Masterson v. the Diocese of Nw. Tex.

• Decision Date: 16 March 2011
• Docket Number: No. 03–10–00015–CV.,03–10–00015–CV.
• Citation: 335 S.W.3d 880
• Parties: Robert MASTERSON, Mark Brown, George Butler, Charles Westbrook, Richey Oliver, Craig Porter, Sharon Weber, June Smith, Rita Baker, Stephanie Peddy, Billy Ruth Hodges, Dallas Christian and The Episcopal Church of the Good Shepherd, Appellants,v.The DIOCESE OF NORTHWEST TEXAS, The Rev. Celia Ellery, Don Griffis and Michael Ryan, Appellees.
• Court: Texas Court of Appeals

335 S.W.3d 880

Robert MASTERSON, Mark Brown, George Butler, Charles Westbrook, Richey Oliver, Craig Porter, Sharon Weber, June Smith, Rita Baker, Stephanie Peddy, Billy Ruth Hodges, Dallas Christian and The Episcopal Church of the Good Shepherd, Appellants,

v.The DIOCESE OF NORTHWEST TEXAS, The Re

v. Celia Ellery, Don Griffis and Michael Ryan, Appellees.

No. 03–10–00015–CV.

Court of Appeals of Texas, Austin.

March 16, 2011.

George S. Finley, Smith Rose Finley PC, San Angelo, for Appellants.Jim Hund, Hund Krier Wilkerson & Wright, PC, Lubbock, for Appellees.Before Chief Justice JONES, Justices HENSON and GOODWIN.

OPINION

J. WOODFIN JONES, Chief Justice.

This appeal arises from a property dispute among parishioners from the Episcopal Church of the Good Shepherd (“Good Shepherd”) in San Angelo, Texas. In 2006, a majority of the Good Shepherd parishioners voted to withdraw Good Shepherd from the Episcopal Church of the United States and the Diocese of Northwest Texas and to reorganize as the Anglican Church of the Good Shepherd affiliated with the Diocese of Uganda, Africa; a minority voted to continue Good Shepherd's affiliation with the Episcopal Church and the Diocese of Northwest Texas (the “Diocese”). The Diocese and the individual appellees, The Rev. Celia Ellery, Don Griffis, and Michael Ryan (collectively, the “Continuing Parish Leaders”), filed suit for declaratory judgment to establish their rights to continued possession and control over the church property, which was claimed by appellants, who are members of the withdrawing group (collectively, the “Former Parish Leaders”).¹ The Former Parish Leaders counterclaimed with a suit to quiet title and request for declaratory judgment that they were entitled to possession and use of the church property. The Diocese and Continuing Parish Leaders moved for summary judgment, which the trial court granted. The Former Parish Leaders appeal, arguing primarily that the trial court erred in failing to properly apply “neutral principles” of law to resolve the dispute. We will affirm the trial court's judgment.

FACTUAL AND PROCEDURAL BACKGROUND

The Diocese is one of 111 regional dioceses of the Episcopal Church, responsible for carrying out the Episcopal Church's ministry and mission within a geographical area that includes Good Shepherd. In 1961, three members of the Episcopal Church purchased a tract of land in San Angelo on which Good Shepherd was later built. The following year, they donated the property to the Trustees of the Diocese for the purpose of establishing a mission church. In September 1965, Good Shepherd submitted an “Application for Organization of Mission,” in which it promised to “establish and sustain the regular worship of the [Episcopal] Church, to promote its purpose and influence” and to “conform[ ] to the Constitution and Canons of the General Convention and the Diocese of Northwest Texas.” Thereafter, Good Shepherd participated in the annual Conventions for the Episcopal Diocese of Northwest Texas each year from its formation until the present dispute arose.

In 1974, after the Good Shepherd mission was incorporated, it achieved parish status and was accepted into union with the Diocese.² The same year, the first vestry of Good Shepherd filed articles of incorporation as the “Episcopal Church of the Good Shepherd,” pledging to hold office in accordance with the Episcopal Church Canons. Thereafter, Good Shepherd enacted Bylaws, which provide that Good Shepherd is

a constituent part of the Diocese of Northwest Texas and of the Protestant Episcopal Church in the United States of America. The parish accedes to, recognizes, and adopts the General Constitution and Canons of that Church, and the Constitution and Canons of the Diocese of Northwest Texas and acknowledges the authority of the same.³

The Bylaws further state that

[t]he Rector, Wardens and Vestry of the Church of the Good Shepherd are hereby constituted Trustees Corporate and Politic. If the Parish be without a Rector, all rights respecting title to properties of the Parish shall be vested in the Wardens and Vestry with the condition that any change thereof be made with the knowledge and written consent of the then ecclesiastical authority of the Diocese.

