Kinney v. Catholic Diocese of Biloxi, Inc.

142 So. 3d 407, 2014 WL 3513125, 2014 Miss. LEXIS 328
CourtMississippi Supreme Court
DecidedJuly 17, 2014
DocketNo. 2012-CA-01782-SCT
StatusPublished
Cited by7 cases

This text of 142 So. 3d 407 (Kinney v. Catholic Diocese of Biloxi, Inc.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kinney v. Catholic Diocese of Biloxi, Inc., 142 So. 3d 407, 2014 WL 3513125, 2014 Miss. LEXIS 328 (Mich. 2014).

Opinion

WALLER, Chief Justice, for the court:

¶ 1. Frank Schmidt Sr. and other former parishioners of the St. Paul Catholic Church in Pass Christian (“Plaintiffs”) seek review of the second dismissal with prejudice of their claims against the Catholic Diocese of Biloxi, Inc., Most Reverend Thomas J. Rodi (“Bishop Rodi”), and Rev. Dennis Carver (“Church Defendants”). This is the second appearance of these parties before this Court. See Schmidt v. Catholic Diocese of Biloxi, 18 So.3d 814 (Miss.2009) (“Schmidt /”). On remand, the chancellor denied Plaintiffs’ motions for additional discovery and granted Church Defendants’ motion for summary judgment, dismissing Plaintiffs’ claims with prejudice. Plaintiffs now file this appeal, asserting the chancellor erred in dismissing their claims for diversion of designated funds and intentional misrepresentation.

FACTS & PROCEDURAL HISTORY

¶ 2. The initial facts of this case are taken in part from those in Schmidt I:

¶ 2. The St. Paul Catholic Church was established in 1847 in Pass Christian, by the Roman Catholic Church. The Roman Catholic Church is a hierarchical church, meaning that local churches are subordinate members of the general church, which maintains ultimate authority or control. See Watson v. Jones, 80 U.S. 679, 722-27, 13 Wall. 679, 20 L.Ed. 666 (1871).
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¶ 3. On August 29, 2005, Hurricane Katrina ravaged the Mississippi Gulf Coast. The storm caused extensive damage to the St. Paul property. St. Paul’s gymnasium and the St. Paul Catholic Elementary School essentially were destroyed. The actual church building was also damaged, although the extent of the damage is disputed by the parties. Plaintiffs insist that the church remains structurally sound, that many of its sacred articles were unharmed, and that repair costs should be less than $2.5 million. Church Defendants maintain that the church and its most sacred places were “destroyed in large part.”
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¶ 4. On November 27, 2005, Bishop Rodi issued a decree merging the St. Paul and Our Lady of Lourdes Parishes to form a new parish called the Holy Family Parish. The decree stated that the Holy Family Parish would maintain two church edifices, St. Paul Church and Our Lady of Lourdes Church. The decree also provided that “[i]n accordance with canon 121, Holy Family Parish obtains the goods and patrimonial rights proper to Saint Paul Parish and Our [410]*410Lady of Lourdes Parish as well as the obligations with which they were burdened .... ” Pursuant to this decree, plans were initiated to rebuild the St. Paul Church, and donations were solicited and given for that purpose. More than one year later, on March 18, 2007, Bishop Rodi issued a second decree announcing that Our Lady of Lourdes would be the only church in the Holy Family Parish. This decision effectively closed the doors of the St. Paul Church. According to Father Carver, this decision was made because of a shortage of priests, and because Our Lady of Lourdes Church, unlike St. Paul, is located in a non-flood-zone area.
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¶ 6. A number of St. Paul’s former parishioners, including some of the Plaintiffs in the subject case, filed a canonical appeal through the Roman Catholic Church’s ecclesiastical tribunals. On November 30, 2007, the Vatican issued a decree which stated that Bishop Rodi had acted in accordance with the requirements and procedures set forth under canon law.

Schmidt I, 18 So.3d at 818-21.

¶ 3. While the canonical appeal was pending,1157 former parishioners filed suit (“Schmidt I ”) against the Catholic Diocese of Biloxi, Bishop Rodi, and Father Carver, asserting, in part, that Bishop Rodi held the St. Paul Church property in trust for the members, that any financial contributions designated for reconstruction of the church were held in trust for that particular purpose, that Defendants had violated said trusts, and that Father Carver had made misrepresentations in soliciting donations for the rebuilding efforts. Id. at 819-20. The chancellor dismissed Plaintiffs’ claims with prejudice, finding that the court lacked subject-matter jurisdiction based on the church autonomy doctrine of the First Amendment to the United States Constitution. Id. at 821.

¶ 4. This Court affirmed the chancellor in part, finding that Plaintiffs “lack standing to assert that the St. Paul property is held in trust for their benefit.” Id. at 829. Also, the Court found “that the chancellor correctly determined that our courts may not consider whether Church Defendants’ management or administrative decisions were fiscally irresponsible, or whether those decisions were in the best interests of parishioners.” Id. at 829-30. However, the Court reversed and remanded the chancellor’s dismissal of the diversion-of-designated-funds claim, as well as the claim against Father Carver for intentional misrepresentation, finding subject-matter jurisdiction existed over these claims. Id. at 832.

¶ 5. On remand following Schmidt /, Plaintiffs pursued further discovery, serving Church Defendants with a subpoena duces tecum, directing Father Carver to appear for a deposition and to bring with him documents relating to every donation received by Church Defendants, from both plaintiffs and nonplaintiffs. Subsequently, Church Defendants filed a Motion to Quash the Subpoena, Motion to Stay Discovery, and a Motion for Summary Judgment. Essentially, the discovery dispute revolved around whether Plaintiffs’ claims were limited to those arising solely from Plaintiffs’ donations or whether they could seek discovery and maintain a suit on behalf of a class of donors, irrespective of whether the donors were named Plaintiffs.

[411]*411¶ 6. The court ruled in favor of Church Defendants regarding discovery, finding that the “gravamen of both surviving claims pertains to the money each individual Plaintiff paid to [Church Defendants], [and] Plaintiffs are in a unique position to know everything they need to know about any donations which underpin their claims, so as to refute the Church Defendants’ Motion for Summary Judgment without any need for discovery.” The chancellor noted that the Mississippi Rules of Civil Procedure do not recognize class actions; thus, the only claims before the court “are those of the named Plaintiffs.” In addition, the chancellor found that a claim for intentional misrepresentation could have been made only after Bishop Rodi’s March 13, 2007, decree, “when any solicitation statement by Father Carver ... became patently false,” but prior to the time when Plaintiffs received knowledge of the church’s closure.2

¶ 7. After hearing oral arguments on Church Defendants’ Motion for Summary Judgment, the chancellor granted the motion.3 With regard to the diversion claim, the chancellor initially noted that, even taking into account Lead Plaintiff Schmidt’s affidavit opposing the motion, Plaintiffs did not produce evidence that disputed Church Defendants’ evidence regarding contributions received and refunds returned. Citing Schmidt I and its discussion of Barker v. The Wardens & Vestrymen of St. Barnabas Church,4

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Bluebook (online)
142 So. 3d 407, 2014 WL 3513125, 2014 Miss. LEXIS 328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinney-v-catholic-diocese-of-biloxi-inc-miss-2014.