Abuse survivors have won their latest fight against the Christian Brothers, but the victory came after immense pain and suffering. Last month, the Catholic order announced it was going broke and could no longer meet survivors' claims, but after sustained pressure, it agreed to a full payout.
Early last month, Peter, a survivor of abuse at the Christian Brothers College in St Kilda in the 1980s, was told the order had agreed to settle. Two weeks later, on 22 June, the Christian Brothers issued a statement saying it was going broke and would sell its remaining 36 properties for about $216m, dividing proceeds among survivors and creditors. Survivors would be left shortchanged, with total liability estimated at $771m.
History of abuse and property transfers
The Christian Brothers have an appalling history of sexual abuse, with 22% of its brothers in Australia alleged perpetrators, the second highest rate of any Catholic order. The royal commission into institutional responses to child sexual abuse found 1,015 people made claims against the order between 1980 and 2015, naming 483 alleged perpetrators across 100 schools.
Investigations revealed the order had transferred hundreds of millions of dollars worth of properties to Edmund Rice Education Australia (EREA) for $1 each, making them off-limits to survivors. EREA refused to sell the properties or replace the Christian Brothers as a defendant.
Housing convicted abusers
Court documents showed the Christian Brothers kept nine convicted child abusers within the order, citing a 'Gospel imperative' to care for them. The order provided financial support including housing, health insurance, and a monthly allowance of $1,200. It also set aside $15.6m for future support of brothers. Further investigation revealed the order housed two brothers with horrific abuse histories, including one who preyed on orphans and another kept in teaching positions for decades after officials knew of his offending.
Backdown and full compensation
On Friday, after pressure from survivors, lawyers, government, and media, the Christian Brothers and EREA released statements. EREA agreed to take over as defendant for unresolved and future claims. The sale of the 36 properties will be used to pay survivors who had already settled. Under the new scheme, survivors should be paid out in full.
Grace Wilson, a partner at Rightside Legal representing Peter, said: 'Edmund Rice are folding because the law is against them. Other Orders should take note: transferring their wealth away will not protect them from their legal or moral obligations.'
