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3h ago

Judge Approves $230 Million New Orleans Archdiocese Settlement as Insurer Deal Could Lift Payouts to $305 Million

The ruling ends a five-year bankruptcy case, triggering strict child-protection reforms with public disclosure of church records.

FILE - Archbishop Gregory Aymond, of New Orleans, listens during a news conference at the United States Conference of Catholic Bishops' annual fall meeting in Baltimore, Nov. 12, 2013. (AP Photo/Patrick Semansky, File)
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FILE - Cardinal Timothy Dolan of NY attends a press conference at the North American College in Rome, May 9, 2025. (AP Photo/Gregorio Borgia, File)
Cardinal Timothy Dolan attends a press conference following the election of Pope Leo XIV, at the Pontifical North American College in Rome, Italy, May 9, 2025. REUTERS/Guglielmo Mangiapane/File Photo

Overview

  • U.S. Bankruptcy Judge Meredith Grabill confirmed a $230 million plan to compensate roughly 600 survivors after a three-week fairness trial.
  • Attorneys said Travelers agreed in principle to contribute an additional $75 million, a step that requires separate court approval before any funds are added.
  • The package draws from $130 million in cash by the church and affiliates, a $70 million sale of Christopher Homes to Tredway that preserves affordable housing, and about $30 million from other insurers.
  • Archdiocesan counsel said contributions will be deposited into a settlement trust by December 26 so that payments can begin in early 2026 through a court-administered points system.
  • The confirmed plan mandates binding safety protocols, independent oversight with a survivor seat, a Survivors' Bill of Rights, and a public archive of abuse records to be housed at LSU.