New Orleans Archdiocese bankruptcy impact was bigger than archbishop claimed, deposition shows
New Orleans Archdiocese bankruptcy impact was bigger than archbishop claimed, deposition shows
New Orleans Archdiocese bankruptcy impact was bigger than archbishop claimed, deposition shows
New Orleans Archdiocese bankruptcy impact was bigger than archbishop claimed, deposition shows
Major questions are surrounding the qualifications of a man helping lead the Archdiocese of New Orleans bankruptcy proceedings.
A volunteer with a key role in New Orleans church bankruptcy admits to a lack of qualifications.
Lee Eagan said he lacked prior experience, failed to familiarize himself with rules and suffered cognitive decline as case expenses went higher and higher, according to a recent deposition he gave.
In the deposition, he said he has no prior experience managing bankruptcy cases.
Eagan's experience with the bankruptcy came under fire.
This comes as clergy abuse survivors, who have filed hundreds of claims, have received no compensation from the diocese. There are also questions about the rate attorneys are charging.
On Friday, some of the survivors filed a motion in court asking for a judge to appoint a trustee to oversee the bankruptcy case and audit all past expenses in the case following the new information revealed in Eagan's deposition.
The motion says in part:
"One of the central people who enabled generations of the sexual abuse of children should not manage this bankruptcy. Archbishop Gregory Aymond’s personal and professional failings.
"Aymond’s gross mismanagement also extends to the more than four years of this bankruptcy.
"Aymond assigned Lee Eagan, an unpaid volunteer who recently admitted to 'cognitive decline' from a car accident, as the person to manage this bankruptcy on his behalf.
"Aymond has not provided any document authorizing Eagan’s duties and responsibilities. caused the filing of the bankruptcy in the first instance."
The survivors also allege in the motion that Aymond may be criminally linked to the case, and believe he should not be part of the bankruptcy case at all.
"His career-long knowledge of the breadth and depth of abuse, his bullying tactics to settle more than one hundred childhood sexual abuse claims for practically nothing, using prescription as a cudgel, and his active maneuvering of his pedophile priests in and around the Archdiocese has legitimately raised his profile with law enforcement. His status as a likely criminal target precludes him from providing reasoned and unbiased guidance in this bankruptcy," the motion read.
It is important to note that Aymond has not been criminally charged in connection with the case.
The motion does not call for Aymond to step down as archbishop, rather just his involvement in the bankruptcy case.
"Movers are requesting that the Court issue an order appointing a trustee to manage the bankruptcy, manage the assets of the Archdiocese and all that it owns, review and pay professionals’ fees and costs, and negotiate the terms of a final resolution of the bankruptcy. Records show that adds up to $38 million in legal and associated professional fees," the motion read.
“I’m wondering how any other company could go into bankruptcy yet pay attorney fees of $40 million,” said clergy abuse survivor Mark Vath.
Clergy abuse survivor Aaron Hebert is also demanding transparency.
WDSU Investigates also dug into the timeline of the bankruptcy.
In 2020, Aymond said Catholic schools or churches would not be impacted by the bankruptcy.
That changed in 2023, the same week retired priest Lawrence Hecker was arrested. Prosecutors say Hecker is a serial child abuser and rapist and a diagnosed pedophile.
Aymond issued a letter that reads in part:
“When we filed for Chapter 11 Reorganization in 2020, I was advised by legal counsel that the Chapter 11 proceedings would only impact our administrative offices and not the apostolates - parishes, schools, and ministries - of the Archdiocese of New Orleans. Unfortunately, this is no longer the case because of many external factors now facing us including the fact that the law governing the statute of limitations has changed to now permit the filing of past abuse claims in civil court.”
In the July deposition, Eagan is asked by attorney Rick Trahant when he knew parishes could be impacted.
Eagen responded “six months” into the bankruptcy in 2020.
So why did it take Aymond years to tell parishioners if Eagan knew six months into the bankruptcy.
Eagen responded, “I don’t know.”
The Archdiocese of New Orleans released a statement saying:
“The direct character assassination of competent professionals is yet another tactic of certain attorneys to delay and discredit the Archdiocese of New Orleans and undermine the bankruptcy process. Those same attorneys calling for the removal of Mr. Eagan are directly responsible for the unacceptable time and costs through their frivolous and distracting court filings and their actions outside of the courtroom.
"Mr. Eagan has worked tirelessly and selflessly to manage this process as a volunteer and without compensation. He is a man of faith and integrity who works closely with competent and experienced professionals to share their expertise in the reorganization process. To imply that his role has been the cause of the delays is incorrect and detrimental to the process that we hope will bring closure and compensation for the abuse survivors.
"It is time to bring an end to the distractions and for all involved to join in productive negotiations towards the goal of a settlement to compensate survivors and move forward."
Richard Trahant, Soren Gisleson, and John Denenea, who represent victims, issued a statement saying, “The statements issued by the Archdiocese and Gregory Aymond are irrelevant word salad. These statements don't address a single issue revealed by Mr. Eagan's deposition."
According to a spokesperson with the archdiocese:
“In addition to being unconstitutional, this motion creates further delays and drives up costs thereby depriving the victims who deserve compensation. This is yet another frivolous motion by certain attorneys to undermine the bankruptcy process and discredit the leadership of the Archdiocese.”
Jones Walker issued the following statement:
"The firm has a strict policy of not commenting on pending litigation. We will respectfully defer comment to the Archdiocese of New Orleans and its spokesman."