Consideration of the Trustees of the Roman Catholic Church for the Archdiocese of Sydney v Ellis [2007] NSWCA 117
17Senior counsel for the Archdiocese Trustees submitted that the plaintiffs' case against it disclosed no reasonable cause of action. He relied upon The Trustees of the Roman Catholic Church for the Archdiocese of Sydney v Ellis [2007] NSWCA 117 as being directly on point and for the reasons given in The Trustees v Eillis , these current proceedings are also doomed to failure and should be dismissed.
18In The Trustees v Ellis , Ellis commenced proceedings in the Supreme Court for damages alleging that he was repeatedly sexually assaulted by an assistant priest of the Roman Catholic Church in the Archdiocese of Sydney between 1974 and 1979. Ellis sued the current Archbishop of the Archdiocese of Sydney, who was appointed in 2001. Ellis also sued the Trustees of the Roman Catholic Church for the Archdiocese of Sydney, the same entity that is being sued in these current proceedings before this Court. The defendants were sued in tort and for breach of statutory duties.
19Both in this case and in Ellis it was not alleged that the second defendant was liable as an occupier of the properties on which the abuse is said to have occurred - see The Trustees v Ellis at [18].
20In The Trustees v Ellis, t he plaintiff sought an extension of time under s 58 and s 60G of the Limitation Act 1969. The Supreme Court dismissed proceedings against the current Archbishop of the Archdiocese of Sydney, but extended the limitation period against the Trustees of the Roman Catholic Church for the Archdiocese of Sydney. The Trustees appealed, by leave, against the decision to extend time, and the plaintiff cross appealed, by leave, against the dismissal decision.
21The Court of Appeal upheld the appeal and dismissed the cross appeal. The Court of Appeal found that an unincorporated association, such as the Trustees of the Roman Catholic Church for the Archdiocese of Sydney, could not be sued in its own name at common law, as it did not exist as a juridical entity.
22In The Trustees v Ellis , Mason P (with whom Ipp and McColl JJA agreed) referred to the provisions of Roman Catholic Church Trust Property Act 1936. His Honour stated at [99] - [112]:
"[99] The Trustees submit that the situation is particularly clear in light of terms of the Act throughout the 1970s when the pleaded acts of negligence by people within "the Church" (including Father Duggan) occurred. The Trustees rely on the decision of this Court in the Archbishop of Perth case.
[100] The long title describes the Trust Property Act as:
'An Act to make certain provisions relating to property held upon any trust for or for the use, benefit or purposes of the Roman Catholic Church in New South Wales; to repeal the Roman Catholic Diocese of Lismore Church Lands Act , 1908, and the Saint Patrick's College (Manly) Act , 1914; and for purposes connected herewith.'
[101] The Preamble to the Trust Property Act at the relevant time provided:
'WHEREAS lands held on trust for or for the use or benefit or for purposes of the Roman Catholic Church in New South Wales are vested in many different bodies of trustees, and owing to deaths and other causes, the necessity for the appointment of new trustees frequently arises: AND WHEREAS it is expedient that bodies corporate be created for the purpose of holding, managing and dealing with lands so held, that provision be made of the vesting in bodies corporate to be created by this Act of lands so held, that conveyancing transactions in respect of lands so held be facilitated and rendered less expensive.'
[102] When the Minister of Justice moved the second reading, he informed the Legislative Assembly that the Bill was submitted at the request of the Roman Catholic Church authorities throughout New South Wales. The Minister described the Bill as "a measure designed to provide the same facilities for the Roman Catholic Church to hold its properties conveniently in the various dioceses as are granted to other churches" (Parliamentary Debates, Legislative Assembly, 23 June 1936, pp 4860, 4861). In the Upper House, the Assistant Minister moving the second reading spoke to similar effect. He drew attention to the preamble and described the measure as:
'... designed to overcome difficulties which have arisen from time to time in relation to the title to lands held in trust for the Church. These difficulties have been occasioned by the practice, hitherto existing of vesting church trust property in individual trustees, usually in the parish priest and certain residents of the parish in which the property is situated.
In the course of time these trustees have died, or have left the State, and in many instances the trustees cannot now be located, so that the statutory provisions relating to the appointment of new trustees cannot be utilised.'
(Parliamentary Debates, Legislative Council, 25 June 1936, pp 4991-2).
[103] The Trust Property Act established a body corporate for each Roman Catholic diocese in New South Wales. In the case of Sydney it is called "The Trustees of the Roman Catholic Church for the Archdiocese of Sydney", ie the name of the second defendant.
[104] The Trustees so incorporated are the Archbishop and the "Diocesan Consultors" for the Archdiocese (s 3). The Consultors are the members for the time being of the Cathedral Chapter (s 2).
[105] Section 4(1) of the Trust Property Act conferred upon each body corporate established by the statute perpetual succession, the right to acquire, hold and dispose of property, the capacity to sue and be sued in its corporate name, and of doing and suffering all such acts and things as bodies corporate may by law do or suffer.
