The Catholic Diocese of Maitland-Newcastle has been found to be directly and vicariously liable for the childhood sexual abuse of a man at Wallsend 55 years ago.
The victim, who is in the late stages of a terminal illness, has been awarded more than $500,000 in damages in the NSW landmark case against the Catholic Church.
This ruling highlights the potential for survivors of historical institutional child sexual abuse perpetrated by a priest to seek greater compensation in cases where diocese are held vicariously liable for the criminal actions of priests.
The victim, referred to as AA, alleged he was abused by Father Ron Pickin while he was a student at Wallsend High School in 1969.
The court heard Fr Pickin, who died in 2015, was the parish priest at St Patrick's Catholic Church in Wallsend and attended the high school to provide religious scripture classes.
In addition to scripture classes, he also invited boys, including AA, to the presbytery on Friday nights.
He provided them with cigarettes and alcohol and allowed them to play on an old poker machine he had at the presbytery.
AA said that on six occasions he became drunk to the point that he fell unconscious or blacked out in the bedroom where the poker machine was kept. When he came to, he found Fr Pickin forcing him to perform oral sex.
In a judgement published this week, Acting Supreme Court Justice Monika Schmidt said AA "had a difficult life" after leaving school in Year 10.
The court heard he was "unable to tell anyone about the abuse, not trusting anyone despite thoughts of the abuse and resulting anxiety having troubled him his whole life".
AA revealed the alleged assault against him earlier this year.
His legal team argued the diocese should be held legally responsible for Fr Pickin's alleged acts because he was an employee.
The diocese did not accept the alleged abuse occurred.
Further, it argued that Fr Pickin was not an employee and that "it had not placed him in a position akin to employment, or in any position of power, control or authority over AA".
Acting Justice Schmidt, who found vicarious liability had been established, said she was satisfied that AA was sexually assaulted by Fr Pickin.
"Not only did the role he was appointed to give Fr Pickin access to children in the parish, [it was] arguably even greater access than he might have had if he had been a mere employee - it required him to actively engage with them," she said.
"That role also led to him being appointed to teach the Catholic religion at the local state high school ... giving him similar access to children that an employee would have had."
AA sought damages and was represented by the Sydney law firm Koffels.
"AA is a landmark case in NSW, as the first judgement where the courts have found a Diocese both negligent and vicariously liable for sexual abuse committed by a Catholic priest," Koffels' managing counsel Aaron Koffel said.
A key outcome of the Diocese of Maitland-Newcastle being vicariously liable in this matter is that damages are not capped by the Civil Liability Act but are instead determined under common law.
This significantly increases the total damages in historical cases like AA's as they must pay interest on general damages (for pain and suffering) at a rate of 2 per cent per annum.
AA was awarded $260,000 for general damages, which together with interest totals $564,000.
"The broader issue of whether a Diocese can be held vicariously liable for the criminal actions of a priest is still unsettled law. The High Court's upcoming judgment in Bird v DP, a Victorian case in which the Diocese of Ballarat is appealing a similar decision, will be key in shaping future rulings," Koffel said.
"We are waiting to see if the Diocese of Maitland-Newcastle will appeal this decision.
"This ruling creates the possibility for more successful claims, as Dioceses could now be required to pay survivors of historical abuse damages in circumstances where prior knowledge of the risk posed by certain priests cannot be established. It is likely that Dioceses and their insurers will need to adjust their reserves upward."
AA's case was expedited due to AA's health. A directions hearing is scheduled for next week.
A spokeswoman for the Diocese of Maitland-Newcastle said the diocese would not comment on active legal cases.
"The Catholic Diocese of Maitland-Newcastle is committed to providing a just and equitable response to all those who allege harm caused by child sexual abuse," she said.
"On rare occasion a claim cannot be settled between the parties and regrettably the courts are required to resolve the matter. The Catholic Diocese of Maitland-Newcastle respects the judicial processes available to both parties in a civil proceeding.
"The Catholic Diocese of Maitland-Newcastle continues to acknowledge and express our sorrow for the harm caused to victims and survivors of abuse and the failures which occurred."
Support:
- Healing & Support (Zimmerman Service) - Contact 4923 0636 zimmermanservice@healingandsupport.org.au
- The Clergy Abused Network (C.A.N) - Contact 0411 109 810 or 0411 108 465