The Catholic Archdiocese of Melbourne has been ordered to pay $1.9 million in damages to an altar boy who was sexually abused by one of its priests.
The altar boy was sexually abused three times by Catholic priest Desmond Gannon between 1968 and 1970.
Gannon was convicted and jailed for the abuse in 2009.
But the victim later lodged civil action against current Melbourne Archbishop Peter Comonsoli, claiming damages for injuries he suffered as a result of the abuse.
He alleged there was negligence by the Archdiocese and that it was vicariously liable for the abuse.
On Thursday Supreme Court judge Andrew Keogh agreed with the plaintiff, ordering the church to pay the $1.9 million for pain and suffering and economic loss.
When the former altar boy gave evidence to the civil trial in March, he said the abuse had a profound impact on his life, leading to shame, substance abuse and mental illness.
"It's been eating at me ever since," he told the court.
Damage caused by abuse 'immediate and ongoing', judge says
In his judgement, Justice Keogh said the abuse was horrific and he accepted the victim's evidence that it immediately disrupted his education and relationships with friends and family.
"The damage caused by the abuse was immediate and ongoing, resulting in [the victim] continuing to suffer complex post-traumatic stress disorder, chronic dysthymia with episodes of major depression, alcohol abuse and antisocial personality disorder," the judge said.
In court, the church had argued the Archdiocese should not be liable for Gannon's actions because it was an "amorphous, undefined thing to which liability could not attach".
However, Justice Keogh rejected that submission.
"The Archdiocese is to be treated as if it were incorporated at the relevant time," the judge said. "The Archdiocese had a structure imposed by Canon Law. The Archbishop was the pastor of the Archdiocese, and had the power to govern the Archdiocese."
Meanwhile, the victim's lawyer, Michael Magazanik, said the outcome was a landmark judgement.
"This is the first time a survivor has dragged the Catholic Archdiocese of Melbourne into court, taken them all the way to the end and got a verdict," Mr Magazanik said.
He said the 150-page judgement made by Justice Keogh would set precedents for similar cases.
"That decision on negligence — that the Church's structure and processes, and lack of policies was negligent — makes it much easier for survivors to sue," Mr Magazanik said.
"My client is absolutely delighted about the decision, both because he's held the church to account and because it opens the door and makes it much easier for hundreds of other survivors of clerical abuse."
In 1993, Gannon admitted to the church he had sexually abused children, but he was allowed to resign on health grounds and was granted the title Pastor Emeritus.
Two years later in 1995, Gannon was convicted of nine counts of sexual abuse of four boys aged between 11 and 12. He was sentenced to one year in jail.
He was convicted again over separate abuse charges in 1997, 2000 and 2003.
The church received 25 child sexual abuse claims against Gannon and has paid compensation to 22 people under its Melbourne Response scheme.
The Child Abuse Royal Commission heard they received an average of about $33,000 each.