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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