The Catholic Child Welfare Society and Others v. Various Claimants and The institute of the Brothers of Christian Schools and others.
United Kingdom Supreme Court, [2012] UKSC 56
Child abuse and its ramifications have been taking up a significant amount of British media attention over the past months. A case before the Supreme Court, the highest Court of Appeal, did not, however, receive many column inches. It does have serious ramifications for insurers and for clerical institutions.
A priest and member of a religious order was the principal of an approved school, a young offenders’ institution. He vowed poverty, chastity, and obedience to the order. The institution was owned by a charitable trust that employed him and other members of his order. Over a period of some years he abused a number of the vulnerable children in his care. He went to prison for a number of years.
In the seminal case of A v Hoare in 2008, the House of Lords (the then highest appellate court) held that the statute of limitations was only discretionary and that in cases of sexual abuse, the discretion ought to be exercised in favour of the victim. This finding has led to a significant number of cases being brought against those who employed or were otherwise responsible for abusers both alive and dead.
In JGE v The Trustees of the Portsmouth Roman Catholic Diocese [2012] EWCA Civ 938, the Court of Appeal held that the diocese was vicariously liable for the actions of a diocesan priest working in one of its parishes even though the priest was not technically an employee of the diocese or bishop.
In the present case, the Supreme Court held that a priest in an order was operating in a manner similar to an employee and so the order was vicariously liable as was the institution. The insurers of the institution could bring contribution proceedings against the order.
The case increases the pot available from which to compensate victims. Depending upon whether religious orders have liability insurance and the extent of any such insurance, insurers may be able to recoup some of their liabilities or will find those liabilities increased. Religious orders without or with inadequate liability insurance could face ruin.