When a New Mexico bankruptcy judge ruled against a clergy sex abuse claimant earlier this summer in her legal dispute with the Archdiocese of Santa Fe, he may have issued more than a routine legal opinion and order.
Judge David Thuma’s decision may now serve as a cautionary warning to attorneys in other church bankruptcies — attorneys for both church entities and abuse claimants — about the challenges of enforcing provisions in reorganization plans and settlement agreements, especially the legal pitfalls posed by ambiguous language in those documents.
“The Court has reviewed the covenants, the confirmed plan, and related documents and has heard oral argument on the dispute,” Thuma explained in his opinion on June 21, which was accompanied by a court order denying a motion by Mela LaJeunesse, an abuse claimant.
LaJeunesse’s motion, filed by attorney Levi Monagle, was centered on a 142-word non-monetary covenant,…
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