13 Mar 2025Victorian government pays $8 million settlement to sexual abuse survivor
Recent cases in Australia demonstrate that institutions can be vicariously liable for sexual abuse.
In 2024 a survivor of sexual abuse by a teacher at a Melbourne primary school was awarded an $8 million settlement against the Victorian Education Department, in what is believed to be the largest publicly known compensation payment to an abuse survivor in Australia.
The survivor was among many students abused by the teacher in the 1960s and 70s while authorities turned a blind eye.
The survivor fought for decades to bring the abuser to justice, but the teacher died while awaiting trial. The government settled the survivor’s claim a week before the case was due to reach Victoria’s Supreme Court, the ABC reported. (Please see Beaumaris Primary School sexual abuse survivor reaches record $8 million settlement with Victorian government, ABC News, 10 October 2024.)
Catholic Diocese of Maitland-Newcastle found vicariously liable for abuse
A week earlier the Catholic Diocese of Maitland-Newcastle was found in the NSW Supreme Court to be “directly and vicariously liable” for the childhood sexual abuse of a high school boy by a priest 55 years ago. (Please see Catholic Church found liable for historical sexual abuse by Newcastle priest, ABC News, 3 October 2024.)
The survivor was awarded more than $500,000 in general damages and interest, despite the church arguing the priest was not employed by the diocese and it therefore held no authority over him. The church also disputed that the abuse had occurred.
Authorities increasingly fighting sexual abuse claims in court
Authorities such as churches are increasingly fighting claims through the courts, rather than settling beforehand.
In 2021 I fought for two and a half years of tough litigation against the Catholic Church, to resolve what was then Australia’s highest damages award for a victim of institutional abuse – an out-of-court settlement of $3.7 million.
The church finally offered a reasonable settlement just weeks before the case was due to be heard in court.
That is the reason authorities such as churches, government departments and institutions argue that the person accused of historical sexual abuse, such as a priest, was neither an employee nor acting as their agent.
Courts generally accepted church is vicariously liable for abuse
However, the courts have generally accepted that the church is vicariously liable for the actions of its priests.
In 2019, Australian states legislated that the so-called Ellis defence could no longer be used. It had previously prevented abuse survivors from suing unincorporated organisations such as churches.
In the Maitland-Newcastle case, the court accepted that the abuser had access to children through his work as the parish priest, teaching religion at the local high school; and that in his role as a priest he invited the boy to his home, where the abuse occurred.
Higher damages possible if institution found vicariously liable
The damages awarded to the victims of historical sexual abuse by the courts and in settlements before they reach court, demonstrate that it is worth getting legal advice from a lawyer specialising in the field.
The National Redress Scheme caps payments at $150,000, but the average payout is $90,000 and requires recipients to waive their legal right to sue the organisation involved. (Please see The National Redress Scheme is for people who have experienced institutional child sexual abuse.)
While civil claims are contested, the damages awarded in most cases are significantly higher than the payments from the National Redress Scheme. (Please see An abuse victim got $50,000 through the redress scheme. He fought on, and settled for $500,000, The Age, 6 June 2024.)
If an institution is found to be vicariously liable, then awards can be even larger, as there is no cap. If the institution is found to be negligent, then there is a cap on general damages.
The damages awarded will never truly compensate a survivor of childhood abuse for the lifelong harm caused by the abuse, but for many survivors it can provide a sense of closure that their truth has finally been acknowledged, and that they are, at last, believed.
