After a two-hour hearing at Calhoun County Courthouse in St. Matthews, SC, this morning, First Circuit Court Judge Edgar Dickson ordered all parties—The Episcopal Church in South Carolina (TECSC) and The Episcopal Church, along with a group that broke away from the Church in 2012—to enter into mediation in the ongoing dispute over enforcing the South Carolina Supreme Court’s 2017 decision on diocesan and parish properties.

The hearing was initially in regard to a lawsuit filed against TECSC and The Episcopal Church by the breakaway group that has come to be known as the Betterments Act case. It was filed in November 2017 and cites the little-used Betterments Act statute to seek compensation from TECSC and The Episcopal Church for the cost of improvements made to the properties over the years. That suit followed a decision by the South Carolina Supreme Court on August 2, 2017 ruling that all diocesan property and the property of 29 parishes is held in trust for The Episcopal Church and TECSC.

During the hearing, attorneys for TECSC and The Episcopal Church argued the grounds for dismissal of the case, per their motion filed on December 15, 2017. During the course of the arguments, Judge Dickson asked several questions on issues surrounding ownership and trusteeship of the involved properties.

In response, the attorneys for the breakaway group primarily argued that the Supreme Court decision of August 2, 2017 does not, in their view, specifically identify the parishes that directly acceded to the Dennis Canon. That canon requires that church properties be held in trust on behalf of the diocese, to be used for the benefit of the Episcopal Church.

The attorneys for the breakaway group argued that the court still needs to determine which parishes acceded to the Dennis Canon. Attorneys for TECSC and The Episcopal Church countered, noting that the Supreme Court already made that determination, identifying 29 parishes that acceded and are bound by the Dennis Canon. Both sides agreed that there were seven or eight parishes that did not accede to the canon, and therefore, those parishes are not a part of the underlying case.

After both sides had a chance to present their positions to the court, Judge Dickson ordered the parties to return to mediation, even though both sides had agreed at a point earlier in the hearing that previous efforts toward mediation have not proved effective. From October 2017 to January 2018, the parties held four days of mediation ordered by U.S. District Judge Richard Gergel in connection with a separate federal lawsuit. No agreements resulted from that mediation, which was conducted by Senior U.S. District Judge Joseph F. Anderson, Jr. in Columbia, SC.

Judge Dickson noted that mediation is now mandatory in circuit court, and it is his belief that because there are “problems of the court deciding church issues,” mediation would be the best way to resolve the “competing interests in this case.” He advised that his mediation order is “global and complete” for all cases before him involving the associated parties (other than the seven or eight parishes that all parties agreed are no longer involved).

All parties agreed to select a new mediator, and the judge encouraged them to work together to select someone who is agreeable to both sides. Overall, the attorneys for TECSC were pleased with the tone of the hearing. “We have to  leave open the possibility that some things could change, and mediation would be effective,” said Chancellor Thomas Tisdale, Jr.

No timetable was set for the next steps. Judge Dickson did not rule on the motion to dismiss the Betterments Act case, nor did he grant a stay (as requested by the breakaway group) that would put the case on hold until mediation is complete.

​According to attorneys, mediation is best understood as a conversation, with a mediator directing and facilitating. The only way mediation results in any action is if all parties agree to a resolution in writing. ​

Late yesterday, on Thursday, July 18, 2019, The Episcopal Church in South Carolina (TECSC) filed multiple motions with the U.S. District Court in Charleston asking the federal court to dismiss motions and counterclaims filed by the Church Insurance Company of Vermont (CIC-VT). In the initial filing on June 11, 2019, TECSC argued that CIC-VT acted in bad faith and secretly funded TECSC’s disaffiliated adversaries in litigation against TECSC. (See previous blog post here.)

CIC-VT's motion for declaratory judgment, filed three days later on June 14, 2019, was "attempting to justify the decision it already made to fund TECSC’s disaffiliated adversaries in litigation against TECSC,” according to the memorandum of law filed July 18 by TECSC. In addition to the motion for declaratory judgment, CIC-VT also filed a counterclaim and third-party complaint in the bad faith action, as well as motions for joinder and consolidation. (See previous blog post here.)

​The memorandum of law filed July 18, 2019, explains why CIC-VT’s declaratory claim, pled in both actions, should be dismissed on the pleadings as a matter of law and equity, and also why CIC-VT’s motions for consolidation and joinder should be denied as “moot and futile.”
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According to TECSC's memorandum, as early as 2013, CIC-VT received claims from the disaffiliated adversaries, and initially denied the coverage. In 2015, those adversaries sued CIC-VT for breach of contract and bad faith. In defending against that suit, TECSC notes in the July 18 filing, "CIC-VT took the correct position that 'only affiliates of The Episcopal Church are eligible for coverage from CIC-VT.'" 

But instead of seeking a declaratory judgment to uphold that position, "CIC-VT chose to avoid further litigation of the issues and quickly settle that action,” the memorandum says, and subsequently provided insurance coverage to the disaffiliated adversaries to fund their litigation against TECSC.

