Holding the Archdiocese Accountable: Recent Developments in the New Orleans Bankruptcy Case

Over the past several months, our firm along with co-counsel, Johnny Denenea and Richard Trahant, on behalf of certain abuse survivors, has been holding the Archdiocese of New Orleans accountable by filing several motions to address concerns about the Archdiocese’s financial management and the growing professional fees that have been accumulating since the case began. Below is a summary of the recent actions we have taken.

Challenging Professional Fees: The Fee Dispute

Two significant pleadings involve our Objections to Jones Walker LLP’s Eleventh & Twelfth Interim Fee Application for Compensation and Reimbursement, covering fees from November 2023 to May 2024.  From the start of the bankruptcy, nearly $40 million in fees have been authorized, a figure that continues to rise. Our objections led to a series of depositions of key representatives from the Archdiocese and Jones Walker, revealing how payments have been handled during the bankruptcy process. Notably, the Archdiocese’s Corporate Representative, Lee Eagan—appointed by Archbishop Aymond—has played a central role in approving these escalating fees. We have argued that many of these fees are unreasonable and unnecessary and should be excluded from payment.

The Push for Accountability: The Holdback Dispute

In response to the unchecked growth of professional fees, U.S. Fire Insurance Company and International Insurance Company filed a motion requesting a fee holdback of 20%. Their goal is to ensure that a portion of the fees remains withheld until a thorough review confirms their necessity and reasonableness. We joined in this motion, as well as the United States Trustee.  The holdback motion seeks financial accountability and efficiency during these proceedings. 

Fighting for Transparency: The Motion to Unseal Documents

To bring further transparency to the bankruptcy, we have also filed a Motion to Consider Whether the Materials in Question Should Be Sealed. The “material” in question is an Evidentiary Memorandum prepared by us and co-counsel based on thousands of Archdiocese documents which outlines the nature and breadth of the Archdiocese sexual abuse crisis for the last four generations.  The motion seeks to have the Memorandum made public, or designated as “not confidential.” As of now, the Memorandum remains under seal.

Seeking Independent Oversight: The Trustee Motion

Due to the gross mismanagement of the bankruptcy by Archbishop Aymond and his proxy Lee Eagan, we filed a motion to appoint a Chapter 11 Trustee and Fee Examiner. This motion seeks to bring in an independent trustee to manage the case, ensuring that professional fees are scrutinized, past payments are audited, and the assets of the estate are to be used in a responsible manner for the abuse survivors and other creditors.  

These motions reflect our ongoing efforts to ensure that justice and transparency prevail in this bankruptcy case and that the survivors’ rights are safeguarded as the case progresses.

Related Documents

Mo Meghji Expert Witness Report Oct 23 2024

Objections to Jones Walker LLP’s Eleventh & Twelfth Interim Fee Application for Compensation and Reimbursement,

Deposition of Lloyd E. Eagan, JR. 

Deposition of Mark A. Mintz

Holdback Motion Insurance Replay

Motion to Consider Whether the Materials in Question Should Be Sealed.

Motion to Appoint a Chapter 11 Trustee and Fee Examiner 

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