LOS ANGELES: Newport Beach congregation vows to take property dispute to U.S. Supreme Court

Diocese seeks recovery of legal fees from St. James' Church

By Pat McCaughan, May 05, 2009 [Episcopal News Service] Leaders of St. James' Anglican Church in Newport Beach, California, who in January lost a bid to retain their property after disaffiliating from the Episcopal Church and the Diocese of Los Angeles, on May 5 said they intend to appeal the ruling to the U.S. Supreme Court.

"This case is far from over," said attorney Eric Sohlgren, who represented the Newport Beach congregation, during a telephone interview from his Irvine, California office on May 5.

"The key basis for the appeal is, the California Supreme Court interpreted a statute in a way that gives preferential treatment to hierarchal denominations in the way they acquire property," he said.

A majority of St. James' members voted to realign with the Anglican Province of Uganda in August 2004, citing theological disagreements with the Episcopal Church and its consecration of an openly gay bishop. They sought to retain the Newport Beach property.

A year later, Orange County Superior Judge David C. Velasquez ruled in favor of the congregation. But the California Court of Appeal reversed the lower court ruling in July 2007, deferring to church hierarchy regarding ownership of local church property. The state supreme court upheld the appellate court in January 2009.

Sohlgren said he expects to file the appeal to the nation's top court by the end of May and hopes to receive a response by October 2009.

"St. James will argue before the U.S. Supreme Court that this preferential treatment for certain kinds of religion violates the U.S. Constitution. Every group which affiliates with a larger religious group is at risk of losing its property "upon a change of religious affiliation (and) … As a result, religious freedom is suppressed," according to a statement.

John Shiner, chancellor (legal adviser) for the Los Angeles diocese, said, "I don't know the basis for the appeal, but it is probably remote that the Supreme Court would hear it."

Meanwhile, Shiner acknowledged that the diocese is hoping to recoup legal expenses from the costly court fight, which started in Orange County Superior Court and eventually wound its way through an appellate court to the California Supreme Court.

Both the appellate court and state supreme court ruled the property was held in trust for the mission and ministry of both the diocese and the wider Episcopal Church.

Shiner said the request to recoup legal expenses is a first step in a two-part process under a California law, "which provides that we can request the court to consider our fees."

If the court grants the request, the diocese will need to provide documentation about the as-yet undisclosed amount of the court costs and attorney fees.

An Orange County Superior Court judge is slated to hear arguments May 15.

-- The Rev. Pat McCaughan is Episcopal Life Media correspondent for Provinces VII and VIII and the House of Bishops. She is based in Los Angeles.

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