Based on coverage from SaltWire and CBC.
Survivors of abuse connected to the Christian Brothers, clergy and other church leaders at Mount Cashel and other Catholic-run institutions in Newfoundland and Labrador are asking a judge to approve a $45.8-million settlement with the provincial government.
The ongoing legal battles surrounding compensation for abuse survivors in Canada have seen various outcomes, including a recent case where a BC court dismissed a $168 million lawsuit over alleged misuse of loan funds, underscoring the complexities of such settlements in the country. For further context, see our coverage on the BC court ruling.
Lawyer Geoff Budden, who represents more than 200 claimants, filed for court approval Monday. A hearing is scheduled for Friday morning in St. John’s, where Justice Garrett Handrigan is expected to review the deal.
Newfoundland and Labrador $45.8M settlement details
The tentative agreement would see the province pay $45.8 million toward compensation for survivors who were abused in places such as the former Mount Cashel orphanage and Catholic-run, government-funded schools in eastern Newfoundland.
Court documents say the province began negotiating with survivors’ lawyers in 2024. If the settlement is approved, claimants can expect payments within about three months, according to the filing. Budden told CBC he expects money to start flowing by the end of the summer.
The settlement also includes a $500,000 counselling fund.
Who gets paid and who does not
Individual compensation amounts under the provincial settlement range from just under $6,000 to roughly $750,000, based on factors including the type and timing of abuse and laws tied to the province’s responsibility for children in those institutions.
Not everyone qualifies. Court documents say a small number of claimants are denied compensation, including people who already released the province through other proceedings. CBC also reports that claimants who received compensation in a 1996 government payout, and a subset of survivors abused by priests, will not receive money from this latest provincial settlement.
Another group flagged in the court materials: 12 claimants from B.C. who were abused by three Christian Brothers later transferred to schools in Vancouver after allegations and admissions of sexual abuse in St. John’s.
Claimants can opt out. But there’s a key condition: if the total value of opt-outs tops $9 million, the province can terminate the deal.
Mount Cashel claims and court history
Lawyers involved describe the agreement as a major step in a case that has stretched across decades. Bob Buckingham, a St. John’s lawyer representing 91 claimants, told CBC the settlement is significant because it finally puts money “into the hands of survivors” after a long fight.
The broader legal backdrop matters here. The Supreme Court of Canada refused in 2021 to hear an appeal from the Roman Catholic Episcopal Corporation of St. John’s (RCEC) after lower courts held it responsible for the abuse. Buckingham has called that Supreme Court decision the biggest moment in the case, with this provincial settlement close behind.
St. John’s archdiocese insolvency and the $80M gap
The RCEC has been under creditor protection since December 2021, selling off assets to compensate more than 300 survivors. An independent claims process awarded $121.3 million to more than 350 victims, but the money raised so far falls well short.
Reports differ slightly on the totals raised. Court documents say about $37 million has been paid out so far, and that RCEC assets are expected to come in about $80 million short. CBC reports roughly $50 million has been raised, with $37 million distributed, and says the remaining shortfall is roughly $40 million even if the provincial settlement is approved.
The creditor protection extension runs to June 30, and the archdiocese expects to ask the court to end the insolvency proceedings by then.
Insurance ruling and what happens next
Another recent blow: Newfoundland and Labrador’s Court of Appeal ruled last week that Guardian Insurance can void the archdiocese’s policy because the archdiocese failed to disclose sexual abuse claims when it bought and renewed coverage in the 1980s. That decision shut down a potential source of additional funds.
Budden says he’s still trying to close the remaining gap and believes other third parties may share liability. For the province, Justice Minister Helen Conway Ottenheimer said in a statement the settlement is meant to provide additional compensation and a measure of closure, without admitting government liability.
Friday’s court hearing is the next immediate milestone. If the judge signs off, survivors who qualify could see payments land within months, after years of legal wrangling and, for many families, after waiting too long.
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