Supreme Court Denies Review In Break-Away Church Property Dispute

The U.S. Supreme Court yesterday denied certiorari in Falls Church v. Protestant Episcopal Church, (Docket No. 13-449, cert. den. 3/10/2014). (Order List.) In the case, the Virginia Supreme Court ordered that a break-away local congregation must convey most of its property to The Episcopal Church by reason of TEC's "Dennis Canon," but remanded as to personal property acquired by the local congregation after its vote to disaffiliate from TEC. (See prior posting.) Religion News Service reports on the Court's denial of review. [Thanks to Bob Tuttle for the lead.]

Federal Court Refuses To Reconsider Abstention In South Carolina Episcopal Church Dispute

In vonRosenberg v. Lawrence, (D SC, Jan. 15, 2014), a South Carolina federal district court denied a motion for reconsideration of its August 2013 decision to abstain and decline jurisdiction over a trademark infringement case growing out of the controversy between a large break-away portion of the Episcopal Diocese of South Carolina and the smaller number of parishes that remain loyal to The Episcopal Church.  The court there held that the trademark dispute is part of a larger dispute over ownership of the Diocese's property being litigated in state court.  In denying reconsideration, the court said that the motion is based merely on disagreement with the court's earlier abstention ruling. TitusOneNine blog discusses this week's decision from the perspective of break-away churches. [Thanks to John Chilton for the lead.]

Earlier Appellate Decision In Texas Church Property Case Withdrawn In Light of New State Supreme Court Ruling

In Windwood Presbyterian Church, Inc. v. Presbyterian Church (USA), (TX App., Jan. 7, 2014), the Texas Court of Appeals withdrew an opinion it had issued in 2012 (see prior posting) in a dispute over ownership of church property and issued a new opinion taking account of a subsequent Texas Supreme Court ruling in the Masterson case that the "neutral principles of law" approach should be used in Texas in deciding church property cases. (See prior posting.) The Court of Appeals concluded:

... [T]he denominational church’s [summary judgment] motion was based solely on the contention that this property dispute should be resolved by applying the hierarchical deference approach and deferring to governing church authorities on the issue.... Because this was the only ground urged for summary judgment, under Masterson, the denominational church’s summary judgment must be reversed and remanded to the trial court.

Insurance Company Must Defend South Carolina Episcopal Church In Trademark Suit By Breakaway Diocese

In The Episcopal Church in South Carolina v. Church Insurance Company of Vermont, (D SC, Jan. 6, 2014), a South Carolina federal district court held that an commercial liability insurance policy issued by Church Insurance Company of Vermont requires the insurance company to defend The Episcopal Church in South Carolina (TEC-SC) in a state court lawsuit against it by a break-away diocese over which group has the right to use the Episcopal Church trade names, trademarks, services, and emblems. (See prior posting.) The court also held that the insurance company had breached its contract in refusing to defend TEC-SC, but that bad faith had not been shown. TEC-SC issued a press release announcing the decision.

The Episcopal Church Sues Break-Away Illinois Diocese Over Property

The Episcopal Diocese of Chicago and The Episcopal Church last week filed a state court lawsuit claiming that property held by or for parishes and missions of the break-away Anglican Diocese of Quincy may only be used for the benefit of The Episcopal Church. (Press release). The complaint (full text) in The Episcopal Church v. Morales, (IL Cir Ct., filed 11/6/2013), seeks a declaratory judgment that the individual defendants do not hold any offices in the Episcopal Diocese of Quincy and that the parishes and missions are controlled by clergy and officers appointed or elected by The Episcopal Church.  In a case decided earlier this year, Diocese of Quincy v. The Episcopal Church, (IL Cir. Ct., Sept. 9, 2013), a different state trial court held that the break-away Anglican Diocese holds title to the bank account and administrative offices of the Diocese. The court held that the Dennis Canon on which The Episcopal Church in part relied relates to parish or mission properties and not to properties titled in the name of the Diocese. Anglican Curmudgeon blog discusses the background and strongly criticizes the Diocese of Chicago for the suit filed last week.