The Christian Brothers have sought a permanent halt to hundreds of abuse cases, arguing insolvency, and proposed a creditor scheme to divide proceeds from property sales. Survivors express deep betrayal, with one comparing it to being stabbed in the back.
Legal halt and survivor impact
Last week, the Christian Brothers requested a moratorium on all civil proceedings, stating they cannot afford to meet claims. They plan to sell remaining property and set up a scheme outside court, dividing proceeds among creditors, including survivors. One survivor was due for trial on Monday, but it was aborted. He said, "After every delaying tactic... to be told there is little, perhaps no money available... is like my white-collared, black-robed rapist returning to finish me off with four deep thrusts of a sharp, long-bladed knife to the back."
Property transfers under scrutiny
Church property records show the Christian Brothers transferred vast wealth—including land, school buildings, and multimillion-dollar homes—to Edmund Rice Education Australia (EREA) for $1 each over the past decade. EREA stated those assets will not be sold to help survivors. The attorney general Michelle Rowland's spokesperson said the government takes alleged attempts to hide assets from victims extremely seriously.
Lawyers and survivors react
Jodie Harris, partner at Arnold Thomas & Becker, which holds 78 claims, said her firm will scrutinize the transfers with "laser focus." Survivors see it as the Christian Brothers protecting themselves at their expense. Another survivor who settled recently expected payment next week, but it will not be made; he had taken out a loan based on that expectation. A third survivor from St Kevin's College in the 1970s said, "Failed relationships, depression and repeated suicide attempts have haunted me... Last week, when I heard about the property transfers, I felt betrayed—again."
Financial details and future scheme
EREA's financial reports indicate transferred land worth $891 million as of December 2024. Proxy adviser Dean Paatsch estimates the property could now be worth $2 billion. The Christian Brothers say the scheme will scrutinize transfers and is not designed to stop survivors from suing EREA. A spokesperson said if the moratorium is not granted, the order would enter liquidation. "Seeking a moratorium... ensures all claimants will be treated equally," they added.
