Action against St. James the Less in East Falls
follows failed efforts to resolve differences

13 August 2001

Philadelphia, PA

The Episcopal Diocese of Pennsylvania has turned to a course of legal action to resolve a dispute with one of its parishes that is seeking to remove church property from the diocese after its rector and vestry voted to form a separate corporation, and leave the Episcopal Church.

The diocese took action against the Church of St. James the Less in East Falls and the CSJL Foundation with the filing of a petition to show cause in the Orphan's Division of Philadelphia Common Pleas Court on July 26. The filing follows various initiatives which failed to resolve differences and keep the parish in the diocesan church family. Prior to the filing, the diocese had requested that the property be returned voluntarily and expressed willingness to insure an orderly transfer, thereby avoiding any unnecessary disruption to parish programs and services. St. James rejected that request.

The diocese is asking the court to declare null and void St. James' 1997 act of merging the parish into the nonprofit corporation, CSJL Foundation, citing that the entity was created to divert church property to the foundation in the event the parish disengaged from the diocese. St. James voted itself out of the Diocese of Pennsylvania and The Episcopal Church in April, 1999. The diocese also seeks to declare null and void St. James' articles of incorporation, to dissolve the parish corporation, and to vest the property in the Episcopal Church Foundation as Trustee. The Diocese is waiting for St. James to file a response, which is due by September 17. The Court has not yet announced a hearing date.

The diocese's intention is to regain control of the St. James property and endowments, and to recover any property that may have been improperly diverted from the corporation in violation of the fiduciary duties of its officers and directors. It is not seeking to sell the property but to preserve St. James as an Episcopal Church presence in the East Falls community which it serves. That continuation entails worship, pastoral ministry, education and outreach that are aligned with the Episcopal Church, USA and the Diocese of Pennsylvania.

St James' own charter outlines Episcopal Church affiliation

The 1846 charter of incorporation for St. James the Less states that the parish has been formed for the purpose of worship according to the faith and discipline of the Episcopal Church. The charter further states that the church accedes to, recognizes and adopts the constitution, canons, doctrine, discipline and worship of the Diocese of Pennsylvania, and of the Episcopal Church, USA, and acknowledges their authority accordingly. Another provision in the charter prohibits the conveyance of church property without the consent of the Episcopal Church, including a vote by diocesan convention. No such vote has taken place.

The charter was amended in 1919 to include a provision that if the original corporation is dissolved, its property is to be vested in trust for an existing or future congregation of the Episcopal Church in the Diocese of Pennsylvania.

Meanwhile, the current lay leaders of St. James have placed their administrative position in jeopardy by resisting the authority of the Bishop and the Diocese. The charter states that any member who disclaims, or refuses conformity to, the authority of the church shall no longer be a member of the corporation. That individual may not be elected or vote for Vestry persons, and may not hold any office or function in the church or its corporation.

Diferences have historical context; property claim is new

Disagreement over issues and theological questioning is not new to Episcopalians. Long-time members have witnessed a generation or more of change within the church at large. These changes include the updating of policies on divorce and remarriage; the ordination of women to the priesthood, and the subsequent consecration of women bishops; the revision of the Prayer Book, modernizing liturgical language and creating greater congregational participation; and most recently, a willingness to examine the hard questions regarding diversity in human sexuality.

"Many of the changes we have seen have made the Church more open and inclusive. However, they have also caused stress between those who embrace the changes and those who do not," notes the Rev. Glenn Matis, president of the diocesan Standing Committee. "The situation with St. James the Less is new. It is the only parish in this diocese asserting that, when the members leave the Episcopal Church, they can continue to own and control the property -- including any endowments given by their predecessors who donated to an entity that was part of The Episcopal Church.

"In the Episcopal Church structure there is both an expressed and implied responsibility placed upon the current members of a local parish to preserve and strengthen what has been given to them by their predecessors in trust. The current members are stewards of a legacy for use during their time. They are equally responsible for passing that legacy on to the succeeding generation in a form that is true to the intention of its founding," adds Matis.

The Episcopal Diocese of Pennsylvania has more than 60,000 baptized members in 162 congregations throughout the region. Pennsylvania is the fifth-largest Diocese in The Episcopal Church, USA - which is one of 80 provinces in over 160 countries that comprise the Anglican Communion. Headed by the Archbishop of Canterbury, the Communion is one of the largest Christian bodies in the world with some 70 million members. The Diocese of Pennsylvania is considered the birthplace of the Anglican Communion as Philadelphia is where the first autonomous province in communion with the See of Canterbury was established, in 1784.