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S10A0724. KEMP et al. v. NEAL et al.
State: Georgia
Court: Supreme Court
Docket No: S10A0724
Case Date: 11/30/2010
Preview:Final Copy

288 Ga. 324

S10A0724. KEMP et al. v. NEAL et al.

PER CURIAM. This case involves a dispute between appellants, who are the trustees of Williams Chapel African Methodist Episcopal Church, and appellees, who are the national African Methodist Episcopal Church and its officials. The dispute is over the ownership of church property in Screven County where Williams Chapel has held services for years as an AME church. In 2008, however, several members of Williams Chapel sought to terminate the local church's relationship with the national AME church. As a result, the national church and its officials filed a petition to quiet title in the property and for declaratory judgment and injunctive relief.1 After a final hearing, the trial court found that the AME church is a hierarchical church; that Williams Chapel at all times conducted its affairs as a member of the AME Church, Inc.; that, under the church discipline, all real and personal property of local churches is held for the benefit of the national

Four months after the litigation began, the trial court entered a temporary order which required the national church to assume the indebtedness secured by the real property, to pay all debts and bills associated with the local church, and to maintain and pay for insurance on the church van. Williams Chapel was required to remit $380 monthly to the national church in exchange for use of the local church building and van.

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AME church; that no deed exists as to the real property of Williams Chapel;2 and that the local church apparently had had permissive use of the property for over 70 years. The trial court determined that the possessory interest in the property held by Williams Chapel and its trustees was held in trust for the benefit of the national AME church, and ordered that all property of Williams Chapel and all bank, mortgage, insurance, and other like accounts of Williams Chapel be delivered to appellees within four days. The trial court also ordered that the names of appellants be removed from all accounts and that the national AME church assume all indebtedness on any personal property and indemnify appellants from same. Appellants appeal from that order. 1. "It is incumbent upon this Court to inquire into its own jurisdiction, regardless of whether the issue of jurisdiction is raised by the parties. [Cit.]" In the Interest of K. R. S., 284 Ga. 853 (1) (672 SE2d 622) (2009). Appellants rely upon our subject matter jurisdiction over "[c]ases involving title to land . . . ." Ga. Const. of 1983, Art. VI, Sec. VI, Par. III (1). Pretermitting that issue, however, we find that this appeal comes within our appellate jurisdiction over "[a]ll equity cases . . . ." Ga. Const. of 1983, Art. VI, Sec. VI, Par. III (2). "For purposes of this Court's subject matter jurisdiction, `"equity cases" are those in which a substantive issue on appeal involves the legality
The trustees of Williams Chapel executed a security deed in 2003 by which they conveyed the real property to a bank to secure a promissory note for the $40,443.94 the bank had loaned Williams Chapel. The bank apparently accepted the security deed based upon the title affidavits of two long-time members of Williams Chapel who stated there had never been a claim, question, or controversy concerning the local church's right of ownership of the property.
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or propriety of equitable relief sought in the superior court. . . .' [Cit.]" Lamar County v. E.T. Carlyle Co., 277 Ga. 690, 691 (1) (594 SE2d 335) (2004). In 1991, this Court issued Beauchamp v. Knight, [261 Ga. 608 (409 SE2d 208) (1991),] which held that whether an action is an equity case for the purpose of determining jurisdiction on appeal "depends upon the issue raised on appeal, not upon how the case is styled nor upon the kinds of relief which may be sought by the complaint," [cit.] and that "(c)ases in which the grant or denial of such relief are merely ancillary to underlying issues of law, or would have been a matter of routine once the underlying issues were resolved, are not equity cases." [Cit.] (Emphasis in original.) Redfearn v. Huntcliff Homes Assn., 271 Ga. 745, 747 (2) (524 SE2d 464) (1999). The case lies outside this Court's equity jurisdiction only if determination of the equitable issue in the appeal "flows directly" from the resolution of a legal question. Lee v. Green Land Co., 272 Ga. 107-108 (527 SE2d 204) (2000). "Where equitable relief must routinely follow upon the determination of legal issues, there is no question of `the legality or propriety of equitable relief' and the case is not one in equity." Lamar County v. E.T. Carlyle Co., supra. The trial court here granted equitable relief when it ordered that appellants' "names shall be removed from all accounts, and such accounts (bank, mortgage, insurance, and any other like accounts) shall be delivered to" appellees by a certain date and that the "Plaintiff Church shall assume all indebtedness on any personal property and shall indemnify [appellants] from same." In their enumerations, appellants have included an alternative contention that the trial court should have protected them more fully by

requiring immediate payment of the indebtedness on the renovation as a condition of the AME church taking title to the property. See Division 4, infra. The determination of this issue of precisely how the trial court should have molded the equitable relief to protect appellants does not flow directly or automatically from the legal conclusion that the real property is held in trust for the AME church. Review of that equitable issue would require examination of the trial court's exercise of discretion and depends upon equitable considerations. See State Farm Mut. Auto. Ins. Co. v. Mabry, 274 Ga. 498, 510 (5) (556 SE2d 114) (2001). Justice Benham's dissent fails to address this analysis, and its approach would destroy much of our equity jurisdiction. That approach would require the anomalous result of divesting this Court of its subject matter jurisdiction over all equity cases even when we are asked to review a decision by the trial court which, like the one at issue in this case, obviously requires a weighing of equitable considerations in order to determine the scope of equitable relief. Because resolution of the equitable issue raised here would not be a matter of routine once the underlying legal issues are resolved, we conclude that a substantive issue on appeal involves the legality or propriety of equitable relief. Therefore, this appeal comes within this Court's jurisdiction over equity cases, and we will proceed to determine the merits thereof. 2. Appellants contend the trial court erred in ruling that Williams Chapel and its trustees held the real property in trust for the national AME church and that the assets of Williams Chapel were the property of the

national church. While the State has a legitimate interest in the peaceful resolution of property disputes and provides a civil forum in which the ownership of church property can be determined, "the First Amendment severely circumscribes the role that civil courts may play in resolving church property disputes." Jones v. Wolf, 443 U. S. 595, 602 (99 SC 3020, 61 LE2d 775) (1979). As a result, civil courts use "neutral principles of law," i.e., statutes, charters, relevant deeds of conveyance, and the organizational constitutions and bylaws of the denomination, to resolve hierarchical church property disputes. Georgia Dist. Council of Assemblies of God v. Atlanta Faith Memorial Church, 267 Ga. 59 (1) (472 SE2d 66) (1996); Crumbley v. Solomon, 243 Ga. 343 (254 SE2d 330) (1979). A trust in favor of the general church can be created by the deed on the property, can be implied under state statutes, or can be required by the constitution of the general church. Presbyterian Church v. Eastern Heights Presbyterian Church, 225 Ga. 259, 260 (167 SE2d 658) (1969). See also Carnes v. Smith, 236 Ga. 30, 35 (222 SE2d 322) (1976). However, as the trial court found, there is no deed on the property in this case. Furthermore, while Georgia statutorily recognizes that trustees to whom deeds of conveyance are executed for the use of a church or religious society are subject to the authority of the church for which they hold same in trust and may be expelled from that trust according to the rules of discipline by which they may be governed (OCGA
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