Survivors of institutional child abuse - including those who were abused in the care of religious organisations - will be able to overturn inadequate settlement payments under new laws that have passed in the NSW Parliament.
The Civil Liability Amendment (Child Abuse) Act 2021 gives NSW courts the power to set aside unfair historical settlement agreements for sexual and serious physical abuse. Historically, these settlements were made with survivors who were often suffering from trauma and with no legal advice.
The removal of these barriers, is hoped to even out a significant power imbalance between survivors and institutions. It is in response to recommendations from the Royal Commission into Institutionalised Responses to Child Sexual Abuse, including eliminating limitation periods for claims and abolishing the legal technicalities that shielded some institutions from lawsuits.
NSW head of abuse law at Maurice Blackburn, Danielle De Paoli says many survivors felt they had no choice but to accept paltry settlements for the mistreatment they suffered, and to sign deeds of release waiving their rights to a future civil claim.
"These survivors carry lifelong trauma, with many suffering from complex physical and mental health issues because of the abuse. When faced with pressure from an institution to settle a claim, they felt like they had no other option," Ms De Paoli said.
In some instances, survivors signed up to payments of as little as $5,000 for the abuse that occurred, along with deeds that prevented them from speaking out, or going to court for a higher payout.
NSW Attorney General Mark Speakman says the new laws are about righting the wrongs of the past.
"To ensure survivors can access the civil justice they deserve and be properly compensated for the appalling mistreatment they suffered as children."
