Greek Orthodox Archdiocese of North & South America v. Abrams

162 Misc. 2d 850, 618 N.Y.S.2d 504, 1994 N.Y. Misc. LEXIS 468
CourtNew York Supreme Court
DecidedOctober 7, 1994
StatusPublished
Cited by1 cases

This text of 162 Misc. 2d 850 (Greek Orthodox Archdiocese of North & South America v. Abrams) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greek Orthodox Archdiocese of North & South America v. Abrams, 162 Misc. 2d 850, 618 N.Y.S.2d 504, 1994 N.Y. Misc. LEXIS 468 (N.Y. Super. Ct. 1994).

Opinion

OPINION OF THE COURT

Stuart C. Cohen, J.

In this proceeding, petitioner Greek Orthodox Archdiocese of North and South America (the Archdiocese) seeks, inter alia, an order declaring the validity of a 1987 order issued by the Supreme Court, Westchester County, which approved the sale of certain real property owned by the Archdiocese. The Archdiocese also challenges the constitutionality of certain statutes pursuant to which the Attorney-General of the State of New York contends that the Archdiocese’s actions require further governmental review and approval.

The Archdiocese was incorporated in 1921 under the Religious Corporations Law. It is a church recognized by the Apostolic Historic Eastern Orthodox Patriarchate of Constantinople, as referred to under section 290 of the Religious Corporations Law. The Greek Orthodox Church is the worldwide body of communicants of the Greek Orthodox faith. The Archdiocese states that it is the highest spiritual and governing authority of the church for all communicants of the Greek Orthodox faith in North and South America.

On or about November 24, 1980, the Archdiocese purchased approximately 29 acres of partially improved real property in Purchase, Town of Harrison, Westchester County. On or about September 26, 1983, the Archdiocese purchased approximately 22 acres of unimproved property adjacent to the first parcel. These 51 acres of land were known collectively as the "Lincoln Rise Property.”

In 1986, the Archdiocese decided to sell the Lincoln Rise Property. Proposals were received from several parties as to possible purchase, but these proposals were determined to be [853]*853insufficient. In late 1986, Chris Demetriades, the director of economic development of the Archdiocese, made a proposal on behalf of his corporation, Demetriades Developers, Inc. (DDI), to purchase the property for approximately $10,000,000. On or about February 13, 1987, the executive committee of the Archdiocesan Council unanimously passed resolutions approving the proposed sale to DDI.

Paragraphs 6 and 44 of the contract of sale expressly conditioned the agreement’s enforceability on court approval thereof as required by section 12 of the Religious Corporations Law. On or about March 23, 1987, the Archdiocese commenced a proceeding in Supreme Court, Westchester County, entitled Matter of Greek Orthodox Archdiocese of N. & S. Am. (index No. 5874/87). The Attorney-General was not given notice of this proceeding. Nevertheless, on April 3, 1987, an order was entered granting permission to the Archdiocese to sell the Lincoln Rise Property to DDL The order provided that the Archdiocese was authorized "to do all such necessary things, and to sign, acknowledge and deliver any and all documents as may be deemed appropriate and required in connection therewith” and "that the consideration received by the [Archdiocese] will be for corporate purposes.” On March 18, 1987, the Archdiocese and DDI held a closing of the sale of Lincoln Rise Property. DDI gave the Archdiocese, among other things, cash in the amount of $4,692,500, a subordinated note and mortgage in the principal amount of $5,307,500 and a note in the amount of $4,347,606.

Subsequent to obtaining court approval of the conveyance, the Archdiocese agreed to modify its contract of sale with DDI at two different times. In the summer of 1990, the Archdiocese received letters from DDI describing its financial difficulties and requesting that modifications be made to the contract of sale. After considering DDI’s request, the Archdiocese agreed to restructure the contingent interest formula contained in the agreement.

In September 1991, DDI requested a second modification. DDI submitted a letter from its certified public accountants, representing that DDI had incurred approximately $10 million of additional costs and expenses due to the Lincoln Rise Project. DDI proposed a 2^-year restructuring of the debt arguing that if it was not granted such relief, it would seek the protection of the bankruptcy laws. In January 1992, the Archdiocese agreed to accept a one-time cash payment of [854]*854$1,303,275 from DDI in return for releasing DDI from any further obligations under the contract.

The Archdiocese neither sought nor obtained court approval for either of these modifications. In August 1992, Simos Di-mas, a member of the Archdiocese, commenced a CPLR article 78 proceeding against the Archdiocese and DDI alleging, among other things, that the Archdiocese had not properly obtained court approval for the conveyance of the Lincoln Rise Property to DDI or for any of the modifications to the contract of sale. The Attorney-General also alleged, inter alla, that the Archdiocese was required to obtain court approval for the modifications. As a means of resolving these conflicting claims, the Archdiocese commenced this proceeding.

In the petition, the Archdiocese seeks an order declaring that the 1987 order of the Supreme Court, Westchester County, approving the sale to DDI was valid and that subsequent modification to the contract did not require further court approval. In the alternative, the Archdiocese contends that section 12 (1) of the Religious Corporations Law is unconstitutional. The Attorney-General interposed an answer which includes a counterclaim alleging that the modifications to the contract were consummated in violation of the law and requiring the Archdiocese to seek nunc pro tune approval of the modifications.

Presently before the court are motions for summary judgment by the Archdiocese and DDI which seek judgment for the relief demanded in the petition. The Attorney-General opposes these motions and moves for leave to conduct discovery.

The Archdiocese first seeks a declaration that Religious Corporations Law § 12 (1), the statute mandating court approval of the sale, does not apply to a church’s sale of real property which is not used as a place of worship and, therefore, does not apply to the Archdiocese’s sale of the Lincoln Rise Property.

Religious Corporations Law § 12 (1) provides, in relevant part: "A religious corporation shall not sell, mortgage or lease for a term exceeding five years any of its real property without applying for and obtaining leave of the court therefor pursuant to section five hundred eleven of the not-for-profit corporation law” (emphasis added).

The language of this provision is clear and unambiguous. By using the words "any of its real property” the Legislature did [855]*855not intend to limit applicability of the statute to property used as a place of worship.

Where a statute describes the particular situations in which it is to apply and no qualifying exception is added, an irrefutable inference must be drawn that what is omitted or not included was intended to be omitted or excluded (Matter of Alonzo M. v New York City Dept. of Probation, 72 NY2d 662). Had the Legislature intended to limit the applicability of Religious Corporations Law § 12 (1), as the Archdiocese contends, it could have done so easily through appropriately worded legislation (see, Eaton v New York City Conciliation & Appeals Bd., 56 NY2d 340).

Furthermore, the court cannot consider any legislative history which contradicts the clear and unambiguous language of the statute. Where, as here, a statute is clear, a court should not attempt to cure an omission in the statute by supplying what it believes should have been put there by the Legislature.

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162 Misc. 2d 850, 618 N.Y.S.2d 504, 1994 N.Y. Misc. LEXIS 468, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greek-orthodox-archdiocese-of-north-south-america-v-abrams-nysupct-1994.