Syracuse Post Standard: Lawsuit can move forward

Saturday, September 02, 2006
By Jim O'Hara
Staff writer

The Episcopal Diocese of Central New York can proceed with its lawsuit against dissident St. Andrew's Church and its rector but not against the individual members of the church vestry, state Supreme Court Justice James Murphy ruled Friday.

Murphy also dismissed the diocese's lawsuit against St. Matthias Society Ltd., the nonprofit the diocese claims is benefiting from assets being diverted from St. Andrew's.

Additionally, the judge rejected a request by the diocese for an injunction against St. Andrew's that sought to prevent the expenditure of assets without diocesan approval. But Murphy rejected the church's request to dismiss the diocese's lawsuit altogether.
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The judge Friday said it appeared "prolonged litigation" was ahead for the parties. But he offered his assistance as a mediator, noting he had some suggestions.

The rift between the diocese and the church in the 5000 block of South Salina Street in the Valley section of Syracuse stems from the parish leaders' rejection of the denomination's policy on homosexuality. But the court fight is over actual ownership of the church property itself.

The diocese filed a lawsuit in July seeking a financial accounting from the church and court recognition that the law grants the diocese title to all of the church property. The diocese claims the leadership at St. Andrew's did not have legal authority to secede from the overall Episcopal Church and take the actual church building with it.

St. Andrew's leaders' position is that the diocese and the Episcopal Church USA have betrayed traditional church values and that the diocese has no legal right to the church building, rectory or parish assets.

On Friday, Murphy ruled the diocese could not pursue the lawsuit against the individual members of the vestry running St. Andrew's absent some allegations of specific individual wrongdoing. He also concluded there were no grounds to issue an injunction because the diocese would be able to collect damages for any losses in the event it wins its suit.

But he left Robert Hackendorf as a defendant in the case because the diocese is seeking to oust him as the church leader and evict him from the church rectory.