Archdiocese of N.O. bankruptcy case nears trial, but vote could decide fate

NEW ORLEANS (LA)
MSN [Redmond WA ]

June 27, 2025

By Thanh Truong, WVUE

NEW ORLEANS (WVUE) – After more than five years and tens of millions of dollars in attorney fees, the Archdiocese of New Orleans’ bankruptcy case is moving toward trial.

Federal Judge Meredith Grabill, who is presiding over the case, has set a trial start date of Nov. 12.

For some survivors of alleged clergy sex abuse who have sued the archdiocese and are seeking a settlement through the bankruptcy proceedings, the process has taken too long.

“It’s just dragging on to me. It’s like she (Judge Grabill) is just letting the lawyers make all the money. They’re not really worrying about the victims,” Johnny Krummel said outside federal court in New Orleans on Thursday afternoon.

Krummel says he was abused in the early 1980s at the former Catholic orphanage at Hope Haven and Madonna Manor. He says the trauma has stayed with him.

“When I left there, I was so messed up. They put me in a mental hospital from all the abuse they had done to me,” Krummel said.

Krummel and fellow survivor Richard Coon attended Thursday’s status hearing. They are among more than 500 people who claim they were sexually abused by archdiocesan clergy or staff.

While lawsuits from survivors led to the archdiocese filing for bankruptcy protection, Krummel says the proceedings have failed to prioritize survivors.

“The survivors never had a word in it yet, no due process,” he said.

Attorneys representing the archdiocese and attorneys for the survivors’ committee declined to comment on camera Thursday. But both sides took action following a June 26 deadline previously set by Judge Grabill to show progress toward a proposed settlement. Without that progress, she said she would be forced to dismiss the case.

Dismissal would allow survivors to pursue individual lawsuits, potentially exposing church leaders, including Archbishop Gregory Aymond, to numerous depositions.

In May, the parties reached a tentative settlement of approximately $180 million for survivors. To move forward, they must now meet several of the judge’s requirements ahead of trial.

A disclosure of the bankruptcy plan must be filed by July 15, and the plan must be finalized and ready to be sent to all parties by Aug. 8. Although the trial is set for November, September could be pivotal. That’s when survivors are expected to vote on the proposed plan.

Some say they’re not prepared to support it.

“I talked to many survivors. I don’t see anyone voting for this plan. And if this plan is not confirmed, she (Judge Grabill) says the case is dismissed,” Coon said.

Coon says a priest began abusing him at age 10. He believes the $180 million proposal is far too low and says he’s seeking justice, not compensation.

“I’m fighting for that 10-year-old boy in me. I’m not going to waiver. I’m not going to tire out,” he said.

Survivors like Coon say they’ve waited decades for their day in court. That day may finally be approaching.

See a spelling or grammar error in our story? Click Here to report it. Please include the headline.

Subscribe to the Fox 8 YouTube channel.

https://www.msn.com/en-us/money/bankruptcy/archdiocese-of-n-o-bankruptcy-case-nears-trial-but-vote-could-decide-fate/ar-AA1HvcEG?ocid=BingNewsVerp