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Brother Crowe?<br />

A. This is a letter from the lawyers of the insurance<br />

company, and so, for them, the prior knowledge would have<br />

meant that we would lose or compromise our indemnity with<br />

respect to Brother Chute and to ourselves as the ones who<br />

had taken out the insurance.<br />

Q. So the insurance arrangement you had with CCI was<br />

that, in general terms, they would indemnify you in respect<br />

of any claim unless you had prior knowledge of the<br />

propensity of the accused; is that right?<br />

A. Unless the leadership group did, yes.<br />

Q. And so in relation to Brother Chute, it was a real<br />

issue as to whether or not the leadership group did have<br />

that prior knowledge --<br />

A. Yes.<br />

Q. -- so as to mean that the Marist Brothers themselves<br />

would have to pay for any claims, as opposed to the<br />

insurer?<br />

A. That's right.<br />

Q. And that was a live issue in relation to Chute?<br />

A. Yes.<br />

Q. Was it a live issue in relation to Sutton?<br />

A. I believe so at one stage, yes.<br />

Q. If we come down to paragraph 10, there is reference<br />

there to the advice from the solicitors to CCI regarding<br />

their prospects of success, in terms of relying on<br />

Brother Chute, as a lot less than 50/50. Do you see that?<br />

A. Yes.<br />

Q. And then noting that the Marist Brothers had proposed<br />

that the indemnity issue be resolved between the Marist<br />

Brothers and CCI on a 50/50 basis?<br />

A. Yes.<br />

Q. Were you involved in considering and ultimately<br />

putting forward the 50/50 basis settlement with CCI?<br />

A. I accepted the advice of my lawyer on that.<br />

Q. Is it the case that by putting forward that proposal<br />

and accepting that advice, you formed the view that the<br />

Marist Brothers did have prior knowledge - that is, the<br />

.1/07/2014 (ACT36) ACT4014 J J CROWE (Ms Furness)<br />

Transcript produced by Merrill Corporation

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