Appeals Court Affirms Decision On Ownership of Buddhist Pagoda

As reported by the Salt Lake Tribune, in Dao Trang Phap Hoa v. Vietnamese Unified Buddhist Association of Utah, (UT App., May 21, 2015), a Utah state appeals court upheld a trial court's decision that a Salt Lake City Buddhist temple-- the Pho Quang Pagoda-- is owned by a local affiliate of the California-based Vietnamese-American Unified Buddhist Congress.  Some members of the temple claimed that the Congress held the Pagoda in trust for the local Vietnamese Buddhist Alliance Society of Utah.  The appeals court held that even if there were questions of fact on that issue, the plaintiff in this case, the  Vietnamese Unified Buddhist Association of Utah, lacked standing to assert the claim on behalf of the Society because the two groups are separate corporations, even though they have overlapping membership.

Court Orders Parishioners To End 10+ Year Vigil Protesting Church Closure

A Massachusetts trial court yesterday granted the Boston Catholic Archdiocese an injunction to end the ten and one-half year vigil that parishioners of the now-closed St. Frances X. Cabrini Church in Scituate (MA) have been maintaining inside the church.  On the website of the Friends organization supporting the vigil, parishioners say:

The members of St. Frances believe that we have been unjustly shuttered via the flawed process of reconfiguration introduced by the Archdiocese of Boston and that this misguided decision was based solely on the value of our parish property - 30.3 acres of prime coastal real estate.

In Roman Catholic Archbishop of Boston v. Rogers, (MA Super. Ct., May 14, 2015), the court held that the former parishioners "are unlawfully and intentionally committing a trespass by the continuation of the protest vigil on the premises of the church."  The court rejected defendants' arguments that it lacks jurisdiction over the suit because the claims require the interpretation of ecclesiastical principles. saying:

defendants' argument conflates the issues of whether the parish may be closed (an eccleisastical question) with whether an owner in control of property may determine when individuals may be on property (a civil law question).  Because the latter may be decided by neutral principles of property law, this court may proceed to hear the facts and decide whether defendants' vigil is a trespass and whether an injunction should issue.

The court also rejected parishioners' defense of laches, and their $37,000 counterclaim for amount spent on upkeep and maintenance during the vigil. AP reports on the decision.  The Quincy Patriot Ledger reports that defendants plan an appeal and plan to ask the trial court to suspend the injunction pending appeal.  Otherwise it will take effect on May 29.

Suit Filed Over Sale of Lower East Side Synagogue To Developer

The New York Post reported on April 10 that congregants at the Home of the Sages synagogue of the Ger Hasidic sect on New York City's Lower East Side are suing to invalidate the $13 million sale of their building to developer Peter Fine.  $10 million from the sale will be used to build a Ger synagogue in Israel, while the other $3 million will go to the synagogue's president, Rabbi Samuel Ashkenazi. The April 16 Jewish Business News has more on the story:

[S]ince the synagogue is a non-profit a court must sign off its sale. The sale price is well below market value for the area which set off a lot of red flags.... The synagogue allegedly had a member meeting to pass this deal — even though the ‘members’ were people from Queens who had never stepped foot in the synagogue to worship there.”...

Now here’s where things get complicated. Rabbi Ashkenazi has also been accused by ... [the congregants' lawyer] of using funds from the sale to in effect pay himself $45,000 a year to lease space in his Queens home to the congregation. Apparently, Ashkenazi’s wife was the one who signed the new lease with the synagogue.

In another strange twist the judge, Arthur Engoron, who was set to preside over the preliminary court hearing in New York yesterday, recused himself from the case without saying why.

Suit Over Mismanagement of Maryland Church Dismissed

A Maryland federal district court has dismissed a lawsuit growing out of a longstanding dispute over control and operation of the Landover County, Maryland-based Jericho Baptist Church Ministries.  Most of plaintiff's claims were brought as a derivative suit alleging mismanagement and breach of fiduciary duty that caused congregational membership to drop from 15,000 to 30. The suit also alleges that defendants hired themselves at high salaries to operate the church.  In Franklin v. Jackson, (D MD, March 13, 2015), the court held that the derivative claims should be dismissed because plaintiffs failed to make demand on the board to take corrective action before filing the suit in the name of the corporate entity.  The sole non-derivative claim-- an asserted vested right to vote for trustees-- was dismissed on the merits.

