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Article Category: 2006 November

School pays $1m to sex abuse victims

Description:

Article originally prepared on : 07 November 2006

School pays $1m to sex abuse victims

DAVID MURRAY. The Sunday Mail. Brisbane, Qld.:Nov 5, 2006. p. 29

BRISBANE Grammar School had to pay out more than $1 million from its own

coffers after allegedly ignoring warnings about a pedophile counsellor.

Documents obtained by The Sunday Mail show insurers refused to pay the entire

compensation bill for victims because of allegations former headmaster Max

Howell was twice warned about counsellor Kevin Lynch.

As a result, the prestigious school had to dip into its own funds, and is now

suing its insurance broker AON Risk Services Australia to recover the money.

Grammar says the broker failed to properly inform the school of its obligation

to report the claims.

AON Risk Services Australia has filed a defence denying liability.

A group of about 70 former students sued Grammar, alleging Lynch sexually

abused them during counselling sessions between 1975 and 1988. Students claimed

Lynch would typically molest boys after they had undressed, under the guise of

"relaxation therapy".

He committed suicide in 1997 after being charged with abusing a student at St

Paul's School at Bald Hills, in northern Brisbane, to which he moved after

Grammar.

Brisbane Grammar School started reaching confidential out-of- court settlements

with victims in 2003.

Documents lodged in the Supreme Court by the school in its case against the

insurance broker say Mr Howell was allegedly warned about Lynch. But Grammar

claims it was unaware the details had to be passed on to its insurer.

"It was alleged in or about 2002 on behalf of the former student plaintiffs

that the then-headmaster of the school had received two complaints (one in

about April 1980 and the other in or about winter 1981) identifying the conduct

of the said teacher/counsellor which gave rise to the claims," the documents

say.

Grammar's insurers would cover only 90 per cent of payouts from 1980 and 70 per

cent of payouts from subsequent years because they were not informed of the

alleged complaints.

The school was left to pay $1.17 million to victims in compensation and legal

fees.

Compounding the financial burden, the school was unable to identify its

insurers between 1974 and 1978, and had to pay out almost $400,000 for claims

made in those years.

The school also accuses its broker of losing records that would have identified

its insurers during the 1970s.

Grammar board of trustees chairman Howard Stack said yesterday that Mr Howell

had denied he had been warned.

He said Grammar had borrowed to fund its payouts, rather than penalise present

students by selling assets or increasing fees.

The school had adopted an "open and transparent approach" and had provided

counselling, support and compensation to Lynch's victims.

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