The Archdiocese of New Orleans is facing an expedited bankruptcy court appearance, with the judge asking why the five-year-old case should not be dismissed for failure to reach a reorganization plan.
The Chapter 11 filing — which dates to 2020 and was prompted by some 500 abuse claims — has been what Archbishop Gregory K. Aymond previously called “a much longer, complicated, and costly process than anyone could have predicted.”
In a May 1 statement, the archdiocese admitted the “unacceptable amount of time and money spent over the past five years,” but held that “dismissal is not in the best interest of all survivors.”
“We commit to continue to work under court supervision to bring this case to a resolution that is beneficial to all and provides for the continued safety of minors,” said the archdiocese.
Judge Meredith S. Grabill issued her initial order on a potential dismissal April 28, noting that “from the start, the case has been particularly contentious.”
In response to a request from some of the abuse survivors, Grabill fast-tracked the dismissal inquiry — first set to take place in June — by scheduling a May 29 preliminary hearing.
Writing in her initial April 28 order, the judge admitted that lengthy, expensive proceedings are “not unusual or unexpected in complex mass-tort cases, given the diversity and sheer number of parties in interest, their differing motivations and goals, and difficult challenges associated with varying applicable law and available remedies.”
But with the archdiocese’s legal fees already exceeding $41 million to date — an amount confirmed to OSV News by a spokesperson for the archdiocese — and with no clear resolution in sight, the court’s patience appears to be wearing thin, especially after several regular status conferences and the appointments of both an independent expert and an additional mediator to move the case along.
“The record in this case as it stands today shows that, after five years and millions of dollars expended, no coalition of parties has proposed a confirmable plan,” wrote Grabill in her order.
She pointed to the two proposed reorganization plans each side had presented in September, which she said “greatly differ on the amounts and sources of funding that could be distributed to creditors, as well as the form of protections in a plan designed to provide certain and final resolution of liabilities.”
With neither option supported by the opposing side, the “unilaterally proposed plans would be a wasteful expenditure of significant time and resources,” said the judge in her order.
In statements issued April 28 and May 1, the archdiocese stressed its intention to support survivors in their pursuit of justice and healing.
In September 2023, Archbishop Aymond advised the faithful that parishes would need to contribute to the settlements.
Along with the wranglings over bankruptcy and survivor compensation, the archdiocese’s battle to resolve sex abuse claims has also included:
— The recusal of a previous judge in the Chapter 11 case.
— The guilty plea and life sentence of Msgr. Lawrence Hecker for rape and other crimes committed in 1975-1976.
— An investigation by the Louisiana State Police and the FBI to determine if archdiocesan officials covered up child sex trafficking by clergy over several decades, with some alleged victims reportedly taken out of state to be abused and marked for further exploitation among clergy.
A search warrant in that investigation was issued in May 2024. Louisiana State Police Public Information Officer Jacob Pecheu confirmed to OSV News the investigation was ongoing. OSV News is awaiting comment from the archdiocese regarding the investigation.
OSV News has found that from 2004 to 2024, U.S. Catholic dioceses collectively paid a total of more than $5 billion to settle abuse claims.
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