Proposed laws to stop religious orders moving assets beyond abuse victims' reach
Religious orders will be prevented from moving assets beyond the reach of abuse victims under proposed legal changes to be outlined today.
Religious orders will be prevented from moving assets beyond the reach of the victims of sexual or other forms of abuse, under proposed legal changes to be outlined today.
The proposals, from the Law Reform Commission, outline ways in which trust funds set up to protect assets can be legally accessed by individuals who are suing unincorporated bodies such as religious orders.
They follow on from a suggestion by a Supreme Court judge that the law should be examined following a case in which the court ruled against a man suing the Marist Order of Brothers over sexual abuse he had suffered because the order was unincorporated and therefore not legally liable.
The case in 2017, Hickey v McGowan, concerned a plaintiff who alleged he had been sexually abused between 1968 and 1972 by a member of the Marist Order of brothers, which was unincorporated. The Supreme Court held that while the plaintiff was entitled to obtain judgment against individuals who were members of the order at the time, he could not obtain a judgment against the order itself.
Judge Donal O’Donnell (since appointed chief justice), ruled in the case that any judgments awarded against individuals of an order were not liable on the order unless the order was “willing to make funds available”.
Any change in the law would also apply to other unincorporated bodies such as sports clubs or societies. For instance, currently if a member of club or society believes they have suffered an injury due to negligence on the club or society’s part, they cannot sue as they would effectively be suing themselves.
“While there are advantages for many clubs and societies in choosing to operate as unincorporated associations, there are also significant risks,” the LRC release notes. “The members are exposed to personal liability for the wrongdoing of others, even in cases where they played no active part.”
The LRC is proposing three different models that might be considered by the Oireachtas in changing the law:
- Legislate to create a non-profit registered association;
- Confer separate legal personality on unincorporated associations that fulfil specified criteria;
- Specify how unincorporated associations are to be held liable in contract and tort law and for offences.
In 2008, the Edmund Rice Schools Trust was established as a holding body for more than 100 Christian Brothers schools in the country, effectively protecting the assets of the brothers from any compensation claims arising from sexual abuse offences or allegations.
The proposals, which were published by the LRC, are bound to be controversial if they are seen to impinge on the liabilities of trusts which are set up for family wealth or tax purposes.
