A lawyer representing multiple victims of child sexual abuse at Christian Brothers institutions says the order appears to be trying to “squib” on compensation payments.
The Congregation of Christian Brothers Oceania Province revealed yesterday it was seeking to sell off its remaining assets to pay abuse victims, who would become creditors.
Christian Brothers said the order would “come to an end” at the conclusion of the asset sale, although schools established by the order would be unaffected.
It said its assets were valued at around $216 million, and comprised about 36 properties around Australia.
Christian Brothers said the money raised from the sale of its assets would not be enough to pay the full amount of compensation that victims of abuse at its institutions would be entitled to now and into the future.
Schools founded by Christian Brothers, including St Mary’s College in Melbourne, would not be subject to the asset sale as they are owned by a separate entity, Edmund Rice Education Australia.
Christian Brothers outlined its asset sale plan in a statement, saying the scheme had to be approved by 50 per cent of creditors.
“We accept that we have now reached a pivotal moment facing a very difficult financial position, and consequently the proposed scheme is the most responsible course of action,” it said.
“The creditors eligible to participate in the proposed scheme will include the victims and survivors of abuse experienced in our facilities (including those who have not yet come forward).
“Their interests, as well as all those of all our other creditors, remain our highest priority.“
Lawyer Laird Macdonald accused Christian Brothers of trying to ‘squib’ on comopensation payments to abuse victims. (ABC News: Scott Jewel)
Lawyer Laird Macdonald, who represents a number of abuse victims, said the move came as a shock to his clients.
“It really is an unprecedented step. No religious order in Australia has called together a collective group of plaintiff lawyers and said ‘look, the cupboard is bare’,” he said.
“I would be concerned that this might provide a template for other orders to effectively squib on their responsibility to pay their victims and their survivors proper compensation.
“There is a general concern among my clients that they’ve finally had their day in court or they’ve finally resolved their case and suddenly the ground is shifting under them again.“
Christian Brothers said yesterday it would seek a “stay” on current and future civil proceedings against it by abuse victims.
It said it had paid in excess of $480 million in compensation and costs to claimants since 1980.
Schools established by Christian Brothers were moved under the ownership of Edmund Rice Education Austraia and will not be inckluded in the asset sell off. (ABC News)
“Over the past ten years the number of claims and quantum of settlements has accelerated,” Christian Brothers said.
“Consequently, in light of the difficult financial position we find ourselves in, and after extensive engagement with our professional advisors, we have reached the position that has been announced on 22 June 2026.”
Christian Brothers said if the scheme was not approved by creditors, the order would be forced into liquidation which would result in even less money being paid out.
Mr Macdonald said the move was likely to face legal scrutiny to ensure victims get the compensation they were entitled to.
“The response from the Christian Brothers has been ‘oh well we’re just not going to pay. We can’t pay because a selection of our assets won’t cover our liability so we want to opt out’,” he said.
“The notion that the Christian Brothers across the board will disappear doesn’t appear to be correct.
“Their schools, the land on which their schools sit, all of that appears to be something that they will seek to maintain into the future despite the fact people have been abused in those schools.”
