Former Priest's Defamation Claim Dismissed Under Ecclesiastical Abstention Doctrine

In Episcopal Diocese of Southern Virginia v. Marshall, (VA App., July 16, 2024), a Virginia state appellate court held that a defamation per se claim by a former Episcopalian priest against a bishop who removed him from the ministry should be dismissed under the ecclesiastical abstention doctrine. The former priest, Robert Marshall, allegedly made improper comments to a female employee. The court said in part:

We find that the defamation claim is inextricably intertwined with the disciplinary proceedings that led to the priest’s ouster.  In addition, the trier of fact would have to decide if the priest committed “sexual misconduct” within the meaning of canon law, which proscribes a broader swath of conduct than secular law....

Marshall claims that the bishop falsely stated that the investigator had “determined that the allegations had merit.” ... He says that the bishop falsely stated that Marshall had admitted to the improper conduct....  He pleads that Bishop Haynes also lied when she claimed that the church had followed the process required under ecclesiastical law....

[A]lthough Marshall denies that he wants a secular court to undo his defrocking, his defamation claim is so intertwined with the bishop’s deposing him as a priest that the defamation claim cannot be litigated without entangling the court in a religious dispute.  When a priest who has been fired sues the church and its leadership raising tort claims that cannot be unscrambled from the church’s decision to fire him, “the First Amendment has struck the balance for us.” ...  Churches have an overarching interest “in choosing who will preach their beliefs, teach their faith, and carry out their mission.” ... In order for a church to remain “free to choose those who will guide it on its way,” ... such tort claims must sometimes give way. 

... The trial court erred in concluding that Marshall’s claim for defamation per se against Bishop Haynes could be resolved on secular principles...

Court Dismisses Suit Over Disclosure of Clergy-Penitent Conversation

In Stephens v. Metropolitan New York Synod of the Evangelical Lutheran Church in America, (Dutchess Cty. NY Sup. Ct., April 29, 2024), a New York state trial court dismissed a suit for breach of fiduciary duty, infliction of emotional distress, hostile work environment and defamation brought by an Episcopal clergyman, who was also on the Roster of Ministers of the Evangelical Lutheran Church. Plaintiff had sought out pastor Christopher Mietlowski for a confidential confessional conversation about an extramarital affair. Despite the assurance of confidentiality, Mietlowski disclosed the information to the bishop of the New York Synod of the ELCA who in turn disclosed the information to plaintiff's wife who was also a pastor. The bishop also disclosed the information to the Episcopal Church which suspended plaintiff's license to officiate. Subsequently, ELCA removed plaintiff from its roster of clergy.

The court held that even though New York has codified the clergy-penitent privilege, that provision does not give rise to a cause of action for breach of fiduciary duty when a conversation between a congregant and a member of the clergy is disclosed. The court also rejected plaintiff's claims growing out of his removal from the roster of ministers of the ELCA saying that this was an ecclesiastical decision about a minister's qualifications to serve which is beyond the power of civil courts to review.

Restricting Frequency of Church Free Meal Services Violates RLUIPA

 In St. Timothy's Episcopal Church v. City of Brookings, (D OR, March 27, 2024), an Oregon federal district court held that a zoning ordinance that limits the number of days that a church can serve free meals to people in need violates the federal Religious Land Use and Institutionalized Persons Act. St. Timothy's has been offering free lunchtime meals since 2009 and sees this as fundamental to their Episcopalian faith. Most recently meals have been served three to four times per week. In 2021, the city amended its zoning code to require a conditional use permit for "benevolent meal services" in residential districts and limited such services to two times per week. Finding that the city has burdened the church's religious exercise without a compelling interest in violation of RLUIPA, the court said in part:

[P]rotecting the public welfare, maintaining peace and order, and preventing crime are all certainly compelling government interests in a broad, general sense. However, the City has not articulated how the specific provisions of the Ordinance that limit meal service to two days per week ... serve to protect public welfare, maintain peace and order, or prevent crime in practical application. The Court can find no logical, causal relationship between the limitation and these interests....

