N.L. government agrees to pay $45.8M to help compensate victims of church-linked abuse

The provincial regime has in agreement(p) to pen a check out for $45.8 zillion to help compensate those who were abused at Catholic-run institutions in Newfoundland and Labrador, with a judge expected to approve the tentative settlement on Friday in St. John's.

It's the latest reckoning in a dark chapter in the province's history.

The tentative settlement was finalized earlier this week between the government and the lawyers representing hundreds of victims who were abused by Christian Brothers, clergy and other church leaders at institutions like the notorious Mount Cashel orphanage and Catholic-run, government-funded schools in eastern Newfoundland.

"It's very significant, and it's going to put money into the hands of survivors that we've been fighting for 30 years," said lawyer Bob Buckingham, who represents 91 abuse survivors.

The courts ruled that the Roman Catholic Episcopal Corporation of St. John's was vicariously liable for the abuse.

The corporation has been in bankruptcy protection since late 2021, and has been liquidating its assets, including churches and other properties, in a historic shakeup of a once-powerful institution.

Roughly $50 million has so far been raised, with $37 million distributed to the victims. That's well short of the $121 million needed to satisfy the proven abuse claims for the more than 350 victims.

It's now clear that the episcopal corporation will not be able to raise enough money to meet its obligations.

Lawyers for the victims have long claimed that the provincial government also bears some liability. That's because many of the victims were either placed in an institution like Mount Cashel, or attended Catholic-runs schools funded by the government.

Both sides have been in talks for several years.

“I think the government is being proactive because the alternative we made clear — we're not going away," said lawyer Geoff Budden, whose firm represents more than 200 victims.

"They chose a better way, in my opinion, which was to proactively negotiate with claimants, counsel with us as representative council to try to address what I think at law has some pretty clear liability here.”

Claimants who received compensation in a 1996 government payout, and a subset of victims who were abused by priests, will not receive money from this latest government settlement.

"Some of the men who aren't getting compensated, that has to be explained to them, but they've all understood why it is that that is so," said Budden.

"Those who are getting compensated are relieved that this is on the horizon, assuming, of course, that the court approves it.”

The justice minister is not commenting because the settlement is not yet approved by the court, but Helen Conway Ottenheimer said in a statement that this settlement is meant to provide additional compensation to the victims, and serve as a further measure of closure.

Conway Ottenheimer's statement does not include any admission of government liability.

Even if the tentative settlement is approved, there'll still be a shortfall of roughly $40 million. And the episcopal corporation recently lost a court battle over an insurance policy that could have injected millions into the pool of money.

Buckingham and Budden say there are pursuing other avenues for funding, including other religious institutions, but are realistic about whether the victims will get all the money they're owed.

“I think we will increase it over where we are now and I'm certainly going to keep at it until we either get there or all reasonable avenues have been chased down," said Budden.

“Money does not repair the damage that was done to these men and women," added Buckingham.

Barring any last minute complications, the tentative settlement with the government should be approved by Judge Garrett Handrigan of the Supreme Court of Newfoundland and Labrador during a hearing scheduled for Friday morning.

Budden said the money should start to flow to the victims by the end of the summer.

Reporter

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