170 former pupils at St William's school in Middlesbrough claim that they suffered appalling physical and sexual abuse within the home.
The diocese claimed the Roman Catholic De La Salle Order of Brothers, which it hired to run the school, should share the liability for the cases of abuse.
In a landmark ruling, a judge at the Supreme Court agreed that the liability did not solely lie with the diocese.
Dr Jim Whiston says that the decision made by the Supreme Court has vindicated the diocese's view.
More top news
Held along the city's coastline at Roker and Seaburn, the 28th Airshow has seen a major programme of air, land and sea displays.
A plane carrying David Moyes and the Sunderland AFC squad was force to make an emergency landing due to an engine failure
Emma Jesson brings you Sunday night's forecast