The Christian Brothers, a Catholic order with one of the most severe clergy abuse records, obtained a moratorium on all claims against it on Thursday, halting multiple upcoming trials. The moratorium was granted because the order claims it is about to run out of money and instead proposes a scheme to sell approximately 36 properties for $216 million to partially meet estimated liabilities of about $774 million from current and future abuse claims.
Survivor's 60-Year Wait for Justice Derailed
Curtis Hogan, a pseudonym, alleges he was abused by Brother Ryan at St Patrick's primary school in Ballarat when he was about nine years old. According to court documents, Brother Ryan called Hogan to sit on his lap, breathing heavily, and told him, "You are my favourite boy." Hogan also alleges abuse by two other Christian Brothers at the same school. After waiting 60 years for justice, his civil trial against the Christian Brothers and a Catholic bishop was due to begin in three weeks in the Victorian Supreme Court. However, his lawyers at Ken Cush and Associates say the trial will likely be abandoned.
Massive Disruption to Scheduled Trials
The moratorium affects 10 trials against the Christian Brothers that were set to take place this month, with another 18 slated for August. Sangeeta Sharmin, principal solicitor at Ken Cush and Associates, described the Christian Brothers' actions as an "ambush," noting that they had been preparing the application for months but served firms with documents at 4:30 pm for a hearing commencing at 10:00 am the next day. "This 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, especially if they will be maintaining denials of any kind."
Proposed Scheme and Asset Transfers Under Scrutiny
The Christian Brothers' proposed scheme is still being considered by creditors, including survivors, who will have final say on whether it goes ahead. Many have expressed alarm at how the Christian Brothers have moved assets to another arm of the church, Edmund Rice Education Australia (EREA), over the past decade. Property records obtained by The Guardian show vast holdings of property transferred from the Christian Brothers to EREA, including multimillion-dollar homes in Sydney, for amounts of $1. The Australian Financial Review reported that EREA received transferred land worth $891 million, which could now be worth $2 billion. Court documents show the Christian Brothers estimates the property transfers were worth about $540 million.
Government and Legal Concerns
On Thursday, lawyers for the federal government voiced concerns in court about potentially "disturbing" asset transfers. Tanya Plibersek, Minister for Social Services, expressed serious concern in parliament, stating, "The feeling that no one may be held to account for this abuse – that is perhaps even worse than the financial impacts." Jodie Harris, partner at Arnold, Thomas & Becker, questioned why EREA, which operates the schools where abuse occurred and commands an annual income of over a billion dollars, cannot help pay for the damage. The Christian Brothers maintain that the moratorium is not intended to impede claimants from bringing actions against EREA.
Survivors Face Devastating Choice
If survivors and other creditors do not agree to the scheme, the Christian Brothers have warned they will go into liquidation, leaving even less funds available. Slater and Gordon Lawyers abuse lawyer Ciara White described the proposed scheme as offering only 25 cents to the dollar to meet liabilities, calling it "gut-wrenching" for survivors who have waited decades. The moratorium granted in the New South Wales Supreme Court will give time for survivors to consider the property selloff scheme, with a return to court in August.
