Former Christian Brothers schools to compensate victims of clerical abuse
Some of Australia’s most elite schools will help pay the wages of hundreds of victims of clergy sexual abuse after reaching a deal with the Christian Brothers that they say will be overturned within months.
Documents obtained by this imprint showed that the Christian Brothers had previously transferred some of their most valuable colleges and properties to a separate foundation, Edmund Rice Education Australia, for just $1 each.
In Victoria, transfers of the prestigious St Kevin’s College in Toorak, Geelong’s St Joseph’s College and Parade College in Bundoora were made in June 2015; Just three months before the Royal Commission into Institutional Response to Child Sexual Exploitation recommended that Ellis Defense be disbanded. St Kevin’s has since separated from Edmund Rice Education Australia.
Edmund Rice Education Australia announced on Friday it had agreed a revised plan to ensure full compensation is paid to victims of past sexual abuse allegations.
“We are trying to reassure you today that we will take steps to address future funding shortfalls,” said EREA chief executive Stephen Brown.
“We support a revised plan because it is the right thing to do to provide a fair and sustainable pathway for victims and survivors.” he said.
The chairman said it would take six to eight weeks for the “complex arrangements” to be documented before they could be put to a vote of creditors, and the court would have to approve it.
Lawyers for the religious order told the NSW Supreme Court earlier this month it estimated it owed survivors $774 million in current and future claims, but only had $216 million worth of assets.
Brown said 61 schools run by Edmund Rice will continue to operate.
Lawyer Laird Macdonald, of Rightside Legal, said the Christian Brothers’ handling of the matter had worsened his clients’ trauma.
“Our customers have had a very difficult few weeks.
“The idea that the Christian Brothers were bankrupt was always a farce. The attempt to evade responsibility was shameful. We fought hard to hold them accountable, and today they have abandoned this appalling plan.”
The Christian Brothers said in a statement that this meant the educational organization had settled with the plaintiffs, but also said it would “assume responsibility and liability for all current and future legal proceedings.”
The religious order said this would also include people who were before the National Compensation Scheme.
“The Board of Trustees of the Christian Brothers thanks EREA for engaging in this process and accepting a path forward that will provide a much better outcome for our creditors, including victims and survivors of abuse.”
Earlier this month all sexual abuse allegations against the religious sect in Australia were suspended after NSW Supreme Court Justice Scott Nixon found they faced financial ruin despite property transfers.
The Catholic order was granted a moratorium, giving survivors time to consider whether they would support the Christian Brotherhood’s sale of the property, raise money or pursue other legal avenues.
A directions hearing will be held at a later date.
Caroline Schelle is an education reporter and joined The Age in 2022. He had previously served in courts in AAP.Connect with: X or email.
