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The entity that benefited from vast land and property transfers from the Christian Brothers will fight a move by abuse survivors to make it liable for compensation claims, triggering a potentially costly battle that has “high court written all over it”.
The Christian Brothers has a shocking record of clergy abuse – one of the worst of any Catholic church entity – and is facing hundreds of current and future abuse cases estimated to be worth $۷۷۴m.
But the religious order last month told a court it was going broke and could no longer afford to meet the compensation claims, instead proposing a scheme where it would sell off its remaining ۳۶ properties, worth about $۲۱۷m, and divide the proceeds between a range of creditors, including survivors.
The move prompted scrutiny of the transfer of vast and wealthy tracts of land, school buildings and homes to another entity, the Trustees of Edmund Rice Education Australia, for nominal amounts of $۱, over the past decade.
Edmund Rice Education Australia was created in ۲۰۰۷ and now runs former Christian Brothers schools. It is named after the founder of the Christian Brothers, but maintains it is an independent entity. It continues to hold vast wealth, reporting net assets of $۲.۳bn and $۳۴۵m in cash as of December ۲۰۲۴.
Survivors, fearing they will be left without proper compensation when the Christian Brothers order fails, are seeking to transfer their claims to Edmund Rice Education Australia.
The first case to attempt to do this, brought by two abuse survivors in Victoria, appeared in the Victorian supreme court on Friday. Their case will have widespread ramifications and is being closely watched by other survivors in Victoria and interstate.
The court heard the Trustees of Edmund Rice Education Australia did not consent to being made the proper defendant to the survivors’ claims.
It is also opposing a push to have the court appoint it as a defendant. That will require a hearing in August, which will consider the historical relationship between the Christian Brothers and Edmund Rice Education Australia.
The court heard the case was highly complex and had “high court written all over it”, indicating a protracted and costly court battle.
The matter will return to court next week and a hearing is likely to take place in early August.
It will have significant consequences for other cases before the Victorian courts. It will also have ramifications for the property sell-off scheme proposed by the Christian Brothers, because if survivors are able to sue Edmund Rice Education Australia, it will reduce the liability on the Christian Brothers.
