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Diocese argues to South Carolina Supreme Court that a lower court decision dismissing outside claims on local church property is consistent with state law and constitutional precedent.

 
COLUMBIA, SC (Sept.  23, 2015) – The Diocese of South Carolina today argued to the state Supreme Court that a judge’s February ruling that the Episcopal Church (TEC) has “no legal, equitable or beneficial interest” in the Diocese’s properties was correct and consistent with South Carolina law.
 
The argument came as the Diocese defended against the latest appeal by TEC, which seeks to seize local property. The denomination’s filings seek control of the Diocese’s 314-acre St. Christopher Camp and Conference Center, the Diocese’s historic identity, its accounts and the properties of 50 congregations that joined the Diocese in disassociating from the denomination in 2012.
 
During today's appeal hearing, the Diocese and TEC would normally have had 20 minutes to present respective arguments, however due to the number of questions, more time was taken because of the vigorous debate.
 
“We are hopeful the Supreme Court will protect the fundamental constitutional right of South Carolina institutions and residents to choose with whom to associate,” said Rev. Jim Lewis, canon to the ordinary of the Diocese. “The lower court made clear that the Diocese could leave TEC and take its property.  We hope this decision concludes the expensive, distracting efforts by TEC to use what feels like endless appeals to delay the inevitable outcome.”
 
 
The History of the Dispute
 
The dispute began when TEC attempted to remove the Rt. Rev. Mark Lawrence as bishop in the fall of 2012.  The Diocese immediately disassociated from TEC, an action affirmed by its Diocesan Convention in November 2012.  At that time 50 of the 72 congregations that made up the Diocese at the time and 80 percent of its members supported the disassociation.
 
TEC immediately attempted to claim the identity of the Diocese, with a rump group calling itself the Steering Committee using the Diocese’s registered service mark and announcing meetings of the diocesan clergy.  In response to the attempted identity theft, the Diocese sought legal protection for the Diocese, its property and that of its congregations. 
 
On Jan. 29, 2013, TEC agreed to a court-imposed temporary injunction preventing its further use of the Diocese’s identity.  The final ruling by Circuit Court Judge Diane Goodstein, which supported the Diocese’s request and rejected TEC claims, made that initial injunction permanent and dismissed the TEC arguments "with prejudice".
 
The Legal Background
 
TEC’s legal arguments can be distilled down to two related propositions.  It claims to be a "hierarchical" church, with complete control of the entire organization located at its very top, much like the Roman Catholic Church, which is led by the pope.  It claims that, as a "hierarchical" church, the establishment clause of the Constitution prevents any court from challenging its ecclesiastical decisions. 
 
Courts in South Carolina, Illinois, California and Texas have repeatedly found there are multiple and significant problems with these assertions in this case.
 
The first is the fact that TEC's organizational structure is irrelevant to this case.   The U.S. Supreme Court has ruled clearly and repeatedly that in property matters like those involved here, courts may decide them using what is known as neutral principles of law, which means the court may not apply special conditions or rules that are different than those it would apply in normal property disputes. 
 
An example of neutral principles was the 2009 decision of the All Saints Parish Waccamaw case by the South Carolina Supreme Court.  The court said judges may decide the matter applying the customary laws of property ownership.  The same principles were applied in the case of the Diocese.
 
Under neutral principles of law, several further crucial legal principles apply.  First, it does not matter if TEC were hierarchical or not. That should be irrelevant under neutral principles of law. Second, TEC has no interest in the real, personal or intellectual property of the Diocese because no trust interest has been established to give it such a claim.  Under South Carolina law, an express trust requires a written declaration signed by the party conveying that interest.  No such document was ever executed by the Diocese or any of its parishes to convey anything to The Episcopal Church. 
 
Similarly, though TEC has asserted trademark infringement as an issue in this case, the only infringement considered at trial was the denomination’s unauthorized use of the Diocesan service marks.  The real issue was who has the rights to control the Diocese, TEC or those who have continuously been its leadership, in unbroken succession, all the way back to 1785.
 

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