Christian Brothers abuse victims to get 'full' compensation after property sale reversal

In a significant reversal following weeks of intense public pressure, the entity holding vast property holdings gifted by the Christian Brothers has agreed to fully compensate survivors of historical abuse. The Christian Brothers, a Catholic order with a documented history of clergy abuse, had previously announced they were facing bankruptcy and could not meet civil claims from survivors.

Last month, the order proposed selling 36 properties, valued at approximately $217 million, to distribute proceeds among creditors, including survivors who were owed an estimated $774 million. This announcement sparked considerable backlash and led to scrutiny of property transfers between the Christian Brothers and a related entity, the Trustees of Edmund Rice Education Australia (EREA). EREA was established in 2007 to manage former Christian Brothers schools, and over the past decade, the Christian Brothers had gifted lucrative property holdings to EREA for nominal amounts, such as $1.

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We support the revised scheme because it is simply the right thing to do for victims and survivors to provide them a just and sustainable pathway.

Survivors were informed that these gifted properties were off-limits for their compensation claims. EREA had also refused to replace the Christian Brothers as the defendant in legal claims, prompting survivors to seek court orders to compel them to do so. However, on Friday, both entities issued statements confirming that Edmund Rice had agreed to fully compensate victims and survivors.

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This decision will also support the long-term sustainability of the educational ministry, including more than 44,000 students entrusted to EREA’s stewardship.

Dr. Stephen Brown, chair of the Trustees of Edmund Rice Education Australia, stated his organization's commitment to supporting abuse survivors, calling the revised scheme "the right thing to do" for victims and survivors, providing a "just and sustainable pathway." He added that this decision would also support the long-term sustainability of the educational ministry, which serves over 44,000 students.

The new proposal ensures that the Christian Brothers' remaining 36 properties will be sold to pay survivors with "outstanding settlements or judgments." Other claimants whose cases are "not yet crystallised" can pursue claims against EREA or through the government-run national redress scheme. EREA has consented to replacing the Christian Brothers as the defendant in these future cases. Grace Wilson, a partner at Rightside Legal representing numerous claimants, hailed the outcome as a major victory, stating, "Make no mistake: survivors fought for this success. Edmund Rice are folding because the law is against them."

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Make no mistake: survivors fought for this success. Edmund Rice are folding because the law is against them.