Legal misstep lets Catholic Church off hook for residential schools compensation – The Globe and Mail

Legally off the hook but ethically? Morally?

A miscommunication by a federal lawyer allowed the Catholic Church to renege on its obligation to try to raise $25-million to pay for healing programs for the survivors of Indian residential schools.

Of that amount, the Church raised only $3.7-million, and a financial statement suggests less than $2.2-million of that was actually donated to help former students cope with the trauma inflicted by the residential schools.

The legal misstep occurred when Ottawa was pressing the Church to pay the entirety of a related cash settlement stemming from the Indian Residential Schools Settlement Agreement, the largest class-action deal in Canadian history.

The failing fundraising effort by the Church, which represented almost a third of its obligation under the settlement, was playing out as the Truth and Reconciliation Commission was travelling the country hearing gut-wrenching stories about what occurred behind the walls of the institutions that operated in Canada for more than 100 years.

The landmark settlement agreement required 50 Catholic groups that ran the schools, known in court documents as the Catholic entities, to pay a combined $79-million for their role in the abuse.

Of that, $29-million was to be paid in cash, most of which was to flow to a now-closed Aboriginal Healing Foundation. Another $25-million was to be donated in unspecified “in kind” services. And an additional $25-million was to be raised for healing programs through the “best efforts” that the entities could make at fundraising.

In an attempt to make the Catholic Church pay the full amount of the $29-million cash settlement, the government inadvertently released it from any obligation it might have had to continue with a dismal fundraising campaign.

“When you have a deal, it needs to be implemented,” said Bill Erasmus, the National Chief of the Dene Nation who handles the residential schools file for the Assembly of First Nations. “So the Church should be paying up. The church agreed there were harms. That’s why people were to be compensated.”

But, as of last summer, the Catholic entities were legally off the hook.

In a March 19 letter to Ron Kidd, a concerned citizen from British Columbia who has been following this case, Andrew Saranchuk, an assistant deputy minister within the Indigenous Affairs department, explained that a court settlement reached on July 16, 2015 “released the Catholic entities from all three of their financial obligations under the settlement agreement, including the ‘best efforts’ fundraising campaign, in exchange for a repayment of $1.2-million in administrative fees.”

This result, Mr. Saranchuk went on to explain, “was due to miscommunications between counsel regarding the nature and extent of the settlement being discussed.”

Source: Legal misstep lets Catholic Church off hook for residential schools compensation – The Globe and Mail