Backgrounder On Lawsuit By NJ Methodist Congregation Against United Methodist Church

The Record today carries a long article about a lawsuit filed this summer by Alpine Community Church (in Alpine, New Jersey) against the Greater New Jersey Annual Conference of the United Methodist Church over ownership of church property. Here are some excerpts from the article:

Here in one of America’s priciest ZIP codes, a bitter dispute is bubbling at a beloved local landmark over religion and money, property and race, spilling from its pews and into the courts.

At its heart is ownership of the Alpine Community Church, a sanctuary with a storied history, millions of dollars in assets, and a tiny congregation. Its trustees have voted to cut ties with the United Methodist Church and say they want to preserve it as a church for all who want to worship there..... 

Court papers attest to the turmoil, with trustees alleging church funds were used to fuel the “luxurious lifestyle” of a former pastor appointed by the conference, causing some members to stop attending services and making donations.....

The former pastor at the center of the controversy is the Rev. Hae-Jong Kim, who roughly six years ago, in his retirement, was assigned to serve the Alpine church part time. Kim was the first Korean-American bishop in the UMC but resigned that post nearly a decade ago as part of the resolution of an unrelated complaint filed against him.

The lawsuit accuses Kim of misusing church funds; trustees allege that when evidence of forged checks, missing donations and more was presented to the conference, nothing was done....

Church of Brethren Has No Right To Property of Break-Away Congregation

In Church of the Brethren v. Roann Church of the Brethren, Inc., (IN App., Nov. 17, 2014), an Indiana appeals court held that a break-away Church of the Brethren congregation had not placed its property into an irrevocable trust, express or implied, for the benefit of the Denomination.  Applying the neutral-principles-of-law approach, the court reviewed the Denomination's Organization and Polity Manual, the underlying deeds and the congregational constitution to affirm the trial court's holding that the church property remains with the congregation. [Thanks to Michael E. DiRienzo for the lead.]

Certiorari Denied In NYC Pregnancy Center and Texas Episcopal Church Property Cases

The U.S. Supreme Court today (Order List) denied review in two groups of cases of interest to Religion Clause readers.

The first involved a challenges to the New York City ordinance requiring pregnancy service centers to disclose various items to potential clients. The 2nd Circuit upheld (by a 2-1 vote) the requirement to disclose whether or not there is a licensed medical provider on staff. It unanimously struck down the requirements to disclose whether or not the center provides or refers out for abortion, emergency contraception and prenatal care, and a requirement to disclose that the New York health department encourages women who may be pregnant to consult a licensed medical provider. (See prior related posting.) The cases are Evergreen Association, Inc.  v. New York, NY, Docket No. 13-1462, cert. denied 11/3/2014) and Pregnancy Care Center v. New York, NY, (Docket No. 13-1504, cert. denied 11/3/2014). Reuters reports on the denial of review.

The Supreme Court also denied review in Episcopal Church v. Episcopal Diocese of New York, (Docket No. 13-1520, cert. denied 11/3/2014).  The petition involved related decisions by the Texas Supreme Court in two cases holding that the neutral principles approach must be used in deciding ownership of property of the break-away Fort Worth diocese. (See prior posting.) AP reports on the Supreme Court's action.

Diocese Challenge To Charter School's Leasing of Catholic High School Property Moves Ahead

In Roman Catholic Diocese of Brooklyn, New York v. Christ the King Regional High School, (NY Queens Co. Sup. Ct., Aug. 21, 2014), a New York state trial court denied a Catholic high school's motion to dismiss a declaratory judgment action filed against it by the Brooklyn Diocese challenging its decision to lease a substantial portion of its property to a non-sectarian charter middle school. In 1976 the Diocese conveyed the school property to the educational corporation that operated the Catholic high school on the condition that the property would be reconveyed to the Diocese if it ceased to be used for a Catholic high school. While under New York property law failure to record the condition extinguished it as a possibility of reverter, the court held that the restriction is still enforceable as a matter of contract law.

Settlement Reached In Presbyterian Church Property Dispute

Presbyterian News Service and The Christian Post reported last week that a settlement has been reached in a lawsuit (see prior posting) brought against Presbyterian Church USA by the Dallas, Highland Park Presbyterian Church. Highland Park, a megachurch, has voted to break away from PCUSA and affiliate with the more conservative Evangelical Covenant Order of Presbyterians.  The suit had been filed by Highland Park to determine ownership of church property. Under the settlement, Highland Park will pay $7.8 million (26% of its assets) to PCUSA to obtain a release of claims that the property belongs to PCUSA under it Book of Order trust clause and to obtain ecclesiastical dismissal.  The dollar amount was agreed on in court-facilitated mediation, and was based on the percentage of Highland Park members that have chosen to remain with PCUSA.