Here, the City has long permitted, and arguably even supported benevolent meal services at St. Timothy's, without limitation as to the number of days such meals could be provided. This undisputed fact is fatal to their argument that the Ordinance's restrictions are intended to promote public welfare, peace, and order, and to deter crime....

... [T]he City has not shown that it considered and rejected the efficacy of less restrictive measures.

Defamation Claim Not Subject to Ministerial Exception Doctrine; Discrimination and Contract Claims Are

In Uzomechina v. Episcopal Diocese of New Jersey, (D NJ, Jan. 18, 2024), a New Jersey federal district court held that the ministerial exception doctrine requires the court to dismiss racial discrimination and wrongful discharge claims brought by an African-American Episcopal priest who was dismissed from his position after allegedly false charges of financial and sexual misconduct. The court dismissed the claims saying that they "directly implicate the employment relationship between the religious institution and its ministerial employee." It dismissed breach of contract claims for similar reasons.

Plaintiff also brought a defamation claim against the Diocese for passing on false information about him to his subsequent employer-- a drug abuse rehabilitation center. The court concluded that this claim was not barred by the ministerial exception doctrine, saying in part:

... [B]y sharing its internal disciplinary procedures and beliefs with a secular third-party, ... the Diocese Defendants subjected itself to the laws that govern the public realm. In other words, exercising jurisdiction over Plaintiff's claim will not second-guess or threaten the Diocese Defendants' decisions to investigate its clergy, find misconduct by a clergy member, or impose internal disciplinary measures against a member of the church. What it will threaten is a religious organization's ability to make false and defamatory statements about its clergy or members to the general public, outside of the organization's internal operations. The ministerial exception, therefore, is not applicable to Plaintiff's defamation claims.

The court, nevertheless, dismissed this claim without prejudice for failing to adequately set out facts supporting the claim.

Episcopal Priest Sues County Commissioners Over Invocation Policy

Suit was filed this week in a Michigan federal district court by an Episcopal Priest in Grand Haven, Michigan, challenging the manner in which the Ottawa County Board of Commissioners currently selects individuals to deliver invocations at Board meetings. The complaint (full text) in Cramer v. Ottawa County, (WD MI, filed 10/2/2023), alleges that prior to 2023, different Commissioners on a rotating basis selected individuals to offer invocations. However, since January 2023 when Joe Moss became Chairperson of the Commission, only he selects persons to give invocations.  He has selected only male pastors of Christian churches who share his religious beliefs.  Some of the pastors have included in their invocations praise for a far-right political group that Moss founded and leads. Plaintiff is an advocate of LGBTQ rights, while Moss has promoted an anti-LGBTQ agenda. Grand Haven Tribune reports on the lawsuit.

Church Cannot Remove Cremated Remains Over Objections Of Families

In Church of the Holy Spirit of Wayland v. Heinrich, (MA App., May 5, 2022), a Massachusetts state appellate court held that a church which had sold its property was not free to relocate cremated remains buried in its churchyard over the objections of families of those buried there. In the case, an Episcopal parish that had ceased operating sold it church building and attached burial ground to a Coptic church.  The Coptic church wanted to develop the land; it also had religious objections to cremation. The court said in part:

[I]n the absence of a governing statute, common law trust principles apply to the disinterment of human remains from a dedicated burial ground until the families of the deceased have abandoned the remains or the burial ground is no longer recognizable as such....

It is uncontested that the Coptic church has a sincerely held opposition to cremation on religious grounds. The next question, however, is whether judicial relief in favor of the families would substantially burden the Coptic church's exercise of its religious beliefs.... [W]e fail to see how a judicial order preventing the Coptic church from removing those remains would constitute government interference with that church's free exercise of religion rights. And it bears noting that the unilateral disinterment of the remains potentially might implicate the families' own free exercise of religion rights.

