Summary
- Victims
of clergy abuse in New Orleans approved $230 million settlement. - Nearly
unanimous vote ahead of late October deadline. - Settlement
resolves claims from over 500 abuse survivors.
In a court filing Thursday morning, the archdiocese stated
that, with the exception of a small number of bond holders who voted against it
while suing the church and accusing it of securities fraud, the agreement was
approved by an astounding 99.63% of creditors.
The church stated that “hundreds of survivors voted
overwhelmingly to accept the plan,” which includes agreements to release
files on abusive priests and deacons and strengthen protections for children
and vulnerable adults. The plan will distribute payments to victims of abuse
based on points assigned for the severity and effects of the abuse. The church
did not disclose the total number of votes cast.
More than 600 abuse survivors have submitted qualified
claims, according to earlier reports from the church; nevertheless, it is
uncommon for all claimants to have a say in the final payment proposal.
However, a 99.63% approval rating would suggest that only two of them voted
against the idea, even if they all submitted ballots.
For the idea to pass, at least two-thirds of the voters had
to agree with it. At first, lawyers for a sizable group of abuse survivors declared
they would vote against a plan that did not guarantee roughly $50 million of
the $230 million linked to the church’s impending sale of apartment buildings.
When the plan was changed to guarantee the $50 million, the
lawyers for those survivors supported it.
While arguing against a legal move by bondholders who
claimed fraud after the church withheld interest payments it had promised
investors when they purchased the church’s bonded indebtedness, the church
acknowledged the overwhelming percentage of votes, even though the results of
the vote were not expected to be announced until November 6.
The tentative date for the hearing to confirm the settlement
arrangement is November 12.
In 2020, the archdiocese of New Orleans declared bankruptcy
as a result of the global church’s clerical molestation problem. According to
data from Penn State University’s law department, it is just one of the US
Catholic dioceses or religious orders that have declared bankruptcy; as of
Thursday, 28 of those cases had been resolved.
How does this settlement affect ongoing criminal
investigations?
The $230 million ruin agreement approved by the victims
doesn’t directly affect ongoing felonious examinations into child sexual abuse
by church in New Orleans. Felonious examinations are separate legal processes
concentrated on executing felonious conduct, and agreements in civil or ruin
cases do n’t halt or resolve these felonious proceedings.
While the agreement provides fiscal compensation and checks
for survivors through the civil system, felonious cases are pursued singly by
law enforcement and prosecutors who decide whether to file charges grounded on
substantiation and public interest. Courts generally don’t apply agreements
that try to stifle or suppress felonious executions, as felonious cases serve
the public interest beyond individual claims.
Victims can accept civil or ruin agreements while felonious
examinations and executions continue parallelly. The felonious justice process
maintains its discretion and independence anyhow of private agreement
agreements.
