Cornwall v Seventh-day Adventist Schools (Victoria) Ltd [2026] VSC 238 (Link to JADE).
The applicant alleged abuse in 197401975 when a school student. She brought a claim for compensation which was settled in 2016.
The applicant then sought to set aside the settlement deed pursuant to ss 27QD and 27QE of the Limitation of Actions Act 1958 (Vic) (‘LOA Act’). That application was ultimately successful.
Relevantly, when the plaintiff released her claims against the defendant by the deed entered on 25 August 2016:(a) there was no longer any limitation period applying to her claim;
(b) the Ellis defence operated and was available to the respondent to the claim (an unincorporated association); and
(c) the High Court had not handed down its decision in GLJ v Trustees of Roman Catholic Church for the Diocese of Lismore (‘GLJ’).
The Court concluded at [57]:
At the time she entered into the deed of settlement with the defendant in August 2016, the plaintiff faced (and was advised that she faced) significant legal barriers to her claim. In particular, the availability of the Ellis defence to this defendant was a material factor that motivated her pursuit of an ex gratia compensation payment through a restorative justice process and, ultimately, was a material factor in her decision to accept the settlement. Other barriers and risks influenced her decision, but she believed that the Church was ‘blocking’ her claim in court, and that belief reflected her understanding of the effect of the Ellis defence, based upon her legal advice from Mr Holdway. The inadequacy of the settlement amount, and her unequal bargaining position, also favour setting aside the deed. Taking all of the circumstances into account, including the interests of the defendant and the prejudice it asserts, it is just and reasonable to set aside the deed in full.
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