The court also concluded that allowing two parties who had purchased burial rights for their own remains to be buried in the churchyard next to remains of their families would not infringe the free exercise rights of the Coptic church:

[I]t simply would prevent the Coptic church from interfering with rights that the individuals themselves hold in the property. Nor has the Coptic church demonstrated that such a judicial order could be seen as compelling it to endorse cremation.

Supreme Court Denies Certiorari In Church Property Dispute

The U.S. Supreme Court today denied review in two related cases, All Saints Episcopal Church v. Diocese of Fort Worth (Docket No. 20-534) and The Episcopal Church v. Diocese of Fort Worth (Docket No. 20-536), certiorari denied 2/22/2021. (Order List.) In the cases, the Texas Supreme Court resolved a factional property dispute between a break-away congregation and The Episcopal Church. It held that using neutral principles, property of the diocese belongs to the withdrawing faction that affiliated with the more conservative Anglican Province of the Southern Cone. (See prior posting.)

South Carolina Episcopal Parishes All Win Title To Their Property

In Protestant Episcopal Church in the Diocese of South Carolina v. The Episcopal Church, (SC Common Pleas, June 19, 2020), a South Carolina trial court was called upon to interpret a confusing decision by the South Carolina Supreme Court in a long-running property dispute that arose after a split in the Episcopal Church in South Carolina.  In a 2017 decision, the 5-member South Carolina Supreme Court in 5 separate opinions spanning 77 pages purported to resolve the factional property dispute. The trial court concluded that, under the state Supreme Court's decision, 36 parishes are the owners of their parish real estate and accompanying personal property. The court said in part:

This Court must distill the five separate opinions, identify the Court’s intent, and produce a logical directive. It must harmonize these opinions and find common ground among them. The issue is whether the 1979 Dennis Canon or any parish’s alleged accession to that Canon created a legally cognizable trust under South Carolina law....

At issue is ownership of real property, purchased and managed exclusively by the Plaintiff Parishes including land and buildings, considerable funds, and other personal property such as books, silver, and historical archives. The crux of the disagreement rests upon the Dennis Canon and its legal effect on whether this property was ever held in trust for TEC or TECSC....

This Court finds that the Plaintiffs merely promised allegiance to TEC and without more, this promise cannot deprive them of their ownership rights in their property. This Court finds no Parish expressly acceded to the 1979 Dennis Canon. The Dennis Canon was not mentioned by name in any of the evidence, and Defendants admitted that the Dennis Canon is not referenced in any of the deeds of parish property.... As a result, there is no trust created in favor of the Defendants, TEC and TECSC.

Christian Post reports on the decision.

Texas Supreme Court Rules In Favor of Break-Away Episcopal Diocese

The Texas Supreme Court today issued a decision in the long-running property dispute between the Episcopal Diocese of Fort Worth and its former parent body.  (See prior related posting.) In 2007 and 2008, the Diocese withdrew from The Episcopal Church (TEC) and affiliated with the more conservative Anglican Province of the Southern Cone.  In Episcopal Diocese of Fort Worth v. The Episcopal Church, (TX Sup. Ct., May 22, 2020), the court held:

Applying neutral principles to the undisputed facts, we hold that (1) resolution of this property dispute does not require consideration of an ecclesiastical question, (2) under the governing documents, the withdrawing faction is the Episcopal Diocese of Fort Worth, and (3) the trial court properly granted summary judgment in the withdrawing faction’s favor....

Explaining its holding, the court said in part:

At bottom, the disagreement centers on what effect the majority’s disassociation vote had on the Fort Worth Diocese’s identity specifically, whether the majority faction constitutes the continuation of that entity or whether the majority left as individuals and became something else. ...

In sum, TEC’s determinations as to which faction is the true diocese loyal to the church and which congregants are in good standing are ecclesiastical determinations to which the courts must defer. But applying neutral principles to the organizational documents, the question of property ownership is not entwined with or settled by those determinations. The Fort Worth Diocese’s identity depends on what its documents say. To that end, the Diocesan Constitution and Canons provided who could make amendments and under what circumstances; none of those circumstances incorporate or rely on an ecclesiastical determination by the national church; and nothing in the diocese’s or national church’s documents precluded amendments rescinding an accession to or affiliation with TEC. Applying neutral principles of law, we hold that the majority faction is the Fort Worth Diocese and parishes and missions in union with that faction hold equitable title to the disputed property under the Diocesan Trust.

