A California Court of Appeal has ruled in favor of The Episcopal Church and the Diocese of Los Angeles on all counts, setting the stage for a probable appeal to the state supreme court in three cases where the majority of members voted to leave The Episcopal Church for oversight by bishops in other Anglican provinces.

A three-judge panel unanimously concluded that “the right of the general church in this case to enforce a trust on the local parish property is clear,” Presiding Justice David G. Sills, wrote in the 77-page decision. Also overturned were Strategic Lawsuit Against Public Participation (SLAPP) claims against the diocese.

Three years ago, three parishes: St. James’, Newport Beach; St. David’s, North Hollywood; and All Saints’, Long Beach, severed their relationship with The Episcopal Church and placed themselves under the jurisdiction of an Anglican bishop in Uganda. Each parish claimed it was entitled to its property. The diocese, citing church canons which place all parish property in trust for the church, asserted it was entitled to retain the property. Litigation followed.

“Yesterday’s decision contains the most thorough analysis yet of church property law in California, and should dispel any notion that local congregations of a hierarchical church may leave the larger church and take property with them,” stated John R. Shiner, chancellor for the Diocese of Los Angeles.

The decision puts one division of the appellate court in direct conflict with other California court of appeal decisions, according to Eric Sohlgren, a legal spokesperson for the three parishes. The 2004 decision in Calif. Nevada Annual Conf. vs. St. Luke’s Methodist Church was only the most recent over the last 30 years in which California appellate courts have rejected the idea that it must automatically defer to the denomination in church property disputes, he said.

“Under this ruling, any big church which calls itself hierarchical could try to confiscate the property of a local congregation simply by passing an internal rule," Mr. Sohlgren said. "That idea offends basic principles of fairness and property ownership.”

If the parishes decide not to appeal to the California Supreme Court, the case will be returned to Orange County Superior Court with new instructions on which legal principle Judge David Velasquez will employ. Still at issue in the lower court, according to Mr. Sohlgren, is whether The Episcopal Church validly passed the so-called “Dennis Canon,” to which the appellate court deferred in finding in favor of the diocese and national church.

It is “unlikely” that the parishes will concede defeat as a result of the appellate court decision, Mr. Sohlgren said.

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