The nuns Catherine Rose Holzman and Rita Callanan reportedly had already sold the property to restaurateur-hotelier Dana Hollister.
Katy and the Archdiocese Of Los Angeles, which contended that it owned the property, fought back and sued Hollister for interfering with the deal.
A jury later found Hollister guilty of interference and she was ordered to pay $3.47 million to the archdiocese and $1.57 million to the American Idol judge as compensation for court fees.
Meanwhile, the case became even darker when Sister Catherine Rose, 85, died after collapsing in court last month.
A few days later, Sister Rita made headlines with her claims she was so broke from the legal battle she is worried she will go hungry.
Shortly before her death, Sister Catherine Rose asked Katy to drop the legal back-and-forth.