In 1982, the Board of Trustees for the Diocese conveyed the property and improvements thereon to Good Shepherd by general warranty deed for ten dollars. Title to the land was taken in the name of the “Good Shepherd Episcopal Church.” The land conveyed by the 1982 deed, along with an additional tract acquired in 2005 and the personal property of Good Shepherd, constitute the church property subject to the instant dispute.

In November 2006, the vestry of Good Shepherd recommended certain resolutions that sought to withdraw Good Shepherd from the Episcopal Church and the Diocese and to begin worship as a new, distinct, and independent church. The resolutions purported to change the name of Good Shepherd to the “Anglican Church of the Good Shepherd,” to dissolve its union with the Episcopal Church and with the Diocese, and to revoke any trusts previously imposed on any property of Good Shepherd in favor of the Episcopal Church, the Diocese, or the Northwest Episcopal Board of Trustees. A majority of Good Shepherd's members voted to adopt the resolutions by a margin of 53 to 30. In response, Wallace Ohl, Bishop of the Episcopal Church in the Diocese of Northwest Texas, reached out to the parishioners who wished to remain with the Episcopal Church. Bishop Ohl requested that those parishioners who wished to leave the Episcopal Church depart the premises by January 5, 2007, and informed the Former Parish Leaders that Good Shepherd's real and personal property was held in trust for the Diocese for the benefit of the Episcopal Church and those members of Good Shepherd who remained faithful. Since then, the continuing parishioners of Good Shepherd have elected a new vestry, which has been recognized by Bishop Ohl and the Diocese as the true and proper representative of Good Shepherd. The Reverend Celia Ellery was appointed priest-in-charge, effective January 6, 2007.

When the Former Parish Leaders and the parishioners aligned with them refused to vacate the premises in accordance with Bishop Ohl's order, the Diocese and Continuing Parish Leaders filed this suit for declaratory judgment. The Former Parish Leaders filed an answer and counterclaims, seeking to quiet title and have the trial court declare that they, the Anglican Church of the Good Shepherd, were entitled to retain control over the property. The Diocese and Continuing Parish Leaders moved for summary judgment on the grounds that the church property is, as a matter of law, held in trust for the Episcopal Church and the Diocese for those members of Good Shepherd who remain loyal and that, pursuant to Texas law and Episcopal Church Canons, the dissenting members could not unilaterally dissolve the relationship between Good Shepherd and the Diocese and still retain control and use of the property.

The trial court granted the Diocese and Continuing Parish Leaders' motion for summary judgment, declaring that the Former Parish Leaders may not divert, alienate, or use the real or personal property of Good Shepherd, except in furtherance of the mission of the Episcopal Church as provided by and in accordance with the Constitutions and Canons of the Episcopal Church and the Diocese. The court further declared that:

the continuing Parish of the Good Shepherd is identified as and represented by those persons recognized by the Bishop of the Episcopal Diocese of Northwest Texas;

the actions of the Defendants in seeking to withdraw Good Shepherd as a Parish of the Diocese and from the Episcopal Church are void and without effect; and

all real and personal property of the Good Shepherd is held in trust for the Episcopal Church and the Diocese.

The Former Parish Leaders perfected this appeal.

STANDARD OF REVIEW

We review a trial court's grant of summary judgment de novo. Mid–Century Ins. Co. v. Ademaj, 243 S.W.3d 618, 622 (Tex.2007). When reviewing a summary judgment, we take as true all evidence favorable to the nonmovant, and we indulge every reasonable inference and resolve any doubts in the nonmovant's favor. Provident Life & Accident Ins. Co. v. Knott, 128 S.W.3d 211, 215 (Tex.2003). The party moving for a traditional summary judgment bears the burden of showing that no genuine issue of material fact exists and that it is entitled to judgment as a matter of law. Id. at 216.

DISCUSSION

In their first issue, the Former Parish Leaders argue that the trial court erred by failing to resolve the property dispute through the application of “neutral principles of law.” In their second issue, they assert that the trial court erred in rendering summary judgment “that deferred the dispute to a ruling by the Bishop.” Specifically, the Former Parish Leaders contend that this dispute can be resolved simply by interpreting the 1982 general warranty deed in conjunction with constitutional and common law principles. These neutral principles of law, they argue, conclusively establish that control of Good Shepherd vests in its members, that the majority's vote to withdraw was effective and did not require the consent of the Episcopal Church, and that any claim to the property of Good Shepherd by the Diocese on behalf of the Episcopal Church contradicts the terms of the general warranty deed held by Good Shepherd. In order to adequately address these complaints, we will first briefly outline the law governing these types of church-property disputes.

The First Amendment

The First Amendment to the United States Constitution, applicable to the states through the Fourteenth Amendment, Cantwell v. Connecticut, 310 U.S. 296, 303, 60 S.Ct. 900, 84 L.Ed. 1213 (1940), provides that “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof.” U.S. Const....