The court went on to also reject TEC's claim that the Diocese's property was held in trust for TEC.

Church Property Is Held In Constructive Trust For Parent Episcopal Diocese

In Protestant Episcopal Church v. Church of the Messiah, 2020 Va. Cir. LEXIS 52 (VA Cir. Ct., Feb. 24, 2020), which just became available on Lexis, a Virginia state trial court held that church property belongs to the Diocese of the Protestant Episcopal Church and not to the break-away parish, Church of the Messiah that adopted a "charismatic" worship tradition.  The court said in part

The Parish clearly breached its fiduciary obligation to the Diocese when its Rector and its Vestry disregarded their oath to conform to the Episcopal denomination and instead led the congregation in a vote to disassociate from the Diocese and the Episcopal Church.... In this case, the Parish stood in a fiduciary relation to the Diocese and the Episcopal Church and enjoyed title to the Property for the benefit of members of the Episcopal denomination. Over time, it appears that the members of the Parish lost sight of this relationship, instead envisioning themselves as having some personal ownership interest in the Property by virtue of their contributions to the extensive improvements and maintenance through the years. When the leaders chose to remain loyal to the congregation in its dilemma between the members' personal beliefs and the policies of the Episcopal church, the leadership was obligated to resign. Instead, they abused the authority derived from their position in the Episcopal Church by attempting to remove the Property from the Episcopal congregation for whose benefit it was held in trust and keep it for the use and benefit of another congregation entirely....

The new congregation for whose benefit the Property is currently held bears little resemblance to the mission formed by the charter members, who, when they became unsatisfied with their churches' religious practices, were willing to leave the security and comfort of their church buildings to worship in accordance with their beliefs. By attempting to "acquire an interest" in the Property on behalf of this new congregation, the leadership of the Parish breached their fiduciary duty, and, accordingly, the Court will impose a constructive trust.

Break-Away Diocese Cannot Use Former Trademarked Names

In vonRosenberg v. Lawrence, (D SC, Sept. 19, 2019), a South Carolina federal district court,in a 73-page opinion, resolved a trademark dispute between The Episcopal Church and a break-away diocese.  As summarize by World Intellectual Property Review:

A US judge has ordered a former South Carolina diocese of the Episcopal Church to change its name, after concluding the breakaway group was infringing the Episcopal Church’s trademark-protected diocesan shield.

On Thursday, September 19, District Judge Richard Gergel issued an injunction against the breakaway diocese, ordering the group not to use nine trademarks associated with the Episcopal Church and ... The Episcopal Church in South Carolina, an affiliate of the national church.

Episcopal Parish's Suit Against Its Rector Is Dismissed

In Parish of St. Paul's Episcopal Church v. Kovoor, 2019 Conn. Super. LEXIS 714 (CT Super. Ct., April 10, 2019), a Connecticut state trial court dismissed a lawsuit brought by a Darien, Connecticut parish which was seeking to remove its Rector, Rev. George Kovoor, on the ground that he made material misrepresentations of his credentials when he applied for employment.  Prior to the filing of the lawsuit, the parent church had stepped in and attempted to resolve the dispute between the parish and Kavoor, ordering that each party take certain steps. When the parish failed to take the steps called for, the parent church dissolved the parish and converted it into a Worshiping Community under direct supervision of the Bishop. The court held that it must defer to the decisions of the parent Episcopal Church:

Neutral principals of law can be applied to church disputes. Herein the plaintiffs claim common-law employment contract law is such a neutral principle of law that should be applied. Applying those provisions would relitigate the three decisions already issued by the Episcopal Church as to the St. Paul's/Kovoor Rector situation. In this court's opinion that would cause the Superior Court to examine the internal workings and polity of the Episcopal Church in Connecticut....

