Abuse survivors launch bid to transfer claims to entity that benefited from Christian Brothers’ wealth | Australian law
The organisation, which has benefited from massive land and property transfers from the Christian Brotherhood, will fight a move by abuse victims to make it liable for compensation claims, triggering a potentially costly battle “with the high court written all over it”.
The Christian Brothers have a shocking record of clergy abuse – one of the worst among Catholic church institutions – and face hundreds of current and future abuse cases estimated to be worth $774 million.
But the religious order told a court last month that it was bankrupt and could no longer afford compensation claims; Instead, he proposed a plan in which he would sell his remaining 36 properties, worth about $217 million, and split the proceeds among various creditors, including survivors.
The move has led to scrutiny of the transfer over the past decade of large and rich tracts of land, school buildings and homes to another organisation, the Edmund Rice Education Australia Trustees, for nominal amounts of $1.
Edmund Rice Education Australia was established in 2007 and currently runs former Christian Brothers schools. It takes its name from the founder of the Christian Brothers, but maintains that it is an independent organization. He continues to have a large fortune, with net assets reported at $2.3 billion and $345 million in cash as of December 2024.
Survivors are seeking to transfer their rights to Edmund Rice Education Australia, fearing they will not receive appropriate compensation when the Christian Brothers’ order fails.
The first case brought to this effect by two Victorian abuse survivors was heard in the Victorian Supreme Court on Friday. Their case will have far-reaching consequences and is being closely watched by other survivors in Victoria and interstate.
The court heard that the Trustees of Edmund Rice Education Australia did not consent to be named as eligible defendants against the survivors’ claims.
He also opposes pressure for the court to appoint him as a defendant. This will require a hearing in August to discuss the historical relationship between the Christian Brothers and Edmund Rice Education Australia.
The court heard the case was extremely complex and had “high court writing written all over it”, indicating a protracted and costly court battle.
The matter will return to court next week, with the hearing likely to be held in early August.
This will have significant implications for other cases in Victorian courts. This will also have implications for the property sale plan proposed by the Christian Brothers, as the Christian Brothers’ liability will be reduced if survivors sue Edmund Rice Education Australia.