$3.5 Million Belongs To Break-Away Episcopal Diocese

In Diocese of Quincy v. The Episcopal Church, (IL App., July 24, 2014), an Illinois state appellate court applied the "neutral principles" approach to hold that over $3.5 million in funds and title to a Diocesan House belong to the break-away Diocese of Quincy and were not held in trust for The Episcopal Church.  The court observed that the Episcopal Church's Dennis Canon applies to parish property, but not to property belonging to a diocese.

Church Split Can Be Adjudicated Using Neutral Principles of Law

In Rector, Wardens and Vestrymen of St. Mary of the Angels' Parish v. Anglican Church in America, (CA App., July 23, 2014), a California appellate court held that a dispute over who controls an Anglican parish, a majority of whose members favor reunification with the Catholic Church, can be resolved by applying neutral principles of law and without deciding ecclesiastical matters. According to the court:

At one point during the dispute, the ACA took disciplinary action against the Rector, Father Christopher P. Kelley, inhibiting him from performing any ecclesiastical duties, and ordering him to vacate the premises owned by St. Mary’s. The ACA appointed a new Rector, who then removed several members of the elected Vestry and appointed new members.

When Father Kelley refused to vacate the premises, the ACA ... filed a lawsuit against him.... Eventually, three more lawsuits were filed.... All of the lawsuits required resolution of one dispositive question: Who controls St. Mary’s?

....We conclude that the determination of who controls St. Mary’s depends upon the validity of an August 2012 vote by members of the Parish to disaffiliate from the ACA, and that the validity of that amendment can be determined by applying neutral principles of law. 

Episcopal Diocese Settles With Break-Away Congregations Without Lawsuit

Episcopal News Service yesterday reported on the final steps in an amicable settlement between the Episcopal Diocese of Olympia, Washington and two break-away congregations that ultimately joined the more conservative Anglican Church In North America. (Background.)  Unusual in this time of litigation, the settlement was reached over ten years without any lawsuits being filed.  Two years after the 2004 split, the parties signed a covenant agreement that called for no legal action to be taken before 2014, and for the break-away congregations to temporarily continue to meet in the meantime in their traditional buildings. Now those properties have been returned fully to the Episcopal Diocese, and the break-away congregations have found worship space elsewhere.

5th Circuit: Defer To State Court Proceedings In Church Property Dispute

African Methodist Episcopal Church v. Lucien, (5th Cir., June 30, 2014), involves appeals in two related cases growing out of a property ownership dispute between the national AME Church and a local congregation, St. James Mission Church. St. James sued in a Louisiana state court seeking to evict several AME national church officers who had taken over the local church building. AME filed a counter suit in federal court seeking a declaration that the break-away members had given up any rights to the property through their dissociation.  AME then removed the eviction action to federal court, claiming diversity of citizenship.  However St. James claimed the removal was improper.  The 5th Circuit agreed, finding the jurisdictional diversity of citizenship lacking. The Court ordered that the eviction proceeding be remanded to state court, and that the federal district court also abstain from deciding the counter-suit until the eviction proceeding is concluded in state court.

Court Decides Dispute Over Proceeds From Sale of Church Property

In Pacific Southwest District of the Church of the Brethren v. Church of the Brethren, Inc., (CA App., June 23, 2014), a California appeals court dealt with a dispute over sharing of the proceeds from the sale of church property.  The court summarized its holding:

Pacific Southwest District of the Church of the Brethren (PSWD) ... appeal from a judgment in favor of respondents Central Korean Evangelical Church (CKEC) and its pastor Jang Kyun Park. The judgment gave CKEC an 86-percent share and gave PSWD a 14-percent share in the proceeds from any sale of CKEC’s real property, which consists of three lots in the Koreatown neighborhood of Los Angeles. Appellants argue CKEC holds the property in trust for the Church of the Brethren. We conclude that PSWD is estopped from asserting a trust over the entire property because CKEC joined the denomination on assurances by church representatives that a trust would not apply to property it owned at the time of affiliation, and at that time it already owned two of the three lots. We also conclude that PSWD may assert a trust over the after-acquired third lot. We affirm the judgment to the extent it ordered partition of the property by sale, but reverse and remand for a redetermination of each party’s share in the proceeds from any sale.