The court finds the March 2016 employment relationship... is religious in nature. The court finds that adjudicating the particular claims and defenses in this case will require the court to intervene into a religious institution's exclusive right to decide matters pertaining to doctrine and/or its internal governance or organization.... 

This court finds that the nature of a relief being sought in this case would entangle the Superior Court of the State of Connecticut into matters of religious hiring, religious practices and church polity. The court notes that there is no claim in this litigation concerning the title to the real property currently occupied by the Worshipping Community and formerly by St. Paul's Parish of Darien, Connecticut.

Reporting on the decision Virture Online says that St. Paul's is now operating as a state-chartered ecclesiastical society, unconnected to the Episcopal Church.

Albany Episcopal Bishop Defies Parent Body On Same-Sex Marriage Rites

In July, the General Convention of the Episcopal Church passed Resolution B012 Marriage Rites for the Whole Church, which was designed to give local congregational access to all couples wishing to have a same-sex marriage ceremony.  The Resolution stated in part:

[I]n dioceses where the bishop exercising ecclesiastical authority ... holds a theological position that does not embrace marriage for same-sex couples, and there is a desire to use such rites by same-sex couples in a congregation or worshipping community, the bishop exercising ecclesiastical authority ... shall invite, as necessary, another bishop of this Church to provide pastoral support to the couple...

Last week, in response to Resolution B012 that is to become effective on Dec. 3, the Bishop of Albany, William Love, who has been an opponent of same-sex marriage, issued a Pastoral Letter (full text) that reads in part as follows:

I cannot in good conscience as a bishop in God’s holy Church agree to what is being asked for in B012. While I respect the authority of General Convention as an institutional body, my ultimate loyalty as a bishop in God’s holy Church is to God....

Until further notice, the trial rites authorized by Resolution B012 of the 79th General Convention of the Episcopal Church shall not be used anywhere in the Diocese of Albany by diocesan clergy (canonically resident or licensed)....

Albany Times-Union reports on the Bishop's action.

More Rulings In South Carolina Episcopal Church Split

Earlier this week, a South Carolina federal district court issued another opinion in the long-running battle between competing Episcopal Church factions in South Carolina.  While the underlying dispute over which faction owns church property has been litigated in state court, a federal court suit was filed alleging a false advertising claim under the Lanham Act. Episcopal Bishop Charles von Rosenberg who heads the minority of congregations in South Carolina that remain loyal to The Episcopal Church sued Bishop Mark Lawrence who heads the larger portion of the congregations that in 2012 broke away from the national church. Von Rosenberg alleged that Lawrence engaged in false advertising by asserting that he remained the Bishop of the Diocese.  In vonRosenberg v. Lawrence, (D SC, April 16, 2018), the court allowed plaintiffs to add as defendants the Diocese, parishes and trustee corporation affiliated with Bishop Lawrence.

In a perhaps more interesting second part of the opinion, the court refused to allow the suit to be expanded to assert a novel breach of trust claim.  Last year, the South Carolina Supreme Court decided the property issue largely in favor of those who remained loyal to The Episcopal Church. (See prior posting.)  Plaintiffs sought to add a claim that "the parishes have breached their fiduciary duties by allowing property held in trust for TEC to be used 'in connection with a denomination' other than TEC."  They sought an order against 28 Parishes "to remove from their vestries any persons who cannot demonstrate to this Court's satisfaction that they are capable of and willing to carry out their fiduciary obligations to The Episcopal Church...."  The court held that it is not "free to use trust law entangle itself with religion like a fly in a spider web."  It continued:

Entry of a judicial order telling 28 congregations whom they may or may not elect to their respective parish vestries would foster excessive judicial entanglement with religion....

Of course, there are other ways for TEC to enforce its property rights. For example, TEC could take legal possession of the parish property held in trust for its benefit, rather than asking a federal court to supervise the local congregation's use the property. 

Charleston Regional Business Journal reports on the decision.