[106] The diocesan Bishop and two other members of each body corporate constitute a quorum for the purpose of any meeting (s 6).
[107] The Act then proceeded to vest all Church trust property within each diocese in the body corporate for that diocese (s 8).
[108] Section 9 relevantly provided:
'9 Every body corporate created by this Act shall have power from time to time -
(a) to purchase, take on lease, or acquire by gift, devise, bequest, exchange or otherwise any real or personal property; and
(b) in relation to any Church trust property at any time vested in it -
(i) to sell it, and to exchange it for other land, and to transfer or convey Church trust property so sold or exchanged to the purchaser or person taking in exchange, freed and discharged from all trusts affecting the same in the hands of the body corporate, and
(ii) to demise or let it for such term at such rent and with or without taking premium, fine or foregift and subject to such provisions as to the body corporate shall appear desirable, and
(iii) to accept surrender of leases, upon such terms and subject to such conditions as to the body corporate shall appear desirable, and
(iv) to raise money on the security of it on such terms and conditions as to the body corporate shall appear desirable, and
(v) to declare trusts of it or of any estate or interest in it created by the body corporate for any Order or Community of the Church or for any association of members of the Church or for the use or benefit of or for any purpose of any such Order, Community or association, and either to retain the property in relation to which trusts are so declared, or to vest it, or any estate or interest so created, in other trustees upon the trusts so declared; and
(c) For any purpose mentioned in this section to execute all such instruments as to the body corporate shall appear proper.'
[109] The conduct sued upon occurred while the Act was in this form.
[110] There are many church property trusts operating as statutory corporations in Australia (see Halsbury's Laws of Australia, "Religion", [365]; MacFarlane & Fisher, Churches, Clergy and the Law, (1996), Sydney, pp 52, 135-8).
[111] ... "Church trust property" as defined in s 2 is vested in the relevant corporation. That corporation is armed with wide powers extending to real and personal property, but they are powers referable to the holding, management and disposal of property. General statements, such as the conferral of power to do and suffer all such acts and things as bodies corporate may by law do or suffer (s 4), and (after 1986) the power to act as if a natural person (s 9), are all directed at this role, and this alone. The appointment, management and removal of priests in the Catholic Church are not functions that the law confers upon bodies corporate or natural persons.
[112] I accept these submissions. ..."
23Mason P, in The Trustees v Ellis , continued at [113] - [118]:
"[113] The long title and preamble explained the limited statutory purpose. So too did the second reading speeches referred to above. Neither assist the plaintiff in the present submission. The Court is directed by s33 of the Interpretation Act 1987 to prefer a construction that promotes the purpose or object underlying an enactment.
[114] There is nothing to indicate why "the Church" would have sought statutory authority to address the relationship between the Church hierarchy and priests. It is inconceivable that an Australian Parliament in the twentieth century would have legislated on such matters without invitation. Even the Anglican Church was firmly disestablished in Australia by the mid nineteenth century ( Wylde v Attorney-General for New South Wales (ex rel Ashelford) (1948) 78 CLR 224 at 284-7). Dr Austin's evidence about the role of a diocesan bishop in the Catholic Church contradicts the notion that episcopal authority in non-property matters would have in some way devolved from the bishop to the body corporate given that the bishop did not in law control the body corporate.
[115] One may assume that the Trustees would as a body choose to be obedient to the wishes of the Archbishop from time to time. Equally, it is apparent that they might from time to time exercise their powers over property in a way that impacted upon the performance of ecclesiastical functions. Thus, to take a hypothetical case, the Trustees might have to institute proceedings for possession against a former priest whose licence to occupy a Church property had been withdrawn for some reason.
[116] The Trustees have power to employ servants and agents for example, to attend to property repairs and conveyancing transactions. The normal legal incidents would attend such a relationship. These may expose the Trustees to liability in contract or tort at the suit of third parties in a proper case.
[117] The evidence shows clearly that the Trustees played no role in the appointment or oversight of priests in the Archdiocese in the 1970s. In one sense this makes it unnecessary to consider whether the Trustees had power to do so under the Act as it then stood. However, in fact they did not, for reasons that follow.
[118] In their various functions, the Trustees are themselves agents of the wider Church. But nothing in the Act makes them the universal embodiment of the Church within the Archdiocese. The commonplace stipulation that the body corporate is capable of being sued in its corporate is not a provision that renders the Trustee some universal nominal defendant responsive in law to any and every claim for legal redress that a person might wish to bring against a Catholic in the Archdiocese."
24Mason P, in The Trustees v Ellis , concluded that the proceedings in their present form were doomed to fail and ought to be dismissed as against the first and second defendants both as regard the claim in tort and the claim for breach of fiduciary duty.
25I accept that the Roman Catholic Church Property Act 1936, as set out in the Trustees v Ellis , applies to these current proceedings.