246 Cal. App. 4th 254
Cal. Ct. App.2016Background
- Diocese of San Joaquin (Diocese) voted (2007) to disaffiliate from the Episcopal Church; Bishop John‑David Schofield led the secession and attempted structural changes to diocesan governing documents and the corporation sole.
- Schofield filed a January 22, 2008 amendment with the California Secretary of State purporting to rename the corporation sole from “The Protestant Episcopal Bishop of San Joaquin” to “The Anglican Bishop of San Joaquin”; the diocesan convention did not authorize that amendment.
- The Episcopal Church suspended and then deposed Schofield; a majority recognized Jerry Lamb as the Episcopal Bishop and Lamb (on April 8, 2008) amended the corporation sole records to reflect the incumbent.
- Schofield executed recorded grant deeds (March–August 2008) attempting to transfer 27 diocesan parcels first to the nonexistent "Anglican" corporation sole and then to the Anglican Diocese Holding Corporation.
- Plaintiffs (Episcopal Church and Diocese) sued to recover the property; after remand from an earlier appellate decision instructing application of neutral principles of law, the trial court found the transfers void and entered judgment for plaintiffs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Illinois Diocese of Quincy decision collaterally estops plaintiffs | Quincy is distinguishable; not binding in California | Quincy should preclude plaintiffs from asserting contrary law | Not estopped: factual and statutory differences and foreign decision do not bind California courts |
| Proper standard: must court apply neutral principles or defer to church polity? | Neutral principles govern property disputes; ecclesiastical facts are off‑limits | Trial court relied on ecclesiastical facts and deference to church adjudication | Court reaffirmed neutral principles rule; trial court erred in relying on timing remark from prior opinion but outcome upheld on neutral analysis |
| Whether diocesan property is held in trust for the national Episcopal Church under Canon I.7.4 | Plaintiffs argued trust or lack of authority made transfers void | Defendants argued diocesan property was not so encumbered and transfers valid | Canon I.7.4 creates an express trust for parishes, not dioceses; no implied trust found; no express trust on diocesan property |
| Validity of Schofield's amendments and deeds (authority to transfer) | Plaintiffs: amendments and deeds invalid because not authorized; transfers made after deposition to nonexistent entity | Defendants: deeds valid or effective to transfer title to holding corporation | Amendment renaming corporation sole was invalid (not authorized by convention); transfers to nonexistent entity were void; title remained with Protestant Episcopal Bishop and judgment for plaintiffs affirmed |
Key Cases Cited
- Schofield v. Superior Court, 190 Cal.App.4th 154 (Cal. Ct. App. 2010) (prior appellate ruling that ecclesiastical facts are nonjusticiable and remand to apply neutral principles to property issues)
- Episcopal Church Cases, 45 Cal.4th 467 (Cal. 2009) (framework: neutral principles of law for church property disputes; deference to ecclesiastical determinations on doctrine)
- New v. Kroeger, 167 Cal.App.4th 800 (Cal. Ct. App. 2008) (describing Episcopal Church hierarchical structure and diocesan accession requirements)
- Lucido v. Superior Court, 51 Cal.3d 335 (Cal. 1990) (elements and limits of collateral estoppel)
- Berry v. Society of Saint Pius X, 69 Cal.App.4th 354 (Cal. Ct. App. 1999) (corporation sole principles; amendments to articles of incorporation require organizational authorization)
- County of San Luis Obispo v. Ashurst, 146 Cal.App.3d 380 (Cal. Ct. App. 1983) (corporation sole preserves title in office, not person)
- Protestant Episcopal Church v. Barker, 115 Cal.App.3d 599 (Cal. Ct. App. 1981) (courts will not imply trusts that force resolution of ecclesiastical disputes)