N.L. abuse victims to receive 2nd payout after court approves $14.4M in compensation

CBC News

· Posted: Jun 25, 2025 3:08 PM EDT | Last Updated: June 25

Hundreds of maltreatment victims linked to a long-running insolvency lawsuit involving a Catholic archdiocese successful Newfoundland and Labrador volition soon beryllium receiving much currency aft a tribunal approved the disbursement of much than $14 cardinal raised done the merchantability of churches and different assets.

Cheques are expected to beryllium distributed sometime successful July to astir 360 claimants who endured maltreatment astatine the hands of Christian Brothers astatine the notorious Mount Cashel orphanage successful St. John's, and members of the clergy and different spiritual orders.

According to tribunal documents, claimants volition person anyplace from $8,000 to $126,000 successful this latest payout, minus legal fees of up to 40 per cent.

Late last year, the tribunal approved an archetypal disbursement of much than $22 million.

When this latest payout is complete, victims volition person received astir 30 per cent of their full award, which averages astir $400,000. Claimants who received compensation from erstwhile settlements person had those amounts deducted.

The Roman Catholic Episcopal Corporation of St. John's, the concern limb of the St. John's archdiocese, has been recovered vicariously liable for the abuse.

The corp has been nether tribunal extortion from its creditors since precocious 2021 portion it liquidates assets all implicit the Avalon and Burin peninsulas successful a bid to wage claims totalling much than $121 million.

According to the latest study from the steadfast overseeing the insolvency, 116 properties were sold arsenic of April 30, with proceeds of $31.4 million. The corp has besides received millions from the provincial authorities for the merchantability of schoolhouse properties, and the proceeds of a Chase the Ace fundraiser successful the Goulds, bringing the full excavation of backing disposable for creditors and victims to astir $50 million.

That's little than fractional of the full colony amount, but lawyers for the victims are progressive successful "confidential discussions concerning further imaginable recoveries," according to tribunal documents.

• N.L. tribunal approves 1st outgo of $22M for maltreatment survivors

Meanwhile, the enactment of proceedings against the episcopal corp has been extended to Sept. 30, allowing much clip for the merchantability of properties.

With this latest payout to claimants, astir $4 cardinal is being held successful reserve by the episcopal corp to screen ongoing costs related to the insolvency.

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