Break-Away Presbyterian Congregation Sues To Retain Property Ownership

The Milwaukee Journal-Sentinel reported yesterday that the Sheboygan County, Wisconsin First Church of Oostburg has filed a state court lawsuit against the Presbyterian Church USA in a bid to retain ownership of congregational property in the wake of its vote last week to disaffiliate from the Presbyterian Church USA and join the more conservative Covenant Order of Evangelical Presbyterians. The Church of Oostburg's vote to disaffiliate came just days ahead of the decision at the Presbyterian General Assembly to allow clergy to officiate at same-sex marriage ceremonies and to redefine marriage as a covenant between "two people".  The Presbyterian Church wants the Oostburg congregation to pay $500,000 in order to keep the property.

Michigan Appeals Court: Ecclesiastical Proceedings Toll Statute of Limitations; Hierarchical Structure Poses Factual Question

In Chabad-Lubavitch of Michigan v. Schuchman, (MI App., May 22, 2014), a Michigan appellate court reversed a trial court's dismissal of a suit brought by Chabad-Lubavitch of Michigan in its property dispute with a local Chabad organization. Plaintiff claimed that property of Bais Chabad Torah Center of West Bloomfield should have been titled in the name of the Michigan parent entity rather than in the name of the local organization. The property claim was apparently first raised in a rabbinic panel proceeding as a counter-claim after the head of the West Bloomfield Chabad center filed complaints against the rabbi who heads the Michigan parent organization. The dispute has already been the subject of  five decisions by Jewish rabbinic panels, all of which ruled that title should be in the name of the parent group. However the West Bloomfield Chabad center refused to comply and the rabbinic court gave the parent body permission to file this civil suit.

The court held that the ecclesiastical abstention doctrine would require it to defer to the decision of the Chabad rabbinic determinations if Chabad-Lubavitch is a hierarchical organization. The court concluded, however, that "there is a genuine issue of material fact regarding whether Chabad-Lubavitch is hierarchical in regard to property matters, and thus, whether the ecclesiastical abstention doctrine applies in this case."

In the course or reaching this conclusion, the court made interesting rulings on defendants' statute of limitations defense. It held that "the applicable statutes of limitation were equitably tolled during the time that the parties were engaged in the mandatory ecclesiastical dispute resolution process."  It ruled that prior precedent refusing to toll statutes of limitation while parties are engaged in voluntary arbitration does not apply because the parties were involved in Chabad-Lubavitch's mandatory ecclesiastical procedure. But that left the question of when tolling ended:

[D]efendants dispute the date that the ecclesiastical dispute resolution process was concluded. Plaintiff maintains that the process was not complete until it received permission to bring a lawsuit in civil court.... Defendants maintain that plaintiff should have sought permission earlier so as to comply with the applicable statutes of limitations..... However, the parties’ dispute regarding when the internal procedure was final constitutes a factual question that is not appropriate for resolution by this Court on appeal. Moreover, resolution of the parties’ disagreement about when the internal dispute resolution process was final would require this Court to interpret religious doctrine or polity. Engaging in such an interpretation would be improper because the First Amendment “requires that civil courts defer to the resolution of issues of religious doctrine or polity by the highest court of a hierarchical church organization.” ... Accordingly, we are required to defer to plaintiff’s claim that the procedure was not final until it received permission to file a civil lawsuit.... Therefore, plaintiff’s complaint was timely filed.

Episcopal Church Wins Lawsuit Over San Joaquin Diocese Property

A California state trial court this week released a Tentative and Proposed Statement of Decision giving a victory to The Episcopal Church (TEC) in its property-ownership dispute with the break-away Diocese of San Joaquin. The decision comes after a trial. (In an earlier decision the court concluded that there was not evidence that would allow adjudication on summary judgment.) In Diocese of San Joaquin v. Schofield, (CA Super. Ct., May 5, 2014), the court held that the purported transfer of property to the Anglican Diocese Holding Corporation, affiliated with the Province of the Southern Cone instead of TEC, was invalid because the transfers were made by Bishop John David Schofield after he was removed as an Episcopal bishop by TEC. It went on to hold that the Diocese could not "leave" the Church because it is a geographical construct of the Church. The Church's governing documents "make clear that a local parish owns local church property in trust for the greater church and may use that property only so long as the local church remains part of the greater church." Anglican Curmudgeon blog comments on the ruling from the perspective of the break-away Diocese.

