South Carolina Supreme Court issues final decision on Episcopal church real estate

Standard

“This case is over” according to the court

Church schisms are tough in many ways, and the real estate issues are no exception. This week, the South Carolina Supreme Court filed an opinion* that it says finally resolves the real estate issues. In other words, the Court has decided who owns the real estate of the churches in dispute.

The dispute began in 2010 when the Lower Diocese of South Carolina, after doctrinal disputes, dissociated from the National Episcopal Church. The parties have been involved in extensive litigation in state and federal courts for the twelve years that have followed the dissociation. I am glad that I don’t have to figure out the doctrinal issues. The real estate issues are thorny enough.

My best advice to practicing real estate lawyers: when you are asked to close any transaction involving Episcopal church property, call your intelligent and friendly title insurance underwriter. In fact, call your underwriter when you deal with any church real estate transaction. They will stay current on the real estate issues involving churches.

The Court based its decision on which of the parishes adopted the national church’s “Dennis Cannon”. This church law provides that all real and personal property owned by a parish is held in trust for the national church.  The actions taken by each church with regard to the Dennis Cannon were examined.

Without belaboring the analysis, the following parishes will maintain their properties:

  • Trinity Episcopal Church, Pinopolis
  • The Protestant Episcopal Church of the Parish of Saint Philip, Charleston
  • The Protestant Episcopal Church of the Parish of Saint Michael, Charleston
  • Church of the Cross, Inc., Bluffton
  • The Church of the Epiphany, Eutawville
  • The Vestry and Church Warden of the Episcopal Church of the Parish of St. Helena, Beaufort
  • Christ St. Paul’s Episcopal Church, Conway
  • The Church of the Resurrection, Surfside
  • The Church of St. Luke and St. Paul, Radcliffeboro
  • The Vestry and Church Wardens of St. Paul’s Church, Summerville
  • Trinity Episcopal Church, Edisto Island
  • St. Paul’s Episcopal Church of Bennettsville, Inc.
  • All Saints Protestant Episcopal Church, Inc., Florence
  • The Church of Our Savior of the Diocese of South Carolina, John’s Island
  • The Church of the Redeemer, Orangeburg

The properties of the following parishes are held in trust for the National Church:

  • The Church of the Good Shepherd, Charleston
  • The Church of the Holy Comforter, Sumter
  • St. Bartholomew’s Episcopal Church, Hartsville
  • The Vestry and Church Wardens of the Episcopal Church of the Parish of St John’s, John’s Island
  • The Vestry and Church Wardens of St. Jude’s Church of Walterboro
  • Saint Luke’s Church, Hilton Head
  • St. David’s Church, Cheraw
  • The Vestry and Church Wardens of the Parish of St. Matthew (St. Matthews, Fort Motte)
  • The Vestries and Church Wardens of the Parish of St. Andrew (Old St. Andrew’s, Charleston)
  • The Church of the Holy Cross, Stateburg
  • Trinity Church of Myrtle Beach
  • Holy Trinity Episcopal Church, Charleston
  • Vestry and Church Wardens of the Episcopal Church of the Parish of Christ Church, Mount Pleasant
  • St. James’ Church, James Island

I feel for all the parties involved. I am a United Methodist, and our international church authorities have been examining similar issues in recent years. We may see more church schism opinions in South Carolina and elsewhere. Stay in touch with your friendly title insurance company underwriter!

*The Protestant Episcopal Church in the Diocese of South Carolina v. The Episcopal Church, South Carolina Supreme Court Opinion 28095 (April 20, 2022).