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Beyond Episcopal theological split, a property fight

The Episcopal Church is battling breakaway parishes over who owns the local assets.

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The tug of war has been wrenching.

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"The reality is that this is a tightly knit community and it's absolutely heartbreaking," says Henry D.W. Burt, secretary of the Episcopal Diocese of Virginia, which sued, along with the national office, to retain the properties. "A lot is at stake here, including the freedom of Virginia churches to organize themselves in ways related to their religious beliefs." The Virginia diocese has vowed to "continue to pursue every legal option available." The county judge will rule on a few remaining issues, before any formal appeal can be made.

A few dioceses have avoided litigation by negotiating and selling the local property to a departing congregation. When Christ Church in Plano, Texas – one of the largest Episcopal parishes in the country – voted to leave in 2006, the bishop of Dallas Diocese reached a settlement by which the congregation paid $1.2 million for the property. In other cases, the national church or a congregation has sued to hold onto the land and real estate.

In California, the breakaway St. James Church in Newport Beach won in county court, but later lost on appeal. The case has been consolidated with several others in the state and is now before the California Supreme Court. That court will resolve differences in how lower courts reviewed the cases.

US Supreme Court rulings of the past permit a court to choose between two alternative approaches in making such decisions: (1) defer to the hierarchy, if the congregation belongs to a hierarchical church; or (2) apply neutral legal principles in examining church documents.

Cases are pending in other states.

The church confronts another thicket of difficulty: Two entire dioceses are seeking to pull out, taking their parishes and assets with them.

In December 2007, the Diocese of San Joaquin in central California voted to split off and align itself with the conservative Anglican leadership of the Southern Cone, based in Argentina. The Episcopal House of Bishops voted to remove the diocesan bishop and replace him with another. The archbishop of the Southern Cone insists they cannot do so because he is no longer under their jurisdiction. The church is suing its former bishop and seeking to have assets frozen.

The Diocese of Pittsburgh is expected to vote this fall on a similar "realignment." Bishop Robert Duncan, a key leader among US traditionalists, has formed a new corporation with the same diocese name outside the Episcopal Church. The church says it is not possible for a parish or diocese to leave, only individuals.

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