Abuse victims and survivors holding settlements or court judgments against the Christian Brothers will be paid in full, after the order’s trustees announced it would hand responsibility for compensation claims to Edmund Rice Education Australia. Source: The Catholic Leader.
In a statement on Friday, the Trustees of the Christian Brothers in Oceania Province said they had signed a memorandum of understanding with the Trustees of EREA to develop a revised creditors’ scheme to deliver payments for all creditors.
The move follows the Christian Brothers’ announcement last month that it faced financial collapse after 183 years in Australia, with a portfolio of about 36 properties, which they valued at about $216 million, to satisfy creditors.
Under the key principles set out in the MOU, the Christian Brothers’ properties would be sold off by scheme administrators to build a fund for creditors.
Abuse claimants who already hold settlements or court judgments would be paid in full as funds became available.
Survivors whose claims were not yet finalised would no longer need a claims assessment process under the Christian Brothers’ scheme.
Instead, they could pursue EREA directly, through civil litigation or the National Redress Scheme.
Once the revised scheme takes effect, EREA has agreed to be named the proper defendant in all abuse claims against the Christian Brothers, taking on responsibility for managing, defending and paying settlements and judgments in those cases.
The Trustees said an extra six to eight weeks was needed to finalise the details of the revised scheme and consult creditors and their legal advisors before a vote would be held.
As with the original proposal, the plan still requires approval from both creditors and the court, with a directions hearing to be sought to set a new timetable.
The Trustees thanked EREA for engaging in the process and agreeing to the proposed pathway.
FULL STORY
Christian Brothers strike deal with EREA to ensure abuse victims and survivors paid in full (The Catholic Leader)
RELATED COVERAGE
Statement from the Trustees of the Christian Brothers Oceania Province (Christian Brothers Oceania Province)
