Key facts
- Christian Brothers is facing hundreds of abuse claims estimated at $774m.
- The order claims to be going broke and proposed selling assets to pay creditors.
- Survivors are attempting to transfer their claims to Edmund Rice Education Australia (EREA), which holds $2.3bn in net assets.
- EREA opposes being made liable for the compensation claims.
- A court hearing in August will examine the relationship between the two entities.
Survivors of abuse perpetrated by the Christian Brothers are initiating legal action to hold the Edmund Rice Education Australia (EREA) accountable for compensation claims, as the religious order faces financial collapse.
The Christian Brothers, which has a significant history of clergy abuse, is confronting hundreds of current and future claims estimated to total $774 million. The order recently informed a court that it is financially unable to meet these compensation obligations. It has proposed a scheme involving the sale of its remaining 36 properties, valued at approximately $217 million, with the proceeds to be distributed among various creditors, including abuse survivors.
This proposed resolution has drawn scrutiny towards the substantial land, school buildings, and homes that have been transferred to EREA over the past decade for nominal sums. EREA, established in 2007 and named after the founder of the Christian Brothers, operates former Christian Brothers schools and asserts its independence. As of December 2024, EREA reported substantial net assets of $2.3 billion and $345 million in cash.
Fearing inadequate compensation from the financially strained Christian Brothers, survivors are seeking to transfer their claims to EREA. The first such case, brought by two abuse survivors in Victoria, appeared before the Victorian supreme court. The court heard that EREA does not consent to being named as the defendant and is opposing the survivors' attempt to have the court appoint it as such. A hearing is scheduled for August to examine the historical relationship between the Christian Brothers and EREA.
Legal representatives described the case as complex with "high court written all over it," suggesting a protracted and expensive legal battle. The outcome of this case is expected to have significant implications for other survivor claims in Victoria and across Australia, as well as for the Christian Brothers' proposed property sell-off scheme. If survivors succeed in suing EREA, it could reduce the financial liability of the Christian Brothers.