The Roman Catholic Archdiocese of New Orleans has reached a landmark $305 million settlement with survivors of clergy sexual abuse, concluding a bitterly contested and protracted five-year bankruptcy case. The resolution follows years of legal wrangling, accusations of church secrecy, and a painful process for victims who sought accountability for decades of alleged cover-ups.
A Survivor's Journey and a Church's Strategy
The case's human cost is embodied by survivors like James Adams, a former New Orleans banker and president of the archdiocese's Catholic Community Foundation. Adams was abused as a 10-year-old altar boy in 1980 by Father James Collery, an Irish Spiritan priest at St. Ann church in Metairie. For years, Adams carried the trauma in silence, even as he rose within church fundraising circles.
In 2012, Adams confided in Archbishop Gregory Aymond about the abuse. Aymond apologised and offered to pay for therapy. However, by 2018, Adams sought a lump-sum settlement. The archdiocese's response, through attorney Dwight C Paulsen III, was a demand for his confidential employment, medical, and educational records—a move Adams perceived as intimidation after he involved lawyer Richard Trahant.
When Trahant filed a claim on Adams's behalf in April 2020, the archdiocese forced Adams out of his foundation role. Just three weeks later, on 1 May 2020, the archdiocese filed for Chapter 11 bankruptcy protection. Aymond stated this would allow more funds for victims, claiming the church was not financially bankrupt. Critics, however, saw it as a tactic to avert depositions and consolidate hundreds of lawsuits.
Bankruptcy Shield and Secrecy Orders
The bankruptcy filing triggered an automatic stay on litigation, halting discovery into church files. Judge Meredith Grabill imposed a protective order, shielding internal documents. A creditors' committee was formed, including Adams and three other survivors, alongside lawyers Trahant, Soren Gisleson, and Johnny Denenea.
Committee members accessed disturbing files on a closed server, revealing a history of hidden predators. Adams found Collery's file "gut-wrenching," noting how late Archbishop Philip Hannan had praised the abusive priest. The slow-moving process frustrated survivors, who served for two years without compensation.
The bankruptcy shield was tested in early 2022 when Trahant warned his cousin, a school principal, about chaplain Father Paul Hart's past. Reporter Ramon Antonio Vargas then revealed Hart had admitted to a sexual act with a 17-year-old girl in the 1990s. Aymond had overruled his own lay review board to reassign Hart.
Judge Grabill, viewing this as a violation of the secrecy order, fined Trahant $400,000 and later removed him, Gisleson, Denenea, and the four survivor members from the creditors' committee. This purge occurred hours before the survivors were to meet Archbishop Aymond and read impact statements—a meeting that never happened.
Mounting Scrutiny and Final Settlement
Grabill's actions emboldened media scrutiny. Investigations by the Guardian, National Catholic Reporter, and WWL-TV exposed more cases, like that of Lawrence Hecker, a 93-year-old retired priest convicted of child rape who died days into a life sentence in 2023.
Legal documents reviewed by the National Catholic Reporter indicated the archdiocese had paid an estimated $11.7 million in private settlements over a decade before the bankruptcy, often with non-disclosure agreements. This contradicted US bishops' 2002 charter for transparency.
By 2025, the bankruptcy entered its fifth year. Judge Grabill, facing the prospect of a dismissal that would flood state courts with cases, approved high-dollar mediators. A settlement package emerged in September 2024: the church pledged $230 million, with $29 million from smaller insurers.
In late October, survivors voted overwhelmingly to accept the terms. Following a fairness hearing where Adams and others testified, Grabill approved the settlement on 8 December 2024. The archdiocese's largest insurer, Travelers, later agreed in principle to add $75 million, bringing the total to $305 million.
Lasting Scars and a Church in Transition
For James Adams, the victory is bittersweet. Reflecting on the five-year ordeal, he recently told friends, "Knowing what I know now... I probably would have kept my mouth shut. Suffering in silence would have been more tolerable than the emotional and spiritual toll this has taken."
He grapples with his faith, haunted by the knowledge that two priests who signed his son's baptismal certificate are now imprisoned for sex crimes. He finds solace not in church leaders, but in the Eucharist, echoing the steadfast faith of his great-grandmother.
Archbishop Gregory Aymond, having submitted his resignation to the Vatican upon turning 75, is now phasing out. Coadjutor Archbishop James Checchio is set to succeed him, inheriting a diocese scarred by scandal and a multi-million dollar debt to those it failed to protect.
The New Orleans bankruptcy saga, one of the longest and most contentious of its kind in the US, underscores a persistent pattern: legal manoeuvres can delay justice, but survivors' resilience and investigative journalism can eventually force transparency and a measure of accountability.
