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Fight over ownership of remote Newfoundland church now in judge's hands

A judge will now decide whether a Catholic archdiocese in Newfoundland and Labrador has the right to sell a church in a tiny Avalon Peninsula community in order to help compensate victims of sexual abuse.

Episcopal corporation wants to sell Holy Rosary church, but locals have changed the locks

four people chatting in a St. John's courtroom.
St. John's lawyer Kyle Rees, right, speaks with members of the Portugal Cove South Historical Society following a hearing Tuesday morning at the Supreme Court of Newfoundland and Labrador. Also pictured here are, from left, Clarence Molloy, Cynthia Power and George Power. (Terry Roberts/CBC)

A St. John's court room has heard from both sides, and now a judge will decide whether a church at the centre of an ownership battle in a tiny Newfoundland outport can be sold as part of an effort to compensate victims of sexual abuse at the hands of Catholic clergy and members of religious orders such as the Christian Brothers.

It's a case involving the once powerful Roman Catholic Archdiocese of St. John's and its landholding arm, known as an episcopal corporation, and staunchly Catholic residents of a remote town on the southern Avalon Peninsula who believe they are the rightful owners of Holy Rosary church in Portugal Cove South.

The situation escalated eight months ago when members of the Portugal Cove South Historical Corporation, who spearheaded a major church renovation project five years ago, defiantly changed the locks on the building and erected signs on the property to warn away potential buyers.

The standoff generated national headlines, and prompted at least one person to back out of a purchase and sale agreement. The listing price for the property has also dropped significantly to less than $40,000.

The archdiocese is selling off all its assets on the Avalon and Burin peninsulas as part of an historic court-supervised liquidation process in an attempt to satisfy more than $100 million in claims by hundreds of abuse victims.

The process began more than three years ago, and dozens of properties, including churches, have so far been sold.

an aerial view of a catholic church on the southern Avalon Peninsula.
Holy Rosary church in Portugal Cove South underwent a renovation five years ago after local Catholics raised more than $130,000. The church is now for sale as the St. John's archdiocese liquidates assets through a court-supervised insolvency, but members of the congregation have changed the locks in order to keep out prospective buyers. (Danny Arsenault/CBC)

In March, the episcopal corporation applied to the Supreme Court of Newfoundland and Labrador for an injunction to prevent anyone from obstructing its access to Holy Rosary church, and on Tuesday, Justice Garrett A. Handrigan heard arguments from both sides.

"We take no joy in making this application," said lawyer Geoff Spencer, who represents the episcopal corporation.

"This is truly an unfortunate situation for all concerned. There's no winners here."

Spencer accused members of the historical corporation of trespassing and unlawfully interfering with the episcopal corporation's right to sell the church. He said a special statute was created that allows the episcopal corporation to hold legal title over all property used by the archdiocese, and that Holy Rosary is one of three churches connected to Holy Redeemer parish.

Spencer referenced an affidavit signed by Archbishop Peter Hundt that establishes legal title over Holy Rosary dating back to 1956.

"We're not treating this parish any differently than all of the other parishes that have had to sell their churches," said Spencer.

He also equated the actions of the community to taking money away from the victims.

Hiring a lawyer to fight injunction

The historical corporation has argued that a local priest told them years ago that the church belonged to the community, and that it was only after this assurance that they decided to form a historical corporation and raise money to renovate the badly deteriorated building.

But Spencer said a parish priest does not have the authority to transfer ownership of a church, and at no time did the historical corporation seek to clarify the ownership question.

two hands holding keys
These are the new keys to Holy Rosary church in Portugal Cove South, and only a select few people have access to them. (Terry Roberts/CBC)

Faced with court action, meanwhile, the historical corporation organized an online crowdfunding campaign, and raised money to hire lawyer Kyle Rees.

Rees told the court that residents felt they were "given charge" of the church, based on "representations that were made to them" by the priest.

Rees said it appears the community "fell victim to the very thing that has caused this whole process to unfold in the first place. Which is trust and belief in a parish priest."

He also said the historical corporation oversaw the renovation process, and led fundraising efforts that generated more than $130,000.

The episcopal corporation only attempted to reaffirm its ownership of the property after the archdiocese was found liable for the abuse, said Rees, and was forced to liquidate assets in order to satisfy the claims.

The episcopal corporation has argued that allowing the people of Portugal Cove South to interfere with the sale of the church would inspire other communities to do the same, and stunt efforts to raise money for the victims.

But Rees said the Holy Rosary situation is unique because the church is being operated and maintained by an arms-length historical corporation, and not a parish council.

As for fundraising to renovate the church, Spencer said most of the money was raised through grants to the archdiocese from Catholic Missions Canada which totalled roughly $93,000.

"It's clear the [episcopal corporation] played an essential role in fundraising for these repairs," said Spencer. 

In addition to an injunction, the episcopal corporation is also asking for its legal costs related to the Holy Rosary matter be covered by the historical corporation.

The hearing concluded without a decision from Handrigan, and he did not provide a timeline for his decision.

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ABOUT THE AUTHOR

Terry Roberts is a reporter with CBC Newfoundland and Labrador, based in St. John’s. He previously worked for the Telegram, the Compass and the Northern Pen newspapers during a career that began in 1991. He can be reached by email at Terry.Roberts@cbc.ca.