The group were awarded around 200,000 in compensation in 2001 forthe abuse they suffered in North Wales children's homes owned by BrynAlyn Community (Holdings) Ltd in the 1970s and 1980s.
The victims did not get the money because Bryn Alyn went into voluntaryliquidation so they tried to claim compensation from the firm's insurer,Royal & Sun Alliance plc.
But the Court of Appeal ruled on 3 November that they could not getcompensation under the insurance policy.
The judges said that the policy did not cover deliberate acts of abuseby people who could be regarded as "the company" for insurance purposes- in this case the managing director, John Allen, and several seniormanagers and directors at the homes. However, the policy would coverabuse by less senior employees.
One of the group's barristers, Philip Turton, explained that those whohad been abused only by Allen would get no compensation, a settlementwould have to be determined for those abused by both Allen and otherpeople, while those who had been abused by employees who were notmanagers or directors should get most of their money.
A date has not yet been set for determining the compensation.
He added that there are few other avenues through which the group couldget compensation as the deadline to bring a case through the CriminalInjuries Compensation Authority has passed.
The victims could try to sue individual abusers, but these individualswould be unlikely to have the means to pay the damages.
Peter Garsden, vice president of the Association of Child Abuse Lawyers'said the ruling was "scandalous". He said: "As far as other children'shome cases are concerned it means cases against private organisationsthat go into liquidation are going to be more difficult to pursue wherethe abuser is the managing director or person in charge.
"The irony is that for the abuse to go undiscovered there is oftencorruption from top to bottom." His firm previously handled a similarcase and the victims did not get compensation. He added: "It is hardlyjust that the victim of an accident at work should receive compensationwhile the victim of abuse does not."
Allen was convicted of a series of indecent assaults in 1995 and jailedfor six years.