Break-Away Texas Anglican Group Loses In Latest Round of Long-Running Case

In The Episcopal Church v. Salazar, (TX App, April 5, 2018), a Texas state appeals court issued another ruling in a long running dispute over ownership of property of the Episcopal Diocese of Fort Worth. In 2008, the Diocese voted to disaffiliate from The Episcopal Church and to become part of the Anglican Province of the Southern Cone. In 2009, The Episcopal Church sued claiming ownership of the Diocese's property. The litigation has moved up and down the Texas court system, including to the Texas Supreme Court, ever since.  In this week's opinion, the state Court of Appeals reversed in part a trial court decision and held that control of the property resides in the group that remained with The Episcopal Church under the leadership of Bishop Scott Mayer, rather than with the break-away group led by Bishop Jack Iker. The court said in part:

Individual members of a parish may decide to worship elsewhere; a majority of individual members of a parish or diocese may decide to do so. But when they leave, they are no longer “Episcopalians” as identified by TEC; they become something else. And that something else is not entitled to retain property if that property, under the terms of the deed, is held in trust for a TEC-affiliated diocese or congregation. By rejecting TEC, Appellees also rejected any claim to items and property affiliated with TEC or with being a TEC-affiliated diocese to the extent that the instruments of ownership spell out an express interest. While a decision to disaffiliate is an ecclesiastical matter, what happens to the property is not, unless the affairs have been ordered so that the ecclesiastical decisions effectively determine the property issue....

In reaching its decision, the court refused to rely on  The Episcopal Church's Dennis Canon that "purports to impose a trust for TEC and TEC’s diocese on parish, mission, and congregation real and personal property," saying in part:

Because under Texas law, an entity that does not own the property to be held in trust cannot establish a trust for itself simply by decreeing that it is the beneficiary of a trust, the Dennis Canon, by itself, did not establish a trust under Texas law....

The Fort Worth Star Telegram reporting on the decision says that it is likely to be appealed to the Texas Supreme Court.

Cert. Filed In Episcopal Church Property Dispute

A petition for certiorari (full text) was filed last week with the U.S. Supreme Court in Protestant Episcopal Church in the Diocese of South Carolina v. The Episcopal Church, (cert. filed 2/9/2018).  In the case, the 5-member South Carolina Supreme Court in 5 separate opinions spanning 77 pages resolved a property dispute that arose after a split in the Episcopal Church in South Carolina. (See prior posting.)  The question presented in the cert petition is:

Whether the "neutral principles of law" approach to resolving church property disputes requires court to recognize a trust on church property even if the alleged trust does not comply with the State's ordinary trust and property law.

Anglican Curmudgeon blog discusses the cert. petition at length. [Thanks to Don Nichol for the lead.]

Ecclesiastical Abstention Requires Dismissal of Suit Over Student's Forced Withdrawal From High School

In In re the Episcopal School of Dallas, Inc., (TX App, Oct. 11, 2017), a Texas state appellate court held that the ecclesiastical abstention doctrine applies to a faith-based school, even though the school was not owned or operated by a church, saying in part:

[T]he Does cite no authority for the premise that the ecclesiastical abstention doctrine requires a showing that an institution’s “primary purpose” is religion. More importantly, asking this Court to examine and compare the contours of different religions or measure the internal application of Episcopal precepts to the school’s policies or its conduct here seeks to have us engage in the exact analysis the First Amendment precludes. 

It ordered the trial court to dismiss for lack of jurisdiction a suit by a high school student who was forced to withdraw from school because of marijuana use during his lunch hour and his conduct surrounding investigation of the incident.  the court concluded:

The Does’ claims all concern a faith-based organization’s internal affairs, governance, administration, membership, or disciplinary procedures and are protected religious decisions. Thus, the Does’ suit has no secular aspect for the courts to consider.

