wfn.org | Episcopalians: Appeals court upholds ruling in East Carolina property dispute

[dmack@episcopalchurch.org]

June 5, 2003

2003-123

Episcopalians: Appeals court upholds ruling in East Carolina 
property dispute

by Scott Nunn

(ENS) In a unanimous decision issued June 3, a three-judge panel 
of the North Carolina Court of Appeals has upheld a lower-court 
ruling declaring that St. Andrew's Episcopal Church in Morehead 
City belongs to the Diocese of East Carolina.

Although the ruling favors the diocese and the St. Andrew's 
members who chose to remain in the Episcopal Church, the faction 
that left and later affiliated with the Province of Rwanda 
through the Anglican Mission in America still has the right of 
appeal and it is not yet clear how the ruling from the appeals 
panel may play out. 

"I rejoice that the Episcopalians of St. Andrew's Church may 
soon find themselves restored to their parish home, which had 
been seized by members of the Anglican Mission in America," said 
Bishop Clifton Daniel III in a statement. "It is my hope that 
both groups will engage such transitions which may arise from 
this decision with charity, goodwill, and peaceful intent, being 
faithful stewards of the charge given to us by Jesus: that we 
love one another. 

"To this end, it has been and remains my constant desire that 
Episcopalians will once again find a church home on Arendell 
Street in Morehead City which welcomes all who seek to practice 
their faith as members of the Episcopal Church in the United 
States of America. Any members of the departing congregation who 
wish to remain and renew their membership in the Episcopal 
Church will be welcomed as brothers and sisters in Christ."

Trial court did not err'

In January of 2002, Superior Civil Court Judge John Jolly issued 
a summary judgment stating that the disputed property belongs to 
the diocese. A summary judgment means that there are no disputed 
facts to be decided by a jury and that the judge is left to 
apply the applicable laws to the case.

In the summary judgment, Jolly ordered that all property being 
held by the faction that left the Episcopal Church be turned 
over to the Diocese of East Carolina. When the breakaway faction 
appealed the judge's ruling to the Court of Appeals, Jolly 
issued a stay of his orders pending the appeal.

Writing for the panel in the case Daniel vs. Wray, Judge Robert 
C. Hunter said: ". . . The trial court did not err in denying 
defendants' motion to dismiss plaintiffs' action for failure to 
allege the Diocese in an assumed name certificate. Nor did the 
court commit prejudicial error by not joining PECUSA as a real 
party in interest. Moreover, the court did not err in granting 
plaintiffs' summary judgment motion with respect to ownership of 
the St. Andrew's property and enjoining defendants from using 
the name St. Andrew's Episcopal Church' or any name confusingly 
similar."

The defendant in this case is the breakaway faction and the 
plaintiff is the Diocese of East Carolina and members of the 
parish that chose to remain in the Episcopal Church. 

Hunter continued, "The canons clearly established a form of 
governance impliedly assented to by defendants that precluded 
the seceding vestry from taking control of the St. Andrew's 
property."

ECUSA canons upheld

The ruling appears to support the so-called Dennis Canon (Canon 
I.7.4) of the Episcopal Church USA, which states: "All real and 
personal property held by or for the benefit of any Parish, 
Mission or Congregation is held in trust for this Church and the 
Diocese thereof in which such Parish, Mission or Congregation is 
located."

Additionally, Canon II.6.2 of the Episcopal Church states: "It 
shall not be lawful for any Vestry, Trustees, or other body 
authorized by laws of any State or Territory to hold property 
for any Diocese, Parish or Congregation, to encumber or alienate 
any dedicated and consecrated Church or Chapel, or any Church or 
Chapel which has been used solely for Divine Service, belonging 
to the Parish or Congregation which they represent, without the 
previous consent of the Bishop, acting with the advice and 
consent of the Standing Committee of the Diocese."

If the breakaway group does choose to appeal, they can appeal 
first to the full Court of Appeals (since the appeal was heard 
by a three-judge panel of the court), and then to the North 
Carolina Supreme Court. Since the decision is unanimous with no 
dissent, the appeal to the Supreme Court is discretionary, that 
is, within the Supreme Court's discretion to grant or deny 
appeal. Without a dissent in the appeals court, there is no 
automatic right of appeal to the Supreme Court.

------

See Documents Relating to St. Andrew's Morehead City Dispute for 
more information.

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