All Saints Parish v. Protestant Episcopal Church

Decision Date23 April 2004
Citation595 S.E.2d 253,358 S.C. 209
CourtSouth Carolina Supreme Court

Benj. Allston Moore, Jr., Julius H. Hines and Coming B. Gibbs, Jr., all of Charleston, for Appellants.

Attorney General Henry D. McMaster, Chief Deputy Attorney General John W. McIntosh, Deputy Attorney Treva Ashworth, Senior Assistant Attorney General C. Havird Jones, Jr., all of Columbia; Fred B. Newby and Henrietta U. Golding, both of Myrtle Beach, for Respondents.

HOWARD, J. STILWELL and KITTREDGE, JJ., concur.

HOWARD, J.:

This is a suit involving All Saints Parish, Waccamaw ("the Parish"), the Protestant Episcopal Church in the Diocese of South Carolina ("the Diocese"), the Protestant Episcopal Church in the United States of America ("the National Church"), and the descendants of the trustees ("the Does") to determine who owns real and personal property located on Pawley's Island, South Carolina.

In 1745, a trust was created for the "Inhabitants On Waccamaw Neck for the Use of a Chapple or Church for divine worship of the Church of England established by Law." The trust was not recorded until 1767, the same year the Parish was recognized by the colonial government. During the next 100 years, the Parish became affiliated with the Diocese and the National Church.

In September 2000, after an ecclesiastical dispute arose between the Parish, the Diocese, and the National Church, the Bishop of the Diocese filed a notice with the Register of Deeds in Georgetown County, stating the Diocese and the National Church held an interest in the property by means of church canons. The Parish filed suit to have the statement removed from the deed book and to have the circuit court declare the Parish to be the sole owner of all real and personal property.

Because of the existence of the trust deed, the circuit court appointed a guardian ad litem to represent any interest the Does might have in the property. The Does moved for partial summary judgment, alleging they owned legal title to the real property. Based on the Parish's affiliation with the Diocese and the National Church, the Diocese and the National Church claimed an interest in the property by means of the Statute of Uses, adverse possession, laches, and staleness. The circuit court ruled for the Does on the motion for summary judgment, finding the Does held legal title to the real property. The Diocese and the National Church appeal. We vacate in part, reverse in part, and remand.

FACTUAL/PROCEDURAL BACKGROUND

The property at issue in this case is located in Georgetown County, in an area known as the Waccamaw Neck region. In 1745, Percival Pawley and his wife conveyed the property 1 to two trustees, George Pawley and William Poole, "in Trust For The Inhabitants On Waccamaw Neck for the Use of a Chapple or Church for divine worship of the Church of England established by Law."

In 1767, the General Assembly passed an act creating the Parish in the "Waccamaw Neck" region and appointing seven men to serve as commissioners for the Parish. 2See Act No. 961 of May 23, 1767, 4 Stat. 266. That same year, the 1745 trust deed was recorded in Charleston County.

Although the charter was renewed on several occasions, 3 in 1902 the Parish became concerned that its charter had "probably long since expired," vesting its property with the Diocese. 4 To remedy this situation, the Chancellor of the Diocese suggested the Parish apply to the South Carolina Secretary of State for a corporate charter and request a quitclaim deed from the Diocese. Later that same year, the Parish received its certificate of incorporation from the Secretary of State. In 1903, the trustees of the Diocese executed a quitclaim deed that relinquished title of the property to the Parish.

Subsequent to the recording of this deed, the Parish leased parts of the property for uses not authorized by the trust and mortgaged the property. 5

In September 2000, after an ecclesiastical dispute arose involving the Parish, the Diocese, and the National Church, the Bishop of the Diocese issued a notice setting forth the canons of the Diocese and the National Church that limit the alienation and encumbrance of church property. This notice was recorded in the public records of Georgetown County.

In response to the recording of this notice, the Parish filed a complaint in October 2000, seeking a removal of the notice from the deed book and a declaration that it owned the real and personal property located on Pawley's Island. The Diocese and the National Church answered and counterclaimed, alleging the property was owned by the Parish subject to the canons of the Diocese and the National Church.

The Parish requested the court appoint a guardian ad litem to represent the interests of John and Jane Doe, the representatives of the descendants to the original trustees of the 1745 trust.

After the circuit court appointed a guardian ad litem to represent the Does, the Does petitioned for partial summary judgment on the issue of the ownership of the real property, arguing they were the sole owners of the real property. Thereafter, the Parish aligned itself with the Does' position. 6

At the hearing, the Diocese and the National Church defended against the Does' claim, 7 maintaining the position that the Parish owned the real property and they owned an interest in any property owned by the Parish.

After hearing extensive argument on the Does' motion for summary judgment, the circuit court concluded the language contained in the 1745 trust deed was clear and unambiguous and therefore refused to consider parol evidence to explain the terms in the trust deed. The circuit court granted the Does' motion for partial summary judgment, ruling "the 1745 Deed created an active valid and binding charitable trust and legal title to the Subject Property is held by the common law heirs of George Pawley represented by John Doe and Jane Doe, and the equitable title is held by the inhabitants of the Waccamaw Neck as the Trust beneficiaries." In making its ruling, the circuit court determined: 1) the Diocese and the National Church did not have standing to assert Statute of Uses, adverse possession, laches, and staleness; 2) the Statute of Uses did not execute the trust; 3) the trust did not fail when the Church of England ceased to be recognized in the United States; 4) the Parish did not acquire the property by adverse possession; 5) the Does' claim was not barred by laches; 6) the Does' claim was not barred by staleness; 7) the Diocese and the National Church were "at best, incidental beneficiaries" to the trust; and 8) the court did not have subject matter jurisdiction to determine the ownership of the personal property. The Diocese and the National Church appeal.

ISSUES PRESENTED

1. Did the circuit court err by holding the Diocese and the National Church did not have standing to assert Statute of Uses, adverse possession, laches, and staleness?

2. Did the circuit court err by ruling on summary judgment that the Statute of Uses did not execute the trust?

3. Did the circuit court err by ruling on summary judgment that the trust did not fail when the Church of England ceased to be recognized in the United States?

4. Did the circuit court err by granting summary judgment to the Does on the claim of adverse possession?

5. Did the circuit court err by granting summary judgment to the Does on the claim of laches?

6. Did the circuit court err by granting summary judgment to the Does on the claim of staleness?

7. Did the circuit court lack subject matter jurisdiction to declare the Diocese and the National Church to be incidental beneficiaries of the trust?

8. Did the circuit court err by declaring it did not have subject matter jurisdiction to determine the ownership of the personal property?

LAW/ANALYSIS

I. Standing

The Diocese and the National Church argue the circuit court erred by holding they did not have standing to assert Statute of Uses, adverse possession, laches, and staleness. We agree.

A party must have a personal stake or interest in the subject matter of the lawsuit to have standing. Anchor Points v. Shoals Sewer, 308 S.C. 422, 428, 418 S.E.2d 546, 549 (1992) (holding a party has standing to sue if the party has "a real, material, or substantial interest in the subject matter of the action, as opposed to . . . only a nominal or technical interest in the action"); Duke Power v. South Carolina Pub. Serv. Comm'n, 284 S.C. 81, 96, 326 S.E.2d 395, 404 (1985) ("To have standing to present a case before the courts of this State, a...

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