Survivors Launch Bid to Hold Edmund Rice Education Australia Liable
Two abuse survivors are seeking to transfer their compensation claims against the Christian Brothers to Edmund Rice Education Australia (EREA) in the Victorian supreme court. The entity, which benefited from vast land and property transfers from the Christian Brothers, does not consent to being made a defendant, a judge heard, describing the case as having 'high court written all over it'.
The Christian Brothers, one of the Catholic church's worst offending entities for clergy abuse, faces 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 could no longer meet compensation claims, proposing a scheme to sell off its remaining 36 properties worth about $217 million and divide proceeds among creditors, including survivors.
Background of Property Transfers
This move prompted scrutiny of the transfer of valuable land, school buildings, and homes to the Trustees of Edmund Rice Education Australia for nominal amounts of $1 over the past decade. EREA, created in 2007 and named after the Christian Brothers' founder, now runs former Christian Brothers schools and maintains it is an independent entity. It reports 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 EREA. The first case, brought by two abuse survivors, appeared in the Victorian supreme court on Friday.
Court Proceedings and Opposition
The court heard that the Trustees of Edmund Rice Education Australia did not consent to being made the proper defendant and oppose a push for the court to appoint it as a defendant. A hearing in August will consider the historical relationship between the Christian Brothers and EREA. The case is highly complex and likely to lead to a protracted and costly court battle, with significant consequences for other cases in Victoria and interstate.
The matter will return to court next week, with a hearing expected in early August. It will also affect the property sell-off scheme proposed by the Christian Brothers, as successful claims against EREA would reduce the liability on the religious order.
