SYDNEY, Australia — A Catholic order in Australia has halted a wave of abuse compensation cases because it is running out of money, leaving some victims feeling like their “suffering is being extended.”
The Congregation of Christian Brothers, which ran more than 100 schools across Australia at the height of its influence, said it had paid out more than AU$480 million ($330 million) to abuse victims since 1980.
It successfully applied in the Supreme Court of New South Wales to pause for now a spate of upcoming cases on Thursday, arguing that further payouts would lead to financial ruin.
Instead, the order has proposed to sell off property and assets to pay for settlements negotiated out of court.
“We accept that we have now reached a pivotal moment facing a very difficult financial position, and consequently the proposed scheme is the most responsible course of action,” the Oceania Province of the Christian Brothers said in a statement posted online.
“The Province has been responding to those who have experienced abuse in our facilities for more than four decades,” it added. “Over the past ten years, the number of claims and quantum of settlements has accelerated.”
Victims with outstanding claims against the Christian Brothers will be asked to vote on whether to accept the scheme.
A law firm representing many victims said the maneuver had cast uncertainty over efforts to seek justice.
“Many survivors have told us it feels as though their suffering is being extended and old wounds are being reopened,” said lawyer Stephanie Brown from Slater and Gordon.
“When institutions that presided over child abuse ask a court to freeze claims and channel compensation through a limited fund, there is a real risk of a new form of institutional harm,” she added. “One that undermines hard-won outcomes and treats survivors’ claims as just another liability to be managed.”
Christian Brothers transferred many of its most valuable assets years ago to a separate organization, which continues to oversee schools in Australia.
Victims have raised concerns that this transfer effectively shields assets that could otherwise be sold for compensation payouts.
“Survivors are entitled to ask whether those decisions ever truly put their right to compensation first,” said Brown.
Founded by wealthy Irish businessman Edmund Rice in the early 19th century, the Christian Brothers set up a flourishing network of Catholic schools that stretched from Europe to Africa and Australia.
But the order has been hit by an avalanche of abuse claims in recent decades, paying out hundreds of millions of dollars to victims in Canada, Ireland, the United States and further afield.
“We acknowledge and regret that incidents of sexual abuse and assault of innocent and vulnerable children have occurred in institutions conducted by the Christian Brothers,” reads a statement on the website of the Oceania Province, which covers Australia, New Zealand, Papua New Guinea and East Timor. AFP