SANTA ANA, CA: Superior Court Rules Newport Beach Property belongs to Diocese
By David W. Virtue
www.virtueonline.org
May 6, 2013
The Orange County Superior Court yesterday granted a motion by the Episcopal Diocese of Los Angeles seeking possession of a Newport Beach church campus owned by St. James Anglican Church.The Rev. Richard Crocker who serves as St. James' chief pastor, said, "We are obviously disappointed at the ruling of the court, and surprised that an agreement reached over 20 years ago to facilitate the development of our campus could be swept away like this. But we are a church seeking to follow Jesus, and pursue his mission. We will be in prayer for guidance as to our next steps."
"The wrinkle in the St. James case -- a feature which distinguished it from the cases of two other parishes in the Diocese of Los Angeles (St. David's Hollywood; and All Saints, Long Beach) which Judge Dunning ruled last September could not retain their properties either -- was that St. James had been given an explicit letter from the Diocese in 1991 prior to purchasing the property at issue here, and undertaking the multi-million-dollar expense of developing it. The letter, written by then Canon to the Ordinary D. Bruce MacPherson (who resigned last year from his later jurisdiction as the bishop diocesan of Western Louisiana), told the parish (its text is reproduced on page 5 of the opinion linked above, and a facsimile of the original may be viewed on page 12 of the brief linked here; I have added the bold emphasis below): The Rector, Wardens and Vestry of Saint James' Parish, Inc. of Newport Beach, are given permission by the Bishop of Los Angeles, the Rt. Rev. Frederick H. Borsch, to purchase and own the property on 32nd Street in Newport Beach, in the name of the Rector, Wardens and Vestry of Saint James' Parish, Inc. and not held in trust for the Diocese of Los Angeles, or the Corporation Sole", noted "Curmudgeon" canon lawyer Allan S. Haley.
The Rector, Wardens and Vestry of Saint James' Parish, Inc. of Newport Beach, were given permission by the Bishop of Los Angeles, the Rt. Rev. Frederick H. Borsch, to purchase and own the property on 32nd Street in Newport Beach, in the name of the Rector, Wardens and Vestry of Saint James' Parish, Inc. and not held in trust for the Diocese of Los Angeles, or the Corporation Sole -- a feature which distinguished it from the cases of two other parishes in the Diocese of Los Angeles (St. David's Hollywood; and All Saints, Long Beach) which Judge Dunning ruled last September could not retain their properties either.
St. James, a congregation of approximately 700, has worshipped at the Lido Isle property since 1949. In 1991, before purchasing the adjacent parcel and raising funds from its members to build an entirely new sanctuary and administrative offices, St. James asked for a letter from the Diocese waiving any ownership claims, which the Diocese provided. In 2004, after longstanding differences of opinion, St. James' congregation voted to disaffiliate from the Diocese and the national Episcopal Church. Both then sued the Newport Beach church, claiming ownership of the 11 year old buildings.
Daniel F. Lula, lead counsel for St. James, said the ruling was unexpected both in its content and because the case was scheduled to go to trial on May 6. "We're obviously disappointed in the court's ruling. By holding that the written waiver the Diocese gave St. James was ineffective, the court's opened the door to denominations walking back on their promises to local congregations. At this point, we're evaluating whether to appeal."
The court's ruling does not contain a date by which St. James must turn over the property, and the ruling may be put on hold pending appeal. For the time being, St. James continues to worship at 3209 Via Lido, Newport Beach.
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