Superior Court Denies LA Episcopal Diocese's Motion for Attorney's Fees

(Press Release)

SANTA ANA, Calif. ”“ May 15, 2009 ”“ Orange County Superior Court Judge Thierry P. Colaw today denied a motion by the Episcopal Diocese of Los Angeles which would have forced St. James Church and its volunteer board of directors to pay the Diocese’s attorneys’ fees in this ongoing property dispute.

The case began when St. James Church disaffiliated from the Episcopal Diocese of Los Angeles and the Episcopal Church over theological differences in August 2004. The Diocese then sued St. James Church, All Saints Church in Long Beach, and St. David’s Church in North Hollywood, and each of their volunteer board members in September 2004. Subsequently, the national Episcopal Church intervened in the lawsuit with its own claims. The three local churches brought special motions to strike the Diocese’s suit under a unique California statute providing for early evaluation of cases involving free speech rights.

The Superior Court initially granted St. James Church’s motion, but the case made its way to the California Supreme Court, which reversed and reinstated the Diocese’s suit. St. James Church recently announced that it will file a petition for writ of certiorari with the United States Supreme Court to seek further appellate review. Even as St. James Church prepares its bid to the United States Supreme Court, the case continues to proceed in the Superior Court.

Today’s motion was a heavy-handed attempt by the Diocese, which has engaged in “scorched earth” litigation tactics against St. James Church for years, to recoup its attorneys’ fees. The Diocese claimed that St. James Church’s earlier special motion to strike was “frivolous” and warranted the sanction of a fees award.

The Superior Court considered briefs filed by both sides and heard oral argument. While the special motion procedure had never before been used in a church property dispute, the Court ruled that it was not frivolous, and had been brought in good faith by experienced and well-qualified defense counsel. As a result, the Court denied the Diocese’s motion for attorneys’ fees and set the case for a further status conference in September.

St. James Church continues to hold services and to operate in its property at 3209 Via Lido in Newport Beach, and remains committed to spreading the Gospel and the traditional Faith.

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Posted in * Anglican - Episcopal, * Culture-Watch, Episcopal Church (TEC), Law & Legal Issues, TEC Conflicts, TEC Conflicts: Los Angeles

13 comments on “Superior Court Denies LA Episcopal Diocese's Motion for Attorney's Fees

  1. Fr. Dale says:

    Good news for our DSJ and all it’s vestry and chapter members!

  2. NoVA Scout says:

    Because it is so rare in America for attorneys fees to be awarded to prevailing parties, the tragedy of all this litigation is that both sides are wounded, regardless of results.

  3. Chris says:

    they. will. stop. at. nothing.

  4. A Senior Priest says:

    I believe that one of the rector’s of the churches involved told me that their vestries were, ironically, when they made their decision to change jurisdictions, covered by directors’ insurance carried by the Church Insurance Company.

  5. Cennydd says:

    If this is true, then we can feel assured, but I think Schori and Company will keep on trying to put the squeeze on everyone who opposes them. For them, this is a knock-down, drag out, no holds barred war against us….with the winner taking all. But what it [b]REALLY[/b] is is a war against the whole of traditional orthodox belief as Anglican Christianity has accepted it, and for them, it is a war to the bitter end.

  6. NoVA Scout says:

    Cennydd: It is much more limited than that. These legal issues are pretty much confined to situations where departing worshippers attempt to take property with them. Where folks just leave, either individually or en masse, I don’t think there is any opposition from “Schori and Company.” Given that the issues that motivate departures are seen by the departers as theological, the bricks and sticks should be of minimal concern. It the remaining Episcopalians can’t sustain the properties, then at some point down the road, some of those properties can be probably be purchased or otherwise acquired. This (the legal process, that is) is an entirely avoidable conflict caused entirely by secular property disputes.

  7. Bystander says:

    As a point if information, the defendants were covered by Church Mutual Insurance Company for $1,000,000 aggregate coverage for all 15 defendants. That coverage was voided when the church refused to use the lawyers offered by the insurance company. Although the total amount claimed by the Diocese was never divulged to the court prior to the decision to overrule the diocese motion for fees, the estimate was in the neighborhood of $10,000,000. This is what conservatives in the church are facing when they want to keep their property-an all out scorched earth attack by the Presiding Bishop who incidentally wants to be known as the Princess of Peace and Reconciliation. This person is a wolf in sheep’s clothing. She must be revealed as the fraud she is. This blog is only nibbling around the edges. Get Real!

  8. Cennydd says:

    NoVa Scout, I stand by what I have said. In the sense that Episcopalians view the issue of departing congregations taking their properties with them, it is limited. But for the rest of us, it isn’t. It’s “the whole nine yards.” Everything.

  9. Cennydd says:

    And thank you, Bystander.

  10. Juandeveras says:

    Bruno visits out church tomorrow. It should be interesting.

  11. NoVA Scout says:

    Cenydd: My limited point is that all litigation of which I am aware of is confined to the issue of whether those leaving the Episcopal Church can take/retain real and personal property as they leave. But for that issue, there would be no litigation. The issues that you, I and many others care about most would be more clearly visible and understood if this infernal lust for earthly goods were not bleeding both sides dry and creating its own controversy. I simply do not understand why the principles involved have to be sullied by people trying to cling to property. The departing groups should simply leave. That would be a very strong statement. And the resources of both factions would then be available for Christ’s work, not attorneys’ fees and costs.

  12. Bystander says:

    Nova Scout: Read the recent Cal Supreme Court decision re: St James vs Los Angeles Diocese. The Diocese was able to enforce the so called Trust Canon and as of this moment owns the property, and that decision affects all parties whose bylaws have such a clause, ie Episcopal, Lutheran, Presbyterian, etc. Your wish has been granted.

  13. NoVA Scout says:

    Bystander: My wish is that the secular courts never have reason to become involved in these issues. They are a very crude and inappropriate mechanism for addressing the issues of departure and new church formation.