Breakaway church drops countersuit

St. James withdraws claim that diocese breached contract after church’s secession in 2004.St. James Church in Newport Beach has withdrawn its breach of contract lawsuit against the Episcopal Diocese of Los Angeles, officials said Friday.

An attorney for the diocese said that he was pleased but that his client will not drop an appeal in a separate case against St. James.

The Newport church was one of three -- the others are All Saints’ in Long Beach and St. David’s in North Hollywood -- that separated from the Episcopal Church of the United States and the Los Angeles diocese in 2004 over theological differences.

St. James leaders and congregants considered the Episcopal church too liberal and ambiguous on some aspects of the Bible.

When the churches seceded, the Episcopal Diocese of Los Angeles filed a suit against all three, claiming that they had breached their fiduciary duties and that the diocese owns the churches’ properties, since it consecrated them. St. James field a countersuit.

On Jan. 13, Orange County Superior Court Judge David Velasquez ruled that the Episcopal Church of the United State has no claim to the breakaway churches’ properties.

In light of that and several earlier rulings in the churches’ favor, St. James leaders on Thursday ended their countersuit against the Los Angeles diocese, Senior Pastor Praveen Bunyan said.

“Bottom line is we do not want to prolong this any further,” he said. “We have in good faith withdrawn this because we already have the victory at this point, and I hope in goodwill we can all move forward.”

Los Angeles diocese attorney John Shiner said diocese officials are pleased and thought St. James’ suit was without merit. The diocese will continue to pursue an appeal of the Jan. 13 decision, he said.

“We believe that the canons and constitutions of the church as well as the law absolutely confirm that the property in question belongs to the diocese,” Shiner said.

St. James attorney Eric Sohlgren said the church has reserved the right to refile the suit later if circumstances change. Bunyan said he hopes the diocese will ultimately decide to abandon its appeal.