A historical child sexual abuse claim involving a Seventh-day Adventist school in Warburton has been revived following a recent Supreme Court decision allowing a former student to pursue additional compensation.

The woman had previously accepted a $125,000 settlement from the church in 2016 after alleging she was repeatedly sexually abused by teacher Jean Mack during the 1970s.

However, a ruling delivered on April 29 set aside that agreement, enabling the survivor to continue her claim through the courts.

Court documents allege the abuse occurred regularly while the woman was in Prep and Grade 1, sometimes as frequently as every few weeks.

The woman also claimed that after disclosing the alleged abuse to the school principal, she was threatened with expulsion unless she admitted to abusing other students herself.

Jean Mack denied the allegations throughout her life and died in 2024.

In her judgment, Associate Justice Caroline Goulden found the woman believed the 2016 agreement represented her only realistic pathway to justice at the time.

The Court noted that significant legal barriers existed when the settlement was negotiated, including the so-called “Ellis defence”, which historically allowed some religious organisations structured as unincorporated entities to avoid civil liability.

Justice Goulden said the survivor understood signing the deed would prevent her from pursuing future compensation claims against the church.

Evidence before the Court also outlined the woman’s severe mental health struggles prior to the settlement, including hospitalisations related to suicidal ideation and previous suicide attempts.

At the time the agreement was reached, the woman was reportedly experiencing serious physical, financial and psychological hardship. She had been unable to work for years and was receiving a disability pension due to ongoing health issues.

The Court heard that during settlement discussions with church representatives and her solicitor, the woman became emotional while recounting her experiences.

Although the church argued it had no intention of relying on the Ellis defence, Justice Goulden found references in settlement file notes suggested the issue was clearly contemplated during negotiations.

The judgment stated there appeared to be no reason to describe the school operator as an “unincorporated entity” unless it was intended to highlight potential legal obstacles to suing the institution.

The Court also considered file notes indicating the settlement was never intended to fully compensate the survivor in a manner comparable to common law damages.

Ultimately, Justice Goulden ruled the deed should be set aside, citing both the inadequacy of the compensation and the survivor’s disadvantaged bargaining position at the time of settlement.

The judgment concluded that, when considering all circumstances, it was just and reasonable to rescind the agreement entirely.

According to Arnold Thomas & Becker associate Gabrielle Verhagen, the matter may now proceed to mediation with Seventh-day Adventist Schools (Victoria) Ltd and its legal representatives.

“If the matter does not resolve, it would proceed to trial,” Ms Verhagen said.

The Seventh-day Adventist Church Victoria was contacted for comment.