MOTION TO DISMISS ARCHDIOCESE OF NEW ORLEANS BANKRUPTCY PROCEEDING FILED
On July 3, 2020, attorneys for the Official Committee of Unsecured Creditors filed a Motion to Dismiss the Archdiocese of New Orleans Chapter 11 Bankruptcy Case.
Under Fifth Circuit and other authority, “bad faith” dismissal of a Chapter 11 bankruptcy case is warranted when the debtor commences a bankruptcy not to reorganize or respond to financial crisis (or for some other valid reorganizational purpose), but instead to gain a litigation advantage.
The bankruptcy filing brought an immediate halt to the litigation, further delaying abuse claimants from any recovery. The Archdiocese presumably hopes to force the abuse survivors into an involuntary collective bargaining process, with the benefit of a claims bar date, discharge and channeling injunction, while gaining the other tactical advantages.
By filing the bankruptcy and removing the litigation to federal court, the Archdiocese worked to gain immediate tactical advantages, including:
- Stopping a discovery process that threatened to publicly expose information showing the Archdiocese’s mishandling and cover-up of abuse;
- Avoiding a May 28, 2020 scheduled deposition of Archbishop Aymond; and
- Evading upcoming evidentiary hearings on prescription defenses, with a change to a federal forum that will not provide plaintiffs with the same procedure.
To view the pleading in its entirety click here: Committee Motion to Dismiss Bankruptcy 2020-07-03.
Other Clergy & Priest Abuse & Sex Abuse News
A federal judge has approved a $230 million settlement in the New Orleans Archdiocese clergy sex abuse bankruptcy. This article explains what the settlement means, how Louisiana’s lookback law changed the case, and what survivors should know now.
College should be a time for growth, discovery, and opportunity, but the reality is that sexual violence remains a serious issue on campuses.
Award-nominated documentary God As My Witness highlights clergy sexual abuse and the fight for justice.
A New Orleans clergy abuse trial verdict has demonstrated that justice is possible thanks to the Louisiana lookback law.
The first jury verdict was reached in a case relying on the Louisiana sex abuse look-back window, which revived claims related to childhood sexual abuse.
Stopping sex abuse in youth sports requires a collective effort to protect kids from sexual predators who exploit their trust.
