Further delays in paying settlements to people abused by Malachy Finegan and others will further harm victims, according to a solicitor for many of those who have taken High Court action against a Catholic diocese.
Dromore Diocese failed to meet a deadline to pay an agreed total settlement of just over £1m to victims of Finegan, the former principal of St Colman’s College in Newry and a prolific abuser of boys.
On Monday, the High Court suspended payment of compensation and any further pending cases after an application by the trustee of the diocese arguing clarification was needed over whether parish assets can be sold to cover the liabilities.
Finegan, who died in 2002, groomed and sexually abused boys while he taught and worked at St Colman’s College in Newry, Co Down and later when moved to parishes in the diocese.
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.
Claire McKeegan, solicitor for the five men awarded damages in September last year, said it is “deeply regrettable that further delay is being inflicted on these clients”.
“Cases will now take longer still to get to trial and ultimately for them to obtain justice for the abuse and torment that was perpetrated on them,” said Ms McKeegan of Phoenix Law.
“It is a matter of deep concern that they are being further harmed by the diocese now in its refusal to pay the claimants the compensation that they committed to pay in September 2025.”
In total, at the end of 2024 the Dromore Diocesan Trust had total assets, cash and investments of approximately £37.5m, the Irish News previously reported.
However, most of the assets are under parish control, the diocese argues.
According to the diocese’s accounts, £2.4m was paid out in compensation and legal fees in 2024 and the ‘unrestricted’ central office, or curia, funds ended the year £4.9m in the red.
This and other debts led the diocese to report total funds, including assets, of just over £26m.
Overall, diocese within the north had total assets, investments and cash of approximately £400m, according to their latest accounts.
In his ruling, Mr Justice David Scoffield granted the request for a moratorium on a number of existing claims for damages already before the court.
“The costs are potentially depleting the assets available to meet the previous and existing forecast claims,” the judge said, adding the order covering existing King’s Bench claims and bids to enforce damages will be reviewed in four weeks time.