigation has exposed how the archdiocese shielded admitted serial child abuser Lawrence Hecker from law enforcement for decades.
In a near-unanimous vote, hundreds of victims of childhood sexual abuse by clergy have approved a $230 million bankruptcy settlement with the Roman Catholic Archdiocese of New Orleans. The deal, which was accepted by 99.63% of creditors excluding a small group of bond investors who voted against it while suing the church for securities fraud, will provide payments to victims based on points assigned for the severity and effects of the abuse.
The settlement includes agreements to release files on abusive priests and deacons, as well as stronger protections for children and vulnerable adults. However, not all abuse survivors voted on the final settlement plan, with only two individuals opposing it - a rare occurrence in such cases.
Initially, attorneys representing many abuse survivors had planned to vote against a plan that did not guarantee $50 million of the total amount tied to the sale of church-owned apartment complexes. However, after negotiations were amended to include this amount, their lawyers supported the deal.
The judge overseeing the archdiocese's bankruptcy, Meredith Grabill, has yet to approve the settlement. A hearing on whether to confirm it is scheduled for November 12.
New Orleans' archdiocese filed for bankruptcy in 2020 amid the fallout from a worldwide clergy molestation scandal, with many US Catholic dioceses or religious orders having followed suit. This is one of over 40 cases that have been completed, according to Penn State University's law school.
In contrast, New Orleans Archbishop Gregory Aymond initially estimated his administration could resolve the proceedings for about $7 million, including compensation for abuse victims. However, the archdiocese has since spent significantly more - around $50 million on legal fees alone.
The settlement amount materialized after Louisiana state lawmakers removed a ban in 2021 on allowing survivors of decades-old abuse to pursue civil damages in court. The state supreme court upheld this law as constitutional in June 2024.
Critics have pointed out that the archdiocese's actions, such as the expulsion of four abuse survivor clients from a committee negotiating a settlement, have been acrimonious and at times secretive. A lawyer for survivors' attorney Richard Trahant stated that his clients played a significant role in approving the deal but acknowledged that "no amount of money could ever make these survivors whole."
Meanwhile, an ongoing investigation has exposed how the archdiocese shielded admitted serial child abuser Lawrence Hecker from law enforcement for decades.