A Roman Catholic diocese could be forced to pay up to £8 million in compensation after a judge ruled that it was liable for running a home at the centre of a child abuse scandal.

The case could last at least one more year, however, because the diocese was given leave to appeal.

The High Court ruling opened the door for 142 people alleging sexual and physical abuse to seek damages from Middlesbrough diocese in what could turn out to be the biggest historical abuse claim against the Catholic Church in the country so far.

After untangling the complex management history of St William’s Community Home in Market Weighton, East Riding, Judge Hawkesworth, QC, decided that responsibility fell on the diocese rather than the De La Salle Brothers, an order of lay teachers.

The case concerns alleged systematic abuse of children at the care home from 1960 until 1992 when it closed. St William’s took emotionally and behaviourally disturbed boys, aged 10 to 16, referred by councils largely from Yorkshire and the North East.

Jordans solicitors, based in Wakefield, West Yorkshire, took on the case six years ago after an investigation by Humberside Police into the home’s former headmaster, Brother James Carragher. He was jailed for 14 years after being convicted of abusing boys at the home. The case also includes claims against other staff. About 2,000 children and 500 staff were at the home during the 32 years in question.

David Greenwood, the claimants’ solicitor, said: “It has been a long battle. They have used every argument possible to resist the case and I am hopeful that the Middlesbrough Catholic diocese will consider settling the cases now. There are a lot of homes such as St William’s which were staffed by members of religious organisations. These organisations should not be allowed to escape responsibility for their staff.”

Jim Whiston, for the diocese, said: “We are disappointed with the verdict. Our legal advisers are looking at an appeal.”

At the High Court in Leeds the judge granted leave to appeal. The diocese is expected to contend that De La Salle should be liable. The order, however, says the diocese had management responsibility.

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