The priests, retired dean of Newcastle Graeme Lawrence and Reverend Graeme Sturt, were accused of an incident involving a teenage boy, referred to as "M", in a motel room during an Anglican seminar at Narrandera in 1984.

The Newcastle Diocese professional standards board heard the allegations and made findings last December, recommending the priests be deposed of holy orders.

Police investigated the allegations but have not laid charges.

The priests have denied the allegations, and are seeking damages and orders to prevent Bishop Brian Farran and the diocese from considering the matter.

Justice John Sackar made copies of court documents available to the media yesterday.

The priests' barrister, Roger Marshall, had asked that the details of the "sensitive" allegations be withheld.

But Justice Sackar said the details had already been aired in some sections of the media and the board's public findings, and he was inclined to make the documents available.

The documents state that M had written to the professional standards director of the Anglican Diocese of Melbourne in about October 2009.

The Newcastle diocese professional standards board found last year that allegations against Mr Sturt were proven, including that he had observed Mr Lawrence kiss M and perform a sex act on M, and that had he intervened "it is likely that there would not have been a continuation of sexual abuse of [M] as an adult by [Mr] Lawrence", the documents said.

The board found Mr Lawrence had committed the acts in 1984, and continued to sexually abuse M as an adult.

The priests did not take part in the board proceedings, arguing they were conducted in "circumstances of oppression and unfairness" and that participants might be left open to potential defamation action.

The Supreme Court hearing continues.