Historic clerical abuse compensation cases against a Catholic church diocese are to be temporarily suspended amid uncertainty over its financial capability to fund pay-outs, a High Court judge ordered today.
Mr Justice Scoffield granted the request for a moratorium on a number of existing claims for damages already before the court.
The application was made by the Diocese of Dromore Trustee while it seeks legal clarification on whether parish property can be sold to help meet any liabilities to victims.
It is understood that dozens of cases could now be put on hold.
The Diocese has been sued in a series of cases, many of them centred on the activities of paedophile priest Malachy Finegan.
Finegan, who died in 2002, allegedly groomed and sexually abused boys while he taught and worked at St Colman’s College in Newry, Co Down.
Millions of pounds in damages have already been paid out in lawsuits mounted over failures to prevent him from targeting pupils.
In 2021 church authorities set up a redress scheme for survivors of sexual abuse perpetrated by clergy within the Diocese, with payments capped at £80,000.
Other steps have also been taken to liquidate or realise assets to help compensate claimants.
Last year the sale of the Bishop’s House in Newry was completed, while the sale of associated land remains pending.
An application was lodged at the High Court’s Chancery Division for an adjudication on what other assets are available to trustees for any settlements in King’s Bench compensation claims.
Based on uncertainty over the Diocese’s entitlement to sell off parish property, Mr Justice Scoffield has been asked to make a judicial assessment.
The court heard there is currently a cash-flow risk that it may not be able to meet any liabilities in the historic abuse cases.
Counsel for the trustees stressed that the request for a moratorium was just to obtain some "breathing space” until the position is resolved.
Unrecoverable legal costs could be incurred by the plaintiffs and defendants in those cases if they were not temporarily put on hold, it was submitted.
With no objection raised by the Attorney General, Mr Justice Scoffield granted the order he likened to stay imposed in corporate insolvency cases.
“The costs are potentially depleting the assets available to meet the previous and existing forecast claims,” the judge pointed out.
“I have been persuaded that it is a sensible and appropriate option to make an order.”
He confirmed that the order, which covers existing King’s Bench claims and bids to enforce damages, will be reviewed in four weeks time.