Geoff Budden, the lawyer representing the victims, says the archdiocese will now have to pay out a total of about $2 million to the four lead plaintiffs in the case.

The archdiocese of St. John's said that the decision was not made lightly, but the Appeal Court ruling set a precedent with "profound implications" for its future operations.

The Newfoundland and Labrador Court of Appeal has cleared the way for a class-action lawsuit to go ahead, rejecting arguments for dismissal from the Atlantic Lottery Corp., which operates in all four Atlantic provinces.