The Christian Brothers, a Catholic order with one of the worst clergy abuse records, obtained a moratorium on all claims against it on Thursday, halting trials weeks before they were due to begin. The move affects at least 10 trials scheduled for July and 18 slated for August in the Victorian supreme court, including a case involving Curtis Hogan, a pseudonym, who waited 60 years for justice over alleged abuse at St Patrick's primary school in Ballarat.
Survivor's case abandoned weeks before trial
Hogan alleges Brother Ryan called him to the front of the classroom when he was about nine, told him to sit on his lap, and abused him. He claims two other Christian Brothers also abused him at the same school. His civil trial against the Christian Brothers and a Catholic bishop was due to start in three weeks, but his lawyers at Ken Cush and Associates say it will likely be abandoned.
Sangeeta Sharmin, principal solicitor at Ken Cush and Associates, described the Christian Brothers' court bid as an ambush. "The ambush from the Christian Brothers, who have been preparing this application for months but served firms with documents at 4:30pm for a hearing commencing at 10:00am the next day, has had no regard whatsoever to the impact on individual cases across Australia," she said. "We remind the Christian Brothers of their pastoral responsibilities towards victim survivors."
Financial justification and property selloff plan
The moratorium was granted because the Christian Brothers says it is about to run out of money. It proposes a scheme to sell about 36 properties for $216 million to partially meet estimated liabilities of about $774 million from current and future abuse claims, offering survivors roughly 25 cents for every dollar owed. The scheme is still being considered by creditors, including survivors, who will have final say.
Survivors and their lawyers were shocked by the sudden nature of the bid. Ciara White, abuse lawyer at Slater and Gordon, said survivors face an agonising choice. "That's 25 cents to the dollar," she said. "As a proposition to our clients, it's gut-wrenching. Many have been waiting for decades, and for this compromise to be handed to them – it's devastating."
Asset transfers to EREA under scrutiny
Many survivors have expressed alarm at how the Christian Brothers moved assets to Edmund Rice Education Australia (EREA), an arm of the church created in 2007 that operates former Christian Brothers schools. Property records show vast holdings moved to EREA for amounts as low as $1, including multimillion-dollar homes in Sydney. The Australian Financial Review reported EREA received transferred land worth $891 million, now potentially worth $2 billion. Court documents show the Christian Brothers estimates the transfers were worth about $540 million.
Jodie Harris, partner at Arnold, Thomas & Becker, said survivors are questioning why EREA is not held responsible. "Our clients are rightly asking the question: if the Christian Brothers claim they cannot pay, why aren't the Trustees of Edmund Rice Education Australia held responsible?" she said. "Today, EREA owns and operates the very schools where so many children were abused. They command an annual income of more than a billion dollars and have had hundreds of millions of dollars in property effectively gifted to them. How is it fair or right that they cannot help pay for the damage caused by the Christian Brothers?"
Government concerns and legal proceedings
Lawyers for the federal government voiced concerns in court about potentially "disturbing" asset transfers. Social Services Minister Tanya Plibersek expressed serious concern in parliament on Thursday. "Growing up, I was taught that there was one church and one god, not multiple corporate entities that transfer assets for purposes that are yet to be made clear," she said. "The feeling that no one may be held to account for this abuse – that is perhaps even worse than the financial impacts."
The Christian Brothers says it is not attempting to stop survivors from suing EREA or scrutinising the property transfers. A spokesperson said they have sought "financial assistance from EREA and other Catholic institutions to continue to respond to those who have been harmed." The order also acknowledged the decision may have been unexpected but was necessary to inform creditors of its financial position.
Future of the scheme and survivor impact
The moratorium, granted by the New South Wales supreme court, gives time for survivors to consider the property selloff scheme. It will return to court in August. If survivors and other creditors do not agree, the Christian Brothers have warned they will go into liquidation, leaving even less funds available. The order had settled 21 claims worth $11.4 million prior to the moratorium but had not yet made payment.
In Australia, support is available: Kids Helpline 1800 55 1800, Bravehearts 1800 272 831, Blue Knot Foundation 1300 657 380. In the UK, NSPCC 0800 1111 or 0808 800 5000, Napac 0808 801 0331. In the US, Childhelp 800-422-4453.
