Trial begins in archdiocese of New Orleans' $230m settlement for abuse survivors

"The archdiocese of New Orleans has begun a three-week confirmation trial that will determine whether a federal bankruptcy judge signs off on a $230m settlement meant to compensate 650 clergy abuse survivors and resolve one of the US's longest-running and costliest church bankruptcies. US bankruptcy judge Meredith Grabill will decide whether the plan five and a half years in the making is fair to the survivors and dozens of other creditors who have waited."

"Before the main confirmation issues could be argued, the court took its first step: beginning to formally pull 150 parishes, schools and ministries into the case through what attorneys describe as a mini-bankruptcy. Those affiliated entities known as apostolates will collectively contribute $60m to the overall settlement in exchange for being released from liability for any abuse that may have occurred on their properties or during their events."

"Howard Rodgers, a longtime member of the former St Gabriel parish one of several churches sold during the 2023 consolidation said he and other churchgoers finally got some clarity at Sunday mass. Yesterday at our particular church, St Martin de Porres, the pastor got up and said that whatever our portion is for the settlement, it was going to be taken care of by an anonymous donor, Rodgers said. That brought some relief to our church. Rodgers said parishioners are ready for an end."

The Archdiocese of New Orleans has begun a three-week confirmation trial to determine whether a federal bankruptcy judge will approve a $230m settlement compensating 650 clergy abuse survivors. Judge Meredith Grabill will decide whether the plan is fair to survivors and other creditors who have endured delays and contentious negotiations. The court has pulled 150 parishes, schools and ministries into the case through a mini-bankruptcy, with those apostolates collectively contributing $60m in exchange for releases from liability. Archbishop Gregory Aymond acknowledged in September 2023 that affiliates must contribute via a channeling injunction. Parishioners expressed surprise and relief when an anonymous donor offered to cover some parish obligations.

Read at www.theguardian.com