740 S.E.2d 530
Va.2013Background
- Falls Church dispute over ownership of church property between TEC/Diocese and CANA congregations; case follows Truro Church precedents; 1836 joined TEC/Diocese; 2006 disaffiliation by Falls Church; TEC/Diocese claimed trust and requested conveyance; trial court applied neutral principles of law to deeds, canons, and dealings; Dennis Canon and 57-7.1 interact with property ownership; court found constructive trust but remanded on certain personal-property relief; majority reverses in part and affirms in part on remand guidance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Code § 57-7.1 changed Virginia’s denominational trust policy | Falls Church argues 57-7.1 vindicates trusts for hierarchical churches | TEC/Diocese contend 57-7.1 broadens denominational trusts | Code § 57-7.1 validly permits denominational trusts (erred by trial court) |
| Whether Dennis Canon creates an express or constructive trust | Falls Church relies on Dennis Canon to claim express trust | TEC/Diocese argue Dennis Canon codifies existing fiduciary relationship | Constructive trust established under Dennis Canon; express trust ineffective under former law |
| Whether neutral principles and governance documents establish fiduciary relationship | Falls Church asserts no fiduciary burden on local congregation | Diocese/TEC show mutual assent and governance controls | Fiduciary relationship found; Falls Church breached by disaffiliation violating duties |
| Appropriate demarcation point for personal-property and relief | Date of demarcation improperly after disaffiliation | Court had discretion on demarcation point | Remand on personal-property relief using the disaffiliation vote as the demarcation point |
Key Cases Cited
- Reid v. Gholson, 229 Va. 179 (Va. 1985) (neutral principles and church-property frameworks common in Virginia)
- Jones v. Wolf, 443 U.S. 595 (U.S. 1979) (neutral principles approach allowed if no doctrinal inquiry)
- Green v. Lewis, 221 Va. 547 (Va. 1980) (trust/ownership analysis limited to statutes, deed language, church constitution)
- Norfolk Presbytery v. Bollinger, 214 Va. 500 (Va. 1974) (denominational trusts and local congregation ownership framework)