A Victorian Supreme Court finding against the Catholic Diocese of Ballarat may set a "historic" precedent for survivors of clergy abuse seeking financial compensation, an institutional abuse lawyer says.
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On Monday, the Supreme Court of Appeal denied an attempt by the Ballarat Diocese to appeal an earlier ruling which found the diocese liable for damages against a man abused by former Catholic priest Bryan Coffey.
The Diocese oversees all Catholic the Wimmera, Grampians and Mallee, as well as Ballarat.
The ruling, which was subject to Monday's appeal hearing, occurred in 2020, and saw the man - referred to as DP - awarded $230,000 in damages for psychological injuries which he sustained as a result of assaults by Coffey in his parents' home in 1971.
The Diocese of Ballarat appealed the decision, arguing that Coffey was not a formal employee of the diocese, and could not be vicariously liable for his actions.
Vicarious liability occurs when a person or organisation is liable for the actions of another, such as an employee or child.
The diocese further argued that it was not liable for Coffey's actions, as his employment as a priest did not provide an opportunity for the assault to take place.
The legal argument required the court to explore the responsibilities of a priest and their relation to their governing diocese.
Despite not being an employee or an independent contractor of the diocese in a strict sense, the Supreme Court justices found enough of an employment relationship existed between Coffey as a priest and the diocese to warrant vicarious liability.
"Coffey's livelihood was provided for by the diocese. In performing his work, Coffey wore the uniform of the Roman Catholic priest," the findings read.
"In a real and relevant sense, Coffey was the servant of the diocese, notwithstanding that he was not, in a strict legal sense, an employee of it."
Hopefully this will be another step to encourage people to understand too that they are not alone, and hopefully help them come forward.
- Dr Judy Courtin
Clergy abuse survivor Phillip Nagle called the ruling a win for all victims of institutional abuse.
Mr Nagle was assaulted when he was a nine-year-old student at a St Alipius Christian Brothers Primary School.
"The Catholic Church don't want to take responsibility for their employees. They say they are not their employees, but they are. If they are asked to do a job by the Catholic Church, they are employees," he said.
He said the process of making a claim often re-traumatized survivors. "It is not a nice process and the Catholic Church should really get their act together to make the process more non-confrontational," he said.
"They are bringing some high-powered lawyers and it is pretty scary for a victim to go through that process."
Institutional abuse lawyer and survivor advocate Judy Courtin said the finding provided a "historic" outcome, to broaden the definition of vicarious liability.
"In the past it needed to be an employee and the abuse would have needed to occur on the grounds or property of the organisation or church," Ms Courtin said.
She said the outcome would likely set a legal precedent, allowing more survivors to come forward and push their damages claims.
"It is still a very, very difficult thing to do, disclose and come forward. People are still carrying that burden of guilt and shame, and they are carrying it for decades," Ms Courtin said.
They are bringing some high powered lawyers and it is pretty scary for a victim to go through that process.
- Phillip Nagle
"Hopefully this will be another step to encourage people to understand too that they are not alone, and hopefully help them come forward."
In the court findings, the presiding Supreme Court justices discussed the cases of Bazley vs Curry 1999, in the Supreme Court of Canada and Maga vs the Archbishop of Birmingham 2010, both of which were landmark findings of vicarious liability for sexual abuse perpetrated by employees of non-profit organisations.
Ms Courtin said she was encouraged that Australia now had a similar landmark legal precedent to determine liability in abuse cases. "Victoria has been the forerunner with many of these reforms in this area," Ms Courtin said.
"Victoria was the first to have a parliamentary inquiry into the handling of clergy abuse and the first to bring about legislative reforms around the statute of limitations."
A spokesperson for the Diocese declined to comment on the findings.
Affected by this story? There is help available.
You can phone the Ballarat Centre Against Sexual Assault, in Sebastopol, on 5320 3933, or free-call the crisis care line 24 hours on 1800 806 292. Or phone Lifeline on 13 11 14, the Blue Knot Foundation on 1300 657 380, or Relationships Australia on 1300 364 277.