The New Orleans Archdiocese has agreed to a proposed $230 million settlement for survivors of clergy sexual abuse, attorneys for some of the survivors said Monday, marking what participants called a potential step toward resolving yearslong negotiations.
The agreement updates a plan announced in May that would have paid at least $179.2 million to more than 500 claimants, an amount opposed by a bloc of survivor attorneys who said it undervalued the claims. The archdiocese filed for bankruptcy in May 2020 rather than litigate each claim individually, a move survivors and their lawyers say has allowed church leaders to avoid public courtroom scrutiny.
A group of 10 attorneys representing survivors said in a statement that they had opposed the earlier offer and that “the ‘power of no’ forced the Archdiocese to come up with significantly more money.” Brad Knapp, an attorney for a committee representing abuse survivors, said he was not aware of any survivor attorneys opposing the updated plan and predicted there would be little chance the deal is voted down.
Survivors have until late October to vote on whether to approve the settlement. If two-thirds of claimants approve it, payments could begin as early as next year, attorneys said. The bankruptcy judge overseeing the case, U.S. Bankruptcy Judge Meredith A. Grabill, has warned that she may dismiss the bankruptcy if the settlement is not approved.
Officials representing unsecured creditors in the case cautioned that a failed settlement would send survivors back into individual lawsuits, a process that could take years and require painful depositions and appeals. In a public letter, the Official Committee of Unsecured Creditors warned survivors about confronting an “aggressive and hostile” archdiocese in court and urged acceptance of the initial settlement offer to expedite relief.
Some survivors expressed a desire for closure and compensation while acknowledging that money cannot fully redress the harms. Kristi Schubert, an attorney representing dozens of survivors, said many clients “would prefer to receive certain money now.” Kevin Bourgeois, a New Orleans native who said he suffered clergy sexual abuse and reached a private settlement in 2020, said monetary awards do not equate to full justice and argued that the bankruptcy process can keep the church from facing deeper public scrutiny.
The proposed settlement includes nonfinancial measures aimed at accountability and prevention. The archdiocese agreed to bring in outside experts to evaluate its child-protection programs and recommend improvements, to establish a document archive at a secular university related to abuse, and to hold public forums for survivors to share experiences with church leadership.
The archdiocese described the revised plan as "a significant step forward for the benefit of all claimant survivors" in an emailed statement. New Orleans Archbishop Gregory M. Aymond said he remained "very hopeful and committed to bringing this bankruptcy to a conclusion that benefits the survivors of abuse" and expressed a desire to meet with survivors to hear their stories.
The New Orleans case is among more than a dozen Catholic Church bankruptcy proceedings tied to clergy sex abuse across the United States and has been described by some advocates as one of the longest-running and most contentious. Terence McKiernan, president of the nonprofit BishopAccountability.org, noted the case's prominence among the wave of diocesan bankruptcies.
An Associated Press investigation previously reported that accusations against clergy in the archdiocese triggered a sweeping FBI probe and that some church officials enlisted help from New Orleans Saints executives behind the scenes to respond to the crisis.
If survivors approve the proposed settlement, the resolution would end years of negotiations and could begin the process of disbursing funds and implementing the agreed reforms. If the settlement fails, survivors would likely face renewed litigation and the possibility of the archdiocese seeking additional bankruptcy protections in the future.