wfn.org | Episcopalians: Words over deeds: the background of the East Carolina case

[dmack@episcopalchurch.org]

June 5, 2003

2003-123a

Episcopalians: Words over deeds: the background of the East 
Carolina case

by Scott Nunn

(ENS) The controversy over who owns the property of St. Andrew's 
Episcopal Church in Morehead City, North Carolina dates back 
more than three years.

In March of 2000, the vestry of St. Andrew's notified Bishop 
Clifton Daniel III that it was withdrawing the congregation from 
the Diocese of East Carolina and the Episcopal Church in the 
United States. The vestry said it was withdrawing because of the 
Episcopal Church's "unrebuked rejection of the authority of Holy 
Scripture," and joining the "Interim Anglican Expression in the 
U.S.," otherwise known as the Anglican Mission in America, under 
the authority of Bishop Charles Murphy. The vestry also said it 
had clear deed to all property.

In a letter to the people of St. Andrew's, Daniel said that 
while any individual may choose to leave the diocese, a vestry 
has no authority to withdraw an entire congregation. Daniel also 
said that while some may have chosen to leave the Episcopal 
Church, "St. Andrew's Episcopal Church has not been dissolved 
and is a continuing parish of The Episcopal Church and Diocese 
of East Carolina." At this moment, he continued in the letter, 
St. Andrew's Episcopal Church does not have a legally 
constituted vestry or wardens.

Daniel asked those members who chose to remain in the Episcopal 
Church to meet with him. A group met, elected a new vestry and 
began worshiping at Morehead City Middle School. They are now 
meeting in a former bank.

On March 29, 2000, Daniel sent a letter to the leaders of the 
breakaway group requesting them to vacate the property and turn 
all assets and records over to him.

The breakaway group did not comply with Daniel's request and on 
May 12, 2000, a complaint was filed in Carteret County Superior 
Court by the Diocese of East Carolina, Daniel, and Nicholas F. 
Theuner, Harriet Gruber, and Dorothy Raney, acting as vestrymen 
of St. Andrew's Episcopal Church.

The lawsuit asked the court to rule that all of the properties 
owned in the name of St. Andrew's Episcopal Church and 
beneficially owned by the diocese be immediately restored to the 
diocese; that the plaintiffs be declared the owners of all real 
estate; and that the defendants be restrained from the use of 
the name "St. Andrew's Episcopal Church," or any designation 
"confusingly similar."

The case went to court in July 2001, but ended in a mistrial 
after the jury could not reach a verdict. A retrial was 
scheduled for January of 2002 before Judge John Jolly.

Before the retrial lawyers for the plaintiffs filed a motion for 
summary judgment, arguing that there were no questions of fact 
for a jury to decide and asked the judge simply to apply the 
appropriate law to the case.

On Jan. 10, 2002, Jolly issued a summary judgment in favor of 
the diocese and the group that remained part of the Episcopal 
Church. The summary judgment ordered all property turned back 
over to the plaintiffs; the cloud cleared from the titles; and 
an accounting of all monies and assets. The judge also barred 
the breakaway group from using the name "St. Andrew's," but 
denied the plaintiffs' request that the defendants bear all 
legal costs.

On Jan. 18, Jolly issued a Stay of Judgment Pending Appeal, with 
the following conditions:

--  Within 30 days the defendants (the AMiA group) were required 
to make a detailed written accounting to the plaintiffs for all 
personal property, tangible and intangible, such as cash, bank 
accounts, securities, etc., and account for all expenditures, 
disposal or loss of assets from March 12, 2000.

--  The defendants were to post a bond in the amount of $350,000 
for the purpose of assuring all monetary payment and delivery of 
real property and to protect the plaintiffs from damages that 
may be suffered by them while the defendants remain in 
possession of the property should there occur any waste.

--  During the stay, the defendants were to keep all real and 
personal property in good and reasonable condition and not waste 
any such properties.

--  Defendants were to insure against loss from fire, theft, 
wind and hail and other casualty risks all buildings and 
fixtures in a sum equal to replacement costs.

--  Defendants were to pay all taxes and all indebtedness of the 
church organization.

--  Plaintiffs were to have temporary possession of the 
sanctuary and parish hall at Arendell Street for weddings and 
funerals, with proper notice given.

------

--Scott Nunn is editor of Cross Current and web editor for the 
Episcopal Diocese of East Carolina.