The central issue in the Supreme Court appeal was whether the diocese could be held vicariously liable for abuses committed by Coffey, even though the priest was not formally employed by the diocese.

This type of liability is generally reserved for employers who are liable for the wrongful or negligent acts of their employees, regardless of whether the organization is at fault.

Victorian courts extended this to the church, finding that Coffey was still a “servant of the diocese” and in that role had the “power and proximity” to abuse children.

But on Wednesday Australia’s highest court ruled that lower courts had overreached.

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The Supreme Court’s decision noted that it had repeatedly refused to extend the limits of vicarious liability to independent contractors.

“Extending the doctrine to accommodate ’employment-like’ relationships would create ambiguity and ambiguity,” the decision summary said.

“Since the priest is not an employee, there can be no finding of vicarious liability on the part of the diocese.”

Maurice Blackburn’s lead attorney, John Rule, said the ruling would have far-reaching effects on the ability of child abuse survivors to hold institutions to account.

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“The church knew its priests had been abusing children for centuries and did nothing to stop it,” Mr. Rule said.

“Unfortunately, this decision means that in some cases the church can once again evade responsibility for the scourge of child abuse within its own ranks.

“This decision puts Australia at odds with other common law jurisdictions such as the United Kingdom and Canada, which have developed the principle of vicarious liability to meet the scourge of child abuse.”

Clare Leaney, chief executive of sexual abuse prevention charity In Good Faith Foundation, said the decision would be a “difficult one to accept” for survivors.

“Today’s Supreme Court decision feels like a giant step backwards,” he said.

“We call on the federal government to legislate and act on behalf of Australian survivors to address this Supreme Court decision.”

Bishop Bird thanked the Supreme Court for its “careful consideration of these complex areas of law” and said the diocese was reviewing the decision and its implications.

AAP

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