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Words over deeds: the background of the East Carolina case
By Scott Nunn
2003-123a
6/5/2003
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[Episcopal News Service]
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.
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