L.A. Diocese Denied Attorney Fees in Dispute

From The Living Church:

Posted on: May 19, 2009

Orange County Superior Court Judge Thierry P. Colaw has denied a motion by the Diocese of Los Angeles that would have forced St. James’ Church, Newport Beach, Calif., and its volunteer board of directors to pay the diocese’s attorney fees in its ongoing property dispute.

The diocese had argued that the parish was guilty of “frivolous” conduct under California’s anti-SLAPP (strategic lawsuit against public participation) statute when it entered a special motion to strike the diocese’s initial complaint in 2004. The court initially granted St. James’ motion, but the decision was reversed by an appellate court and upheld by the state supreme court. The parish is awaiting a decision on its appeal to the U.S. Supreme Court. A decision is expected by October.

During the hearing on May 15, the court considered briefs filed by both sides and heard oral argument. While the SLAPP special motion had not previously been used in a church property dispute, the court ruled that it was not frivolous and had been brought in good faith by experienced and well-qualified defense counsel, according to a release distributed by St. James’ Church.

Following its decision in January, the California Supreme Court granted a request from St. James’ and clarified its decision to confirm that the suit was not over and that no decision on the merits of the case had been made. The case has been returned to the lower court for discovery and trial. A hearing has been scheduled for another status conference in September.