CNA Staff, Oct 31, 2025 /
10:30 am
The Archdiocese of New Orleans secured nearly unanimous approval for a $230 million bankruptcy settlement on Thursday, paving the way for payouts to over 650 victims after five years of contentious litigation in the nation’s second-oldest Catholic archdiocese.
The vote, which closed at midnight on Oct. 30, saw 99.63% of creditors — including hundreds of abuse survivors — endorse the plan in the U.S. Bankruptcy Court of the Eastern District of Louisiana, according to The Guardian.
Only the bondholder class, owed $30 million, opposed it, voting against the plan by a vote of 59 to 14, according to court documents. In 2017, bondholders lent the Church $40 million to help refinance parish debt and have been repaid only 25% of the outstanding balance. They have alleged fraud against the Church after it withheld promised interest payments. Legal experts say their “no” vote will not derail confirmation of the settlement, however.
“Your honor, there is overwhelming support for this plan,” archdiocese attorney Mark Mintz said in court on Thursday. The plan required that two-thirds of voters approve it.
Final tallies of the votes will be filed next week, and a hearing before Judge Meredith Grabill is set for mid-November, potentially ending the archdiocese’s Chapter 11 case filed in May 2020 amid a flood of abuse claims.
In a statement to CNA, the archdiocese said: “Today we have the voting results of our proposed settlement and reorganization plan, which has been overwhelmingly approved by survivors and other creditors. We are grateful to the survivors who have voted in favor of moving forward with this plan and continue to pray that both the monetary settlement and the nonmonetary provisions provide each of them some path towards their healing and reconciliation.”
Archbishop Gregory Aymond originally told the Vatican in a letter that he thought he could settle abuse claims for around $7 million. The archdiocese has spent close to $50 million so far on legal fees alone.
The settlement going to abuse victims breaks down to $130 million in immediate cash from the archdiocese and affiliates, $20 million in promissory notes, $30 million from insurers, and up to $50 million more from property sales, including the Christopher Homes facilities, a property that has provided affordable housing and assisted living to low-income and senior citizens in the Gulf Coast area for the last 50 years.
Payout amounts to individual claimants will be determined by a point system negotiated by a committee of victims and administered by a trustee and an independent claims administrator appointed by the court.
The point system is based on the type and nature of the alleged abuse. Additional points can be awarded for factors like participation in criminal prosecutions, pre-bankruptcy lawsuits, or leadership in victim efforts, while points may be reduced if the claimant was over 18 and consented to the contact. The impact of the alleged abuse on the victim’s behavior, academic achievement, mental health, faith, and family relationships can also adjust the score.
Abuse victim Richard Coon cast his vote on Monday. “I voted ‘yes’ to get Aymond out of town. I just think he’s been a horrible leader,” Coon said.
In September, Pope Leo XIV named Bishop James Checchio as coadjutor archbishop of New Orleans. Checchio has been working alongside Aymond and will replace him when he retires, which Aymond has said he plans to do when the bankruptcy case is resolved.
The $230 million deal is significantly higher than the initial $180 million proposal in May, which drew fire from attorneys like Richard Trahant, who criticized it for being “lowball.”
The initial settlement was “dead on arrival,” according to Trahant, who, along with other attorneys, urged his clients in May to hold out for a better offer, saying they deserved closer to $300 million, a figure similar to the $323 million paid out to about 600 claimants by the Diocese of Rockville Centre in New York in 2024.
“There is no amount of money that could ever make these survivors whole,” Trahant said in a statement Thursday.
In the Diocese of Rockville Centre bankruptcy settlement, attorneys reportedly collected about 30% of the $323 million, or approximately $96.9 million. Similarly, the Los Angeles Archdiocese’s $660 million settlement in 2007 saw attorneys receiving an estimated $165-$217.8 million, or 25%-33% of the payout.
(Story continues below)
Subscribe to our daily newsletter
The bankruptcy stemmed from explosive revelations in 2018, when the Archdiocese of New Orleans listed over 50 credibly accused priests. In 2021, the Louisiana Legislature eliminated the statute of limitations for civil actions related to the sexual abuse of minors.
The new law allows victims to pursue civil damages indefinitely for abuse occurring on or after June 14, 1992, or where the victim was a minor as of June 14, 2021, with a three-year filing window (which ended June 14, 2024) for older cases.
The Diocese of Lafayette, along with the Archdiocese of New Orleans, the Diocese of Baton Rouge, the Diocese of Houma-Thibodaux, Catholic Charities, the Diocese of Lake Charles, and several other entities challenged the law’s constitutionality, arguing it violated due process, but the Louisiana Supreme Court upheld it in June 2024 in a 4-3 decision.
Critics argued the retroactive nature of the law risks unfairness to defendants unable to defend against decades-old abuse claims due to lost evidence and highlighted the potentially devastating financial impact.
Amira Abuzeid is a senior editor at Catholic News Agency.