The memorandum notes that in its recent filings, CIC-VT makes no mention of these previous proceedings in federal court, and says the omission "intentionally misleads this Court,” which is one of multiple arguments to support the case for dismissal.  The filing further asserts that CIC-VT cannot now present the issue of coverage for the court to decide "as if it were an issue for which CIC-VT has taken no position.”

The filing also notes, as additional grounds to support the dismissal, that CIC-VT is not authorized or licensed to transact business or sell insurance in South Carolina, as is required by state law. As a result, the company “should not have filed and cannot maintain any action” in the state.

After laying out the many reasons supporting dismissal, the filing notes that CIC-VT’s motions for consolidation and joinder should be denied as “moot and futile.”  In addition, it notes that the denial is appropriate because “the addition of numerous parties to the bad faith action initiated by TECSC against CIC-VT is unnecessary and would unduly complicate and prolong that case and burden and prejudice TECSC.”

About The Episcopal Church in South Carolina

​The Episcopal Church in South Carolina (TECSC)is the local diocese in the eastern half of South Carolina part of The Episcopal Church and the Anglican Communion. For the latest on TECSC, visit episcopalchurchsc.org or like us on Facebook.

Circuit Judge Edgar W. Dickson has scheduled a hearing on Thursday, July 25 at 9:30 am concerning a lawsuit filed against The Episcopal Church in South Carolina (TECSC) and The Episcopal Church by a breakaway group.

The hearing was announced in an email to attorneys this afternoon regarding a suit that has come to be known as the Betterments Act case. It will take place at the Calhoun County Courthouse in St. Matthews, in the First Judicial Circuit.

The Episcopal parties have asked the judge to dismiss the betterments case, filed in November 2017 by a group led by Bishop Mark Lawrence that "disaffiliated" from The Episcopal Church in 2012-2013 and sued seeking to keep church property and assets. The 2017 suit cites the little-used Betterments Act statute to seek compensation from TECSC and The Episcopal Church for the cost of improvements made to the properties over the years. That suit followed a decision by the South Carolina Supreme Court on August 2, 2017 in favor of The Episcopal Church and TECSC.

This is the first hearing that has been scheduled since a court date in March was canceled a few days before it was to occur. Since receiving the Supreme Court's final decision in 2017, the circuit court has held one scheduling conference and one hearing on a motion for "clarification" filed by the disassociated group. 

Bishop Skip Adams has appointed Molly Hamilton as Diocesan Director of Communications effective July 8.

"Molly has strong professional experience in communication as well as knowledge and love of The Episcopal Church," Bishop Adams says. "We are blessed that she will be bringing these gifts to the vital ministry of communication for our Diocese."

As Director of Communications, Molly will serve on the Bishop's staff on a part-time basis. In addition to overseeing the diocesan website, social media presence, newsletters and media relations, the position also provides support for communication efforts for the congregations of the Diocese. 

A 1997 graduate of the College of Charleston with degrees in corporate communications and business administration, Molly also earned a master's in mass communication from the University of South Carolina. She has worked collectively for more than a decade in public relations, corporate communications, marketing, public affairs, digital communications, and media relations; and she took off about 10 years in between to work full time as a stay-at-home mom. 

Molly and her husband, Trey, live with their two sons in James Island near Charleston. They are members of Grace Church Cathedral.

Molly will succeed Holly Votaw, who has served as Diocesan Director of Communications since January 2013. Holly has been working remotely since moving to North Carolina in May, and will continue to provide consultation and support for Molly as needed during the transition. 

Saying it is “confident” that the 1st Circuit Court will act "in an expeditious manner" to resolve the case, the South Carolina Supreme Court has denied a petition from The Episcopal Church in South Carolina (TECSC) and The Episcopal Church that asked the court to order enforcement of the 2017 decision to return control of diocesan property and 29 parish properties to The Episcopal Church and TECSC.

In an order signed June 28, the Supreme Court denied a Petition for Writ of Mandamus that asked it to require Circuit Judge Edgar W. Dickson  to take action on the decision that the high court remitted to Judge Dickson for enforcement nearly 2 years ago.

Because Judge Dickson "is in the process of scheduling hearings on the matters filed in the circuit court, we are confident that (the judge) will resolve the petition to enforce the judgment, as well as any related matters that are pending, in an expeditious manner," the order says.

The order was signed by Chief Justice Donald W. Beatty and Justices John W. Kittredge, John Cannon Few and George C. James Jr. Justice Kaye G. Hearn did not participate.

The disputed properties currently are under the control of a group led by Bishop Mark Lawrence that left The Episcopal Church in 2012 and then sued the church in an attempt to keep the property. 

TECSC and The Episcopal Church filed the Petition for Writ of Mandamus on March 20, noting it was seeking such an "extraordinary remedy" because the delay in enforcing the high court’s decision is continuing to cause harm to the Church and its diocese, TECSC.

To date, the Orangeburg-based court has held one scheduling conference and one hearing on a motion for "clarification" filed by the disassociated group. Another hearing that had been scheduled for March 27 was cancelled a few days beforehand, and the court has not set a new date.
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July 2 update: Judge Dickson has scheduled a hearing for July 25. Read about it here.