Archdiocese of New Orleans Bankruptcy Spending Worries Louisiana Sex Abuse Survivors

The Roman Catholic Archdiocese of New Orleans has spent almost $40 million in fees on its bankruptcy. This number has Louisiana sex abuse survivors and their attorneys concerned about mismanagement of the process. According to WWL-TV, the volunteer who manages the bankruptcy, Lee Eagan, has admitted that he doesn’t have the qualifications to oversee the process. Additionally, the $40 million spent is over five times as much as initially projected. None of the money has gone to the survivors of Louisiana clergy sex abuse who have filed lawsuits against the Archdiocese. 

Herman, Katz, Gisleson & Cain attorney Soren Gisleson filed a brief in August on behalf of some of the sexual abuse survivors, asking the court to appoint a Chapter 11 trustee and an independent examiner to review past fees and analyze future costs to ensure that they’re reasonable. Additionally, the brief asks the court to stop Archbishop Gregory Aymond from managing the bankruptcy. “One of the central people who enabled generations of the sexual abuse of children should not manage this bankruptcy. Archbishop Gregory Aymond’s personal and professional failings caused the filing of the bankruptcy in the first instance,” the brief reads. Aymond allegedly knew about the assaults for generations and is a likely person of interest in a Louisiana State Police investigation. He appointed Eagan to manage the bankruptcy process, even though he has no experience with bankruptcy cases and isn’t an accountant or attorney. A hearing will be held on September 16.

Archdiocese of New Orleans Bankruptcy 

The Archdiocese of New Orleans filed for bankruptcy in 2020 as the organization faced claims from sex abuse survivors who say they were abused by clergy members from the Archdiocese. The majority of the claimants said the abuse happened when they were children. As of April, victims had filed 550 credible claims against the Archdiocese. Millions of dollars have been spent in the years since the organization filed for bankruptcy, but none of it has gone to victims. The church’s law firm has received millions of dollars to handle the bankruptcy, and other attorneys and accountants have also received millions. It is the second-costliest bankruptcy of a religious organization in the U.S. and the second-oldest bankruptcy of a religious organization. It is unclear when the Archdiocese will reach an agreement with the victims who are still waiting on compensation for the harm they suffered. Until a settlement is reached, child sex abuse survivors will be waiting for a much-needed resolution. 

Louisiana Law Gives Sex Abuse Survivors A Second Chance

In 2021, the Louisiana Legislature unanimously approved a “lookback window” law to give survivors of child sexual abuse more time to file civil lawsuits. Before the law passed, survivors only had until they turned 28 years old to sue the people who abused them and the organizations that enabled the crime. This limit doesn’t line up with what statistics show about victims of child sex abuse. The average age of disclosure is 52 years old — if someone discloses in the first place. Many child sex abuse crimes go unreported, which leads to perpetrators escaping without punishment. 

Once the lookback window went into effect, the Archdiocese of New Orleans and other religious organizations were flooded with Louisiana sex abuse lawsuits from victims of clergy and priest abuse. Unfortunately, clergy abuse has run rampant in the U.S., with many of the cases concentrated in the Catholic church. The Archdiocese’s bankruptcy plan was announced before the lookback window law, but it allowed even more victims a chance to seek justice. Unfortunately, there’s been a lack of progress in the years since, and the mismanagement of the bankruptcy raises the question of when the issue will be resolved.

The lookback window law has also faced its fair share of legal challenges. After the law was announced, religious groups challenged it on the grounds of constitutionality and went after the wording of the law — the legislature responded by clarifying that the lookback window applies regardless of when the abuse took place or the age of a victim. Most recently, the Louisiana State Supreme Court upheld the law, reversing an earlier opinion that the law wasn’t constitutional in a victory for survivors. In June, the Louisiana legislature extended the lookback window from 2024 until 2027.

Filing a Louisiana Sex Abuse Lawsuit

Victims of sex abuse now have until June 14, 2027, to file Louisiana sex abuse lawsuits against the perpetrators who harmed them. While this is encouraging news for sex abuse survivors, the Archdiocese’s bankruptcy proceedings introduce the question of when clergy abuse survivors will see compensation for their claims. 

It’s crucial to find a law firm experienced with Louisiana sex abuse laws that isn’t afraid to challenge powerful organizations such as the Catholic Church. Herman, Katz, Gisleson & Cain represents more victims suing the Archdiocese of New Orleans than any other firm. Our attorneys fight for victims to receive the compensation they deserve. While no amount of money can undo the harm caused by sexual abuse, a fair settlement can give you the resources needed to heal and recover from your trauma fully. If you’ve experienced childhood sex abuse and want to discuss your legal options, contact us online or call 1-844-943-7626 to schedule a free consultation.