South Carolina Supreme Court Resolves Property Dispute In Episcopal Church

In The Protestant Episcopal Church in the Diocese of South Carolina v. The Episcopal Church, (SC Sup. Ct., Aug. 2, 2017), the 5-member South Carolina Supreme Court in 5 separate opinions spanning 77 pages resolved a property dispute that arose after a split in the Episcopal Church in South Carolina. AP summarized the background:

The conservative Diocese of South Carolina, dating to 1785 and one of the original dioceses that joined to form the Episcopal Church, left the national church in 2012 amid differences over theological issues, including the authority of Scripture and the ordination of gays. The group has since affiliated with the Anglican Church in North America, a group that formed in 2009.

Parishes in the region that didn’t leave the national church formed a diocese now known as The Episcopal Church in South Carolina.

The conservative diocese sued in efforts to protect its identity, the diocesan seal and other symbols it uses, and $500 million in church property, including the individual parishes’ holdings, as well as large properties including an Episcopal church camp in the Charleston area.

While the Supreme Court's opinions are complex, Acting Justice Toal in her dissenting opinion summarized the resulting holdings:

A majority of the Court ... agree that ... in secular church disputes, our state courts should apply neutral principles of law to resolve the case....  [T]he same majority would find this is a secular church dispute, and the Court must therefore apply longstanding trust law to resolve the questions before us. I would find the parties' actions did not comply with the formalities required to create a trust in this state....  Justice Kittredge would find the parties created a revocable trust in favor of the national church, but the plaintiffs later took steps to revoke their accession to the trust.... However ... a ... majority of the Court ... would ... transfer title of all but eight of the plaintiffs' properties to the defendants. While [2 justices] ... would do so because they believe this is an ecclesiastical dispute and the Court must therefore defer to the national church's decision on the matter, [another] would do so because he believes all but eight of the plaintiffs acceded to the Dennis Canon in a manner recognizable under South Carolina's trust law. Thus, the result reached on title is: 1) with regard to the eight church organizations which did not accede to the Dennis Canon, [3 justices] ... would hold that title remains in the eight plaintiff church organizations; 2) with regard to the twenty-eight church organizations which acceded to the Dennis Canon, [3 justices]... would hold that a trust in favor of the national church is imposed on the property and therefore, title is in the national church; and 3) with regard to Camp St. Christopher, [3 justices] would hold title is in the trustee corporation for the benefit of the associated diocese, whereas [2 others] ... would hold that the trustee corporation holds title for the benefit of the disassociated diocese. 

As to the second issue on appeal, involving the plaintiffs' claims for service mark infringement, [3 justices] ... would find the marks are validly registered under state law, but leave the ultimate resolution of the parties' conflicting claims to the pending federal case.

[Thanks to Tom Rutledge for the lead.]

Episcopal Church Still Holds Title To Property of Break-Away Diocese

In Diocese of San Joaquin v. Gunner, (CA App., April 5, 2016), a California state appeals court held that applying neutral principles of law, the property of a break-away diocese still belongs to the Episcopal Church. It held that while the trial court wrongly held that diocese held the property in trust for the Episcopal Church, nevertheless the property still belongs to the Episcopal Church because the purported transfer of the property to the break-away diocese was invalid:

Schofield [bishop of the break-away diocese] was attempting to change the title holder of the property in dispute from the corporation sole known as The Protestant Episcopal Bishop of San Joaquin to the corporation sole known as The Anglican Bishop of San Joaquin. However, because the amendment changing the name of the corporation sole to The Anglican Bishop of San Joaquin was invalid, no corporation sole known as The Anglican Bishop of San Joaquin existed when these deeds were executed and recorded. 

South Carolina Supreme Court Hears Oral Arguments In Episcopal Church Split

Yesterday, the South Carolina Supreme Court heard oral arguments in Protestant Episcopal Church In The Diocese of South Carolina v. Episcopal Church.  In the case, a state trial court held that 38 break-away Episcopal parishes in South Carolina retain ownership of their real, personal and intellectual property. It rejected claims by The Episcopal Church that an express or a constructive trust existed under which it could claim the property. (See prior posting.)  Both The State and the Post and Courier have reports on the arguments.  Also available online are the Appellants' Brief and Respondents' Brief to the state Supreme Court.  A related case is winding its way through federal courts. (See prior posting.)