Portugal Cove South Catholics hire lawyer in bid to fight sale of church

A date for a court battle over the fate of a small church in a staunchly Catholic community on the southern Avalon Peninsula has now been set.

A hearing is scheduled for May 6 at the Supreme Court of Newfoundland and Labrador, with Justice Garrett A. Handrigan to hear arguments over whether he should grant an injunction that prohibits anyone from interfering with access to Holy Rosary church in Portugal Cove South.

The episcopal corporation of the Roman Catholic Archdiocese of St. John's, which is under court-supervised creditor protection, is determined to sell the church, but locals have changed the locks and issued loud warnings to anyone thinking about buying the property.

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Up to last month, the archdiocese had sold 111 properties in a historic shedding of assets for the once-powerful Catholic institution, including churches and parish halls, all over the Avalon and Burin peninsulas.

But a lawyer for the episcopal corporation, Geoffrey Spencer, said the sales process in Portugal Cove South is being "hindered and obstructed" by members of the Portugal Cove South Historical Corporation. The episcopal corporation is also concerned that the standoff in Portugal Cove South may inspire similar pushback in other communities where Catholic properties are being sold.

"All parties are working hard to sell the remaining properties. To wind up the (Companies' Creditors Arrangement Act) proceedings. We would like to bring these proceedings to an end," Spencer told Handrigan on Friday.

Late last month, the episcopal corporation applied to the court for an injunction against the historical corporation, and was hoping to have the matter dealt with by Handrigan during Friday's proceedings.

Lawyers for the victims and the firm hired to oversee the insolvency process support the application for an injunction.

But earlier this week, the historical corporation, flush with cash following an online crowdfunding blitz last year, hired lawyer Kyle Rees to help them fight the injunction

Rees asked the court for more time to prepare his arguments. Handrigan agreed, saying he wanted to hear both sides.

Rees said he will argue that the episcopal corporation has not established proper title over the property, and that the historical corporation has an "equitable interest" in the church property after it raised roughly $134,000 five years ago to pay for a major renovation of the church.

The church was originally listed for $75,000, but is now on the market for $37,000.

Spencer said the episcopal corporation has proved ownership and that there's "no validity to the arguments that have been raised" by the historical corporation.

According to court documents, two prospective buyers have walked away from a purchase agreement because of the frosty mood in the community.

Last fall, members of the corporation changed the locks on Holy Rosary following what was thought to be the last mass, though several church services have since been held in the community of less then 80 homes, many of which are unoccupied or are seasonal residences. 

"We are pleased to be given a chance to be heard," Cynthia Power, a member of the historical corporation, said following Friday's court proceedings.

In many parishes, churches have been sold to third-party buyers who are affiliated with or supportive or future Catholic operations. When asked if the historical corporation would consider buying Holy Rosary, Power said that would have to be a decision of the historical corporation's board and "I can't speak to that."

When asked how far they plan to take their fight to preserve the church, Power said the historical corporation's members will "take it day by day."

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