A landmark sexual abuse compensation payout has been slashed by more than $1 million after a Catholic diocese successfully appealed, in part because the victim had lived “a relatively successful life.”

Victim TJ, whose real name cannot be used for legal reasons, was awarded $3.3 million in compensation by the Victorian Supreme Court last November.

The compensation was for abuse he suffered in the 1960s and 1970s at the hands of pedophile priest Vincent Kiss in the Catholic diocese of Wagga Wagga in southern New South Wales.

It was the largest payout of its kind to an abuse survivor at the time, and the first time a civil case against the Catholic Church was tried before a jury.

However, the Catholic Diocese of Wagga Wagga successfully appealed, resulting in the payout being reduced to just over $2 million.

The diocese’s lawyer, Roisin Annelsley KC, argued that the compensation awarded for TJ’s pain was “manifestly excessive”.

A panel of judges reduced the pain and suffering award to $550,000, halved the interest payment and did not award exemplary damages, which is a type of award used to deter others from committing similar crimes.

‘A relatively successful life’

In its written ruling, the panel explained that while the abuse TJ suffered was severe, he had generally had a good quality of life, which is why his pain and suffering award was reduced by half.

“With the help of psychological treatment, plaintiff subsequently managed to experience a relatively successful life, although not without its challenges,” the panel wrote.

Judge David Beach said not enough arguments had been made to uphold exemplary damages.

“I thought the trial was about pain, suffering and financial loss,” he said.

“Speaking for myself, all of the work on this appeal focused on financial losses.”

TJ was originally awarded $1.1 million for his pain and suffering, $965,000 in economic costs, $1.3 million in exemplary damages, and $462,000 in interest payments.

TJ met Kiss when he was 14, at St Michael’s Cathedral in Wagga Wagga, where Kiss was a priest.

TJ previously told ABC that he had buried the abuse for decades until, as an adult with a career in teaching, he saw a story about a pedophile teacher at a nearby school, causing his trauma to resurface.