The Catholic Church has suffered a major blow after Victoria's Supreme Court ruled it could not use a legal loophole in a high-profile lawsuit, paving the way for the case to continue.
The court action has been launched by the father of a Melbourne choirboy who has claimed he suffered "nervous shock" after learning of allegations Cardinal George Pell sexually assaulted his son more than two decades ago.
The choirboy died more than eight years ago from a heroin overdose, which his father claims was caused by the psychological impact of the alleged abuse.
He is now suing the Catholic Archdiocese of Melbourne and Cardinal Pell.
Cardinal Pell, who has always vigorously maintained his innocence, had his convictions for the historical allegations quashed by the High Court of Australia.
The Catholic Church has previously conceded it could be sued in this case under Victorian legislation, which abolishes the so-called Ellis defence.
Historically, the church used the Ellis defence to prevent child abuse survivors from suing unincorporated organisations for compensation because its trustees could not be held responsible for the crimes of individuals.
But in a hearing earlier this month, the church argued that only the alleged "primary victim of child abuse" – the choirboy – could launch the legal action and not his father, because only he was allegedly subjected to it.
Lawyers defending the church told the Supreme Court that it could not be sued under the legislation because the choirboy's father does not claim that he was personally subjected to abuse.
But today, Justice Michael McDonald disagreed and ruled that others, aside from direct victims of child abuse, could launch legal action.
"I have concluded that the application of the Act to non-government organisations is not confined to claims founded on or arising from child abuse of the plaintiff," Justice McDonald said.
Justice McDonald ordered the Catholic Church to pay the legal costs of the choirboy's father.
He did not make orders against Cardinal Pell, who he said played "no active role" in the most recent hearing.