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CV NEWS FEED // A federal judge has ordered the Archdiocese of New Orleans to appear in court in June to defend the status of its five-year bankruptcy case, citing a lack of progress and mounting legal fees.
4WWL reported that U.S. Bankruptcy Judge Maredith Grabill issued the directive on Monday, calling for the archdiocese to show cause on June 26 as to why its Chapter 11 case, filed in May 2020, should not be dismissed. The case stems from hundreds of sexual abuse claims against clergy and other Church personnel over the past six decades.
“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,” Grabill wrote.
She described the two current settlement proposals as “facially unconfirmable.”
Since 2020, the archdiocese and a committee representing more than 500 survivors of clergy abuse have been engaged in bankruptcy negotiations. A reorganization plan filed by the Church last fall proposed an average settlement of $125,000 per claimant. The committee countered with a proposal seeking roughly $2 million per claimant — totaling over $1 billion, including insurance proceeds.
The prolonged impasse has come at a significant financial cost. Legal fees for the archdiocese have surpassed $41 million, raising concerns among both the court and the faithful about stewardship and accountability.
In a statement released Monday, the archdiocese said it remains committed to resolving the case through negotiation.
“We are pleased to have the opportunity to share our significant progress in negotiations to bring just and equitable compensation to the survivors and creditors while providing a sustainable path forward for the ministry of the Catholic Church to continue in our area,” the archdiocese stated. “Despite the unacceptable amount of time and money spent over the past five years, we believe resolution of these bankruptcy proceedings will be for the benefit of all survivors and creditors and the faithful of the Archdiocese of New Orleans.”
The archdiocese has already taken steps to raise funds for a potential settlement. As CatholicVote previously reported, the archdiocese in December 2024 raised about $2.3 million by selling three properties: a vacant lot near Notre Dame Seminary, a clergy retreat house, and the Bishop Perry Center. The Bishop Perry Center formerly was used for outreach to people experiencing homelessness. A spokesperson for the archdiocese described the sales as “a positive step forward.”
The archdiocese has also come under public scrutiny in recent months following a New York Times report suggesting that external entities, including the New Orleans Saints and then-District Attorney Leon Cannizzaro, may have influenced the Church’s 2018 list of clergy credibly accused of abuse. CatholicVote reported that the archdiocese responded to the allegations in early February, stating that outside parties provided only public relations assistance and had no role in determining who was included or excluded from the list.
As the June hearing approaches, 4WWL reported, the outcome could determine whether the archdiocese continues pursuing a collective resolution through bankruptcy court or faces potentially hundreds of individual lawsuits in civil court.
