An English Catholic adoption agency has had its appeal against new regulations which would require them to place children with same-sex couples.

Catholic Care, a charitable group serving three dioceses (Leeds, Middlesbrough, and Hallam), has argued that the rules would require the agency to violate principles of Catholic moral teaching. But the Charity Tribunal dismissed the agency’s argument.

While recognizing that Catholic Care might be forced to end its adoption services, the tribunal said that the loss was not as serious as the “detriment to same-sex couples and the detriment to society generally of permitting the discrimination proposed.”

The tribunal also noted that the loss of Catholic Care services was “not at all certain”—apparently referring to the fact that no other Catholic adoption agency has challenged the rules that were imposed 3 years ago.

Bishop Arthur Roche of Leeds called the ruling “unfortunate,” and said that it could lead to additional suffering for “the most vulnerable children for whom Catholic Care has provided an excellent service for many years.”

The bishop indicated that Catholic Care is now weighing its options, which include another appeal of the latest adverse ruling.

During evidence last month the Bishop Roche told the tribunal that he believed the law should respect the Catholic Church’s views on this issue in the same way that it allows churches not to have to bless civil partnerships.

All the other Catholic agencies have either stopped placing children or broken away from their diocese and complied with the anti-discrimination rules.

But Catholic Care, which used to find homes for roughly ten children a year, has fought the anti-discrimination legislation in a series of court battles over the past two years.

The charity has been trying to obtain an exemption under the Sexual Orientation Regulations to allow it to continue to operate as it had always done, but the attempt was opposed by the Charity Commission.

Last year the legal arguments went to the High Court where Catholic Care won the right to challenge the anti-discrimination rules. But the Charity Tribunal unanimously ruled today that the agency could not opt-out of equality laws.

Since beginning legal proceedings in 2008 Catholic Care has suspended its adoption services. The charity has claimed that children will be left unadopted if it was forced to comply with equality laws and that potential donors would be put off from giving the charity money.

But the tribunal found that local authorities working with Catholic Care have still been able to find suitable parents. The judges also said there was no evidence, except for the bishop’s opinion, that donated income would be hit.

Christian groups attacked the ruling. “[Equality] legislation is effectively squeezing out Christians who wish to serve society by requiring that they act against their conscience in matters of sexual ethics,” said Andrea Minichiello Williams, director of the Christian Legal Centre which has brought a number of religious battles to court.

“At a time when well over 50,000 children in the UK are in need of a home, we cannot afford to exclude those who are willing to provide a crucial service just because they do not agree with a small minority who are pushing a homosexual agenda under the guise of ‘equal rights.’”