Two abuse survivors are seeking to transfer their claims against the Christian Brothers to Edmund Rice Education Australia in Victoria’s supreme court, in a case that could have far-reaching consequences for hundreds of other survivors.
Entity That Benefited from Wealth Transfers Fights Liability
Edmund Rice Education Australia, which received vast land and property transfers from the Christian Brothers for nominal amounts, does not consent to being made a defendant. The Victorian judge hearing the case noted it has “high court written all over it,” indicating a protracted and costly legal battle.
The Christian Brothers, one of the worst offending Catholic entities in terms of clergy abuse, is facing hundreds of current and future abuse cases estimated to be worth $774 million. Last month, the religious order told a court it was going broke and proposed a scheme to sell its remaining 36 properties, worth about $217 million, dividing the proceeds among creditors including survivors.
Transfers of Wealthy Assets for $1
The move prompted scrutiny of the transfer of vast tracts of land, school buildings, and homes to the Trustees of Edmund Rice Education Australia for $1 over the past decade. Edmund Rice Education Australia, created in 2007, now runs former Christian Brothers schools and maintains it is an independent entity. It holds net assets of $2.3 billion and $345 million in cash as of December 2024.
Survivors, fearing inadequate compensation if the Christian Brothers order fails, are seeking to transfer their claims to Edmund Rice Education Australia. The first case, brought by two abuse survivors in Victoria, appeared in the Victorian supreme court on Friday. The outcome will have widespread ramifications and is being closely watched by other survivors in Victoria and interstate.
Court Battle Ahead
The court heard that the Trustees of Edmund Rice Education Australia oppose being appointed as a defendant. A hearing in August will examine the historical relationship between the Christian Brothers and Edmund Rice Education Australia. The case will also impact the property sell-off scheme proposed by the Christian Brothers, as successful claims against Edmund Rice Education Australia would reduce the liability on the Christian Brothers.
The matter returns to court next week, with a likely hearing in early August. Support services are available: in Australia, Kids Helpline on 1800 55 1800; Blue Knot Foundation on 1300 657 380. In the UK, NSPCC on 0800 1111; Napac on 0808 801 0331. In the US, Childhelp on 800-422-4453.
