Friday, January 5, 2018

Outline Of A Possible Settlement

I ended my last post with the idea that the parties in the Third Lawsuits would be best off reaching a settlement that would conclude the current cycle of litigation and leave everyone happy. An idea of how this might be done is beginning to occur to me, based on the general outline of how the Roman Catholic Diocese of Orange acquired the former Crystal Cathedral.

The vestry does have a continuing capacity to delay indefinitely the execution of the appeals court's decision, based on the fact that the existing vestry continues to be recognized as the legal vestry, and there is no way under the parish bylaws that the ACA can remove vestry members or appoint new ones. Resolution of this problem would take years of additional litigation, and throughout that time, the ACA would not have clear title, even if they were able to evict Fr Kelley and the vestry again.

Mrs Bush will turn 88 this year. Many other figures in the case are at retirement age, including Bp Marsh of the ACA. Nobody currently is in a position to pursue years of additional uncertainty.

So it's in the ACA's interest to get Fr Kelley and the vestry to go away happy. A very rough approach would be the one I suggested yesterday, envisioning a multimillion-dollar disposition of the property, with the great bulk of the proceeds going to the ACA. Remember that the value of the Della Robbia altarpiece alone is potentially in eight figures. However, the final sale of all the assets would be years in the future.

But just a promise of money from the sale (in the form of severance packages for Fr Kelley and other parish employees and potential charitable contributions to other entities) would not be sufficient to make the vestry and Fr Kelley go away happy.

But here's a solution, along the lines of how the former Crystal Cathedral was sold:

  • The legal process is begun whereby the existing vestry starts to dissolve the St Mary of the Angels corporation. This avoids any question as to who has the ability to do so.
  • The property, including the Della Robbia, is fully appraised.
  • An agreement is reached whereby the vestry and Fr Kelley retain occupancy of the premises during this interim period. The vestry continues to receive the rent from the commercial property. Fr Kelley and other employees continue to be paid. Books subject to audit as specified.
  • The parish functions as a community church under the authority of Abp Hepworth during the interim period.
  • A set of generous severance packages for Fr Kelley and all other eligible parish employees, to be made from the eventual proceeds from sale of the property, is established.
  • Payments to attorneys on both sides, to be made from the eventual proceeds from sale of the property, are established.
  • At the time of the final sale and disposition, Fr Kelley and the vestry move out.
  • At that time, the ACA receives clear title. The final dissolution of the corporation would be roughly simultaneous.
  • The proceeds of the sale are distributed as specified during negotiations.
It's a thought, anyhow. But it seems to me that the cooperation of the existing vestry will be key to any sort of satisfactory resolution that would avoid years of additional litigation.