Two abuse survivors are seeking to transfer their compensation claims against the Christian Brothers to Edmund Rice Education Australia in Victoria’s supreme court, a move that could set a precedent for hundreds of other cases. The entity that benefited from vast land and property transfers from the Christian Brothers will fight the bid, triggering a potentially costly battle that has “high court written all over it”, according to the judge.
Christian Brothers’ financial crisis
The Christian Brothers, one of the worst Catholic church entities for clergy abuse, faces hundreds of current and future abuse cases estimated to be worth $774m. Last month, the religious order told a court it was going broke and could no longer afford to meet compensation claims. Instead, it proposed a scheme to sell off its remaining 36 properties, worth about $217m, and divide the proceeds among creditors, including survivors.
Land transfers under scrutiny
The move prompted scrutiny of transfers of vast and wealthy tracts of land, school buildings, and homes to the Trustees of Edmund Rice Education Australia for nominal amounts of $1 over the past decade. Edmund Rice Education Australia, created in 2007, now runs former Christian Brothers schools and maintains it is an independent entity. It reports net assets of $2.3bn and $345m in cash as of December 2024.
Survivors seek alternative compensation
Survivors, fearing they will be left without proper compensation if the Christian Brothers fails, are seeking to transfer their claims to Edmund Rice Education Australia. The first case, brought by two abuse survivors in Victoria, appeared in the Victorian supreme court on Friday. The court heard that the Trustees of Edmund Rice Education Australia did not consent to being made the proper defendant and oppose a push to have the court appoint it as a defendant. A hearing in August will consider the historical relationship between the Christian Brothers and Edmund Rice Education Australia.
Complex legal battle ahead
The court heard the case is highly complex and has “high court written all over it”, indicating a protracted and costly legal battle. The matter will return to court next week, with a hearing likely in early August. The outcome will have significant consequences for other abuse cases in Victoria and interstate, and will affect the Christian Brothers’ property sell-off scheme, as successful claims against Edmund Rice Education Australia would reduce the liability on the Christian Brothers.
