wfn.org | UPDATE: Judge sends East Carolina property dispute back to jury trial

[ENS@ecunet.org]

2001-204

Judge sends East Carolina property dispute back to jury trial

by Scott Nunn

     (ENS) A North Carolina judge denied motions from both sides for a so-called 
"directed verdict" or a "judgment notwithstanding the verdict" in a dispute over 
parish property in Morehead City on August 1. Both motions argued that the facts 
of the case were clear and asked the judge to apply the proper state law.

     In denying the motions, Judge John B. Lewis Jr. effectively sent the case 
back to a jury trial. The first trial ended July 14 in a mistrial after the 
deadlocked jury said it could not reach a decision in the case, which concerns a 
property dispute between the Diocese of East Carolina and dissident members of 
St. Andrew's in Morehead City.

     The clergy and vestry of St. Andrew's notified Bishop Clifton Daniel III in 
March 2000 that the parish was withdrawing from the Episcopal Church and the 
Diocese of East Carolina and aligning itself with the Anglican Province of Rwanda 
and the "Interim Anglican Expression in the United States," which would later 
become the Anglican Mission in America. Those leaving the Diocese of East 
Carolina said they had clear claim to the property and remained in the church 
building.

     But Daniel informed those leaving the church that while individuals may 
leave, no vestry has the authority to withdraw a parish from membership in the 
Episcopal Church or one of its dioceses. He asked that those leaving St. Andrew's 
turn over all property of the church to the custody of the diocese and those who 
chose to remain in the Episcopal Church. The vestry that left the Episcopal 
Church refused Daniel's request. The trustees of the diocese and the newly formed 
vestry of St. Andrew's Episcopal Church filed a suit in Carteret County Superior 
Court on May 12, 2000 laying claim to the church property and assets. 

     On July 31, Judge Lewis heard arguments in a Farmville court room. Unlike 
the packed court room in Carteret County, only the attorneys and three 
representatives from the Diocese of East Carolina were present. No testimony was 
heard in the proceeding, which consisted of the attorneys outlining their motions 
and answering the judge's questions about their motions.

     Attorneys for the plaintiffs argued that it was clear that the church held 
the property in trust for the Diocese of East Carolina. When the vestry withdrew 
from the Episcopal Church and associated itself with the Province of Rwanda, its 
members had no legal right to keep possession of any property since they were no 
longer Saint Andrew's Episcopal Church of the Protestant Episcopal Church in the 
United States of America, the plaintiffs argued. Claude Wheatley, lead attorney 
for the plaintiffs, used as an example the fact that people who live in a town in 
North Carolina are free to move to another town, cannot withdraw the town from 
the state of North Carolina and take the town's property. He said when the vestry 
members withdrew from the church they surrendered any rights they had over the 
property.

     The motion filed by the plaintiffs argued that the relationship between a 
church and diocese in a hierarchical system such as the Episcopal Church 
"constitutes a contract, and the court, not the jury, has the obligation to 
construe and interpret all matters of law . . .," therefore a directed verdict 
was in order.

     Attorneys for the defense argued that the deeds to the church properties 
were held "in fee simple," solely by the church and not in trust for the Diocese 
of East Carolina and that, although the church vestry had withdrawn from the 
Diocese of East Carolina and the Episcopal Church USA, it was still the "true" 
St. Andrew's Episcopal Church. 

     It was not clear when a new trial might be scheduled.

     Meanwhile, the judge denied a motion by the plaintiffs (the Diocese of East 
Carolina and St. Andrew's Episcopal Church of the Diocese of East Carolina) 
requesting an injunction to stop the church associated with the Province of 
Rwanda from using the name St. Andrew's Episcopal Church within Carteret County, 
saying he knew of no major confusion caused by both parties using the same name.

-- Scott Nunn is Director of Communications for the Diocese of East Carolina.