Pennsylvania Appellate Court: Property of Breakaway Congregation Belongs To PCUSA

In Peters Creek United Presbyterian Church v. Washington Presbytery of Pennsylvania, (PA Commonw. Ct., April 30, 2014), the Pennsylvania Commonwealth Court in a 4-3 decision held that the church building and other property of Peters Creek Church is held in trust for the Presbyterian Church USA, despite the vote of a majority of the congregation's members to break away and instead affiliate with the Evangelical Presbyterian Church. Applying neutral principles of civil law, the majority held that 2001 Peters Creek bylaw amendments bound the congregation to the PCUSA Book of Order (including its trust clause), and attempts in 2007 to revise the bylaws were invalid. The majority said in part:

[E]nforcement of Peters Creek Church’s commitment to the PCUSA is required by neutral principles if that commitment does not violate the laws of the Commonwealth. The non-profit corporation Peters Creek Church unequivocally incorporated into its own governing documents the mandatory provisions of the Book of Order, including the commitment not to disaffiliate without permission from the Washington Presbytery. Enforcement of those documents, in accordance with neutral principles, does not prevent any individual member of Peters Creek Church from exercising his or her religious preference to leave the Presbyterian Church (U.S.A.) and join the Evangelical Presbyterian Church, or any other church, or no church at all.

The dissenters, in an opinion by Judge McCulloch contended that no trust in favor of PCUSA was created and the 2007 vote to disaffiliate was valid.

Montana Supreme Court Rules On Lutheran Church Property Dispute

In New Hope Lutheran Ministry v. Faith Lutheran Church of Great Falls, Inc., (MT Sup. Ct., March  12, 2014), the Montana Supreme Court held that members of a Lutheran congregation-- Faith Lutheran Church-- that voted to break away from the Evangelical Lutheran Church in America over ELCA's policy of ordaining gays and lesbians are not entitled to the church's property. The break-away members voted to affiliate instead with Lutheran Congregations in Mission for Christ. Under Faith Lutheran's constitution, while a 2/3 vote would authorize disaffiliation, a 90% vote was needed before title to the church's property would go to the break-away congregation. Only 71% of members voted to disaffiliate. The court said:

we conclude that a dispute over church documents susceptible to application of neutral principles may ... be resolved by a court using the neutral approach. The challenge raised here by Faith Lutheran to the validity of the 1993 constitution does not require us to delve into doctrinal matters, and only separate, secular language is used. Resolution is possible under application of neutral principles of contract, trust, and corporate law. Thus, no First Amendment concern is raised that would prohibit a court’s exercise of jurisdiction over the dispute.....

Finding that the church's 1993 constitution was valid, the court held that the congregation's property belongs to New Hope Lutheran Ministry-- the group that remains loyal to ELCA. However the court concluded that funds held by a Foundation that was created to support Faith Lutheran Church belong to the break-away congregation. The Montana Supreme Court also published a Synopsis of the Case.  Great Falls Tribune reports on the decision.

Group Seeks Ecclesiastical Proceedings Against Episcopal Bishop For Her Civil Lawsuits Against Break-Away Parishes

Virtue Online reported yesterday that the American Anglican Fellowship (AAF), a group of current and former members of The Episcopal Church (TEC), filed a formal complaint last December with TEC's Intake Officer seeking to invoke formal ecclesiastical proceedings against Presiding Bishop Katherine Jefferts Schori because of the litigation in civil courts that she has undertaken against break-away parishes. AAF claims:

The litigation authorized by the Presiding Bishop and various bishops asks courts to interpret provisions of the Constitution and Canons. The litigation thus violates Canon IV.19.2, which provides that "No member of the Church, whether lay or ordained, may seek to have the Constitution and Canons interpreted by a secular court, or resort to a secular court to address a dispute arising under the Constitution and Canons, or for any purpose of delay, hindrance, review or otherwise affecting any proceeding under this Title." 

The litigation further violates Canon IV.4.1(e), which requires the Presiding Bishop and various bishops, as members of the Clergy, to "safeguard the property and funds of the Church and Community." The expense for litigation is a violation of the canon since other solutions with substantially less cost have been used in the past and today by TEC as well as the Presbyterian and Lutheran Churches. 

For failure to safeguard the property and funds of the Church, the Presiding Bishop "shall be accountable" (Canon IV.4.2).

The AAF complaint says: "We framed this document in a caring and loving way ... not to discipline, but to achieve an Accord of conciliation as Christ would have us do, to bring an end to this madness of Christians suing Christians," AAF has not yet received a formal response from TEC to its complaint.