UPDATE: What’s New: Settlement Raised to $230 Million

Due to survivor and advocate outrage, the Archdiocese has increased its clergy abuse settlement offer from $180 million to at least $230 million. This significant increase includes $50 million paid upfront that was previously expected only from the future sale of assisted-living properties known as Christopher Homes.

• Attorneys advocating for survivors called it a “superior deal … current and certain funding now in place” and are advising clients to support the revised plan.
• The voting period among survivors is now underway and continues through October 29, 2025, with payouts expected by March 31, 2026, if approved by the required two-thirds majority.
• Notably, the archdiocese’s main insurer, Travelers, has yet to commit and remains in active negotiations, meaning the final amount may still rise.

Key Considerations Now in Play

1. Increased Funding vs. Uncertain Point Value
   The additional $50 million shores up funding confidence, but survivors still lack clarity on how money maps to point values.
2. Upfront Cash vs. Asset Sale Contingency
   Guaranteeing the $50 million now offers a degree of security that was missing before. This is meaningful progress toward tangible compensation.
3. Trust in Transparency and Fair Process
   While some lawyers now encourage voting “yes,” others caution that the proposal remains opaque, particularly around the point-to-dollar ratio.
4. Potential for Further Increases
   If Travelers or other insurers contribute, the settlement pot may grow, potentially allowing for a more generous point value.
5. Investor Pressure to Consolidate Claims
   There is mounting pressure to dismiss nearly half of the 633 claims for reasons like late filing or duplication. Clearing those claimants could increase the average payout per survivor to $700,000.

Why This Matters and Why Transparency Is Non-Negotiable

This amended settlement, combining structured compensation with secured funding, is a critical step toward resolution for survivors. But without knowing the point-to-dollar conversion, survivors cannot fairly assess the adequacy of the deal.

• Timely compensation can prevent prolonged emotional and financial strain.
• Civil justice rooted in clarity and fairness supports survivors by providing stability, accountability, and healing.

At Andreozzi + Foote, we’ve seen firsthand how survivor-led, transparent advocacy can shift settlement terms toward dignity and repair. Survivors deserve certainty, respect, and genuine distribution of resources not formulas that obscure.

The Archdiocese of New Orleans has filed a controversial points-based settlement proposal, offering survivors of clergy sexual abuse compensation based on a structured system tied to the severity of the abuse. This proposal, currently introduced in the Archdiocese’s Chapter 11 bankruptcy proceedings, could reshape how abuse claims are evaluated and resolved.

How the New Orleans System Works

• A reviewer will assign 0–100 points to each abuse claim.
• The number of points depends on the type of abuse:
  • Rape: 75 points
  • Oral/digital sex: 56 points
  • Masturbation: 37 points
  • Filming abuse: 20 points
  • Touching under clothes: 18 points
  • Nude images/pornography: 10 points
  • Grooming: 5 points
  • Explicit statements (no physical contact): 3 points
    
• Additional points may be awarded for:
  • Participating in criminal prosecution
  • Filing a lawsuit before bankruptcy
  • Leading survivor advocacy efforts
  • Impact on behavior, academics, mental health, faith, and family relationships
• Deductions may occur for cases involving consenting adults over 18.
  
• The actual dollar value per point won’t be known until after all claims are reviewed. As an example, if there is $200M in the fund and 20,000 total points, each point could equal $10,000 making a standard rape claim potentially worth $750,000.
  

Why It Matters

This proposal valued between $180M and $235M is currently set to go to a vote by survivors in October, with a two-thirds majority required to pass.

The Controversy Around New Orleans

• Lack of clarity: Survivors do not yet know what each point is worth, making it hard to evaluate the fairness of the proposal.
• Legal pushback: Some attorneys representing survivors are urging a “No” vote, arguing it’s too opaque and may shortchange claimants. Others argue that if the settlement fails, payouts could be delayed for years or never happen at all.
  

Broader Implications

• This proposal may determine whether the Archdiocese exits bankruptcy or continues into prolonged litigation.
• A recent $2.4M jury verdict in a federal court litigation (not part of the bankruptcy) shows survivors can still seek and win substantial compensation through civil action.
  

Why Andreozzi + Foote Is Watching This Closely

At Andreozzi + Foote, we’ve represented survivors navigating the complexity and trauma of clergy abuse cases. Here’s why this settlement matters to us and to survivors statewide:

1. Transparent, just outcomes matter. Survivors deserve clarity and fair compensation, not formulas that obscure the real value of their claimed harm.

2. Champions in the courtroom. We’ve seen firsthand how a survivor’s voice when heard, believed, and represented can change outcomes and bring true accountability.

3. The real cost of waiting. Civil jury verdicts, like the $2.4M award to Mr. Lousteau, signal that extended litigation may yield better compensation but also costs years of emotional and financial delay.

What You Can Do

Survivors and supporters:

• Understand your options—voting on the proposal is pivotal.
• Ask for clarity—what is the point-to-dollar formula?
• Consult trusted legal counsel—knowing your rights and alternatives can protect your future.

For anyone impacted, we stand with you. If you want to discuss how this settlement or alternative litigation might affect you or someone you care about, reach out. You’re not alone.

Bottom Line

The Archdiocese’s proposed points system settlement offers structure but also uncertainty. It could provide prompt compensation paired with accountability but only if survivors understand and support the proposal. As attorneys committed to survivors of clergy abuse, we believe justice demands clarity.We have first hand experience navigating the Catholic Church and bankruptcy processes with success for our clients. Call us today to see how we can help you. 1-800-753-5458