PRESBYTERIAN CHURCH OF THE PALISADES, INC. VS. ROBERT H. HWANG (C-000068-19, BERGEN COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided November 29, 2021·No. A-3217-19·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3217-19

PRESBYTERIAN CHURCH OF THE PALISADES, INC., a New Jersey religious corporation, EASTERN KOREAN PRESBYTERY, a New Jersey religious corporation, and THE ADMINISTRATIVE COMMISSION OF THE PRESBYTERIAN CHURCH OF THE PALISADES, INC.,

Plaintiffs-Respondents/

Cross-Appellants,

v.

ROBERT H. HWANG and JONG KIL JEUNG,

Defendants-Appellants/

Cross-Respondents.

244 OLD TAPPAN ROAD, LLC,

Intervenor-Respondent.

Argued November 9, 2021 – Decided November 29, 2021

Before Judges Haas and Mawla.

On appeal from the Superior Court of New Jersey, Chancery Division, Bergen County, Docket No.

C-000068-19.

Evan L. Goldman argued the cause for appellants/crossrespondents (Goldman Davis Krumholz & Dillon, PC, attorneys; Evan L. Goldman, Mark D. Ygarza, and Kristen Ragon, on the briefs).

Ellen O'Connell argued the cause for respondents/cross-appellants (Inglesino, Webster, Wyciskala & Taylor, LLC, attorneys; Ellen O'Connell, of counsel and on the briefs).

Graff Silverstein, LLP, attorneys for intervenorrespondent 244 Old Tappan Road, LLC, join in the brief of respondents/cross-appellants Presbyterian Church of the Palisades, Inc., Eastern Korean Presbytery, and The Administrative Commission of the Presbyterian Church of the Palisades, Inc.

PER CURIAM Defendants Robert Hwang and Jong Kil Jeung appeal from the Chancery Division's August 22, 2019 order granting summary judgment to plaintiffs Presbyterian Church of the Palisades, Inc. (Church), Eastern Korean Presbytery (EKP), and the Administrative Commission of the Presbyterian Church of the Palisades in this dispute over the ownership of Church property located in Old Tappan. The trial court determined that the Presbyterian Church USA

A-3217-19

(PC(USA)), as represented by the Administrative Commission and the EKP, properly held title to the Church's property, and to the proceeds from the sale of that property to intervenor Old Tappan Road LLC. Plaintiffs cross-appeal from the court's March 11, 2020 order compelling them to escrow the sale proceeds pending appeal.

Having considered the parties' respective arguments in light of the record and the applicable law, we affirm the August 22, 2019 order, vacate the March 11, 2020 order, and remand to the trial court for the entry of an order directing the release of the escrowed funds to plaintiffs.

I.

We begin by reciting the most salient facts. The Presbyterian denomination is a hierarchical church. It consists, in descending order, of a General Assembly, a Synod, a Presbytery, and the individual congregation, represented by a Session. The Session is a group of seven "elders" elected by the congregation which constitutes the governing body of the church. Presbyteries have the authority over the sessions and congregations that fall within each of their geographical mandates, including requiring compliance with the General Assembly's Book of Order. The Synod is a regional entity that has authority over the presbyteries. The General Assembly covers the entire United

A-3217-19

States and has authority over the synods and presbyteries. The PC(USA) is considered the General Assembly.

Hyon Kim, Executive Presbytery of the EKP, stated in a certification that the EKP is a New Jersey religious corporation affiliated with the PC(USA). It is the governing body of the Korean-speaking PC(USA) churches in the metropolitan New York area.

The Book of Order is the Constitution of the PC(USA) and governs the temporal and spiritual affairs of all the governing bodies. As to real property, the Book of Order provides:

The provisions of this Constitution prescribing the manner in which decisions are made, reviewed, and corrected within this church are applicable to all matters pertaining to property.

All property held by or for a congregation, a presbytery, a synod, the General Assembly, or the Presbyterian Church (U.S.A.) . . . is held in trust nevertheless for the use and benefit of the Presbyterian Church (U.S.A.).

....

A congregation shall not sell, mortgage or otherwise encumber any of its real property and it shall not acquire real property subject to an encumbrance or condition without the written permission of the presbytery transmitted through the session of the congregation.

A-3217-19

A congregation shall not lease its real property used for purposes of worship, or lease for more than five years any of its other real property, without the written permission of the presbytery transmitted through the session of the congregation.

[(subsection headings omitted).]

The Church was formed in March 1984, and incorporated in May 1984, as amended in February 1993. Its articles of incorporation, as contained in the record, do not state anything regarding the holding and disposition of real property. The Church's property was held in trust by a corporation, the Presbyterian Church of the Palisades, Inc., formed under Title 16, specifically, N.J.S.A 16:11-1 to -24. The Church was originally organized as part of the Korean Presbyterian Church in America.

In 1991, the Church purchased three acres of property in Old Tappan for $750,000 on which the church sanctuary was constructed. Construction of the church cost $4 million. The Church purchased an additional five acres of nearby property for $1,050,000 in April 2000. In December 2004, the Church took out a $3.2 million mortgage on the property of the constructed church from Valley National Bank.

In March 2006, the Church voted to affiliate with the PC(U.S.) and it thereafter belonged to the EKP. The Church's Bylaws, adopted on August 26, 2007, said nothing about the Church property beyond authorizing the board of A-3217-19

trustees to decide on matters involving the acquisition and disposal of property. The bylaws further stated that all matters not specified in this bylaw follow the Book of Order of the PC(USA).

In June 2016, the Church defaulted on the Valley National Bank mortgage loan. The bank subsequently obtained a judgment of foreclosure and writ of execution. The outstanding mortgage, plus interest and penalties, was approximately $2.7 million. On July 17, 2017, the Church applied for a $2.5 million loan from PC(USA). In December 2017, intervenor purchased the judgment of foreclosure and writ of execution.

At a meeting on January 22, 2018, the EKP approved a resolution permitting it to assume jurisdiction over the Church's Session through the appointment of an Administrative Commission. In support, the resolution cited the fact that there was only one Session member instead of seven, the Church's financial situation, and alleged misconduct in the handling of the mortgage on the property. The Administrative Commission was authorized to be the sole authority to manage the Church's affairs and assets, including real estat e and bank accounts.

According to Kim, on December 16, 2018, he and the chair of the Administrative Commission, Hu Nam-Nam, attempted to enter the Church

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property but defendants physically prevented them from accessing it. Subsequently, the Administrative Commission warned defendants not to enter Church grounds, but defendants continued to do so, resulting in "unpleasant confrontations during a meeting of the congregation." Nam-Nam stated that as a result of defendants' behavior, he brought disciplinary charges against them, which resulted in defendants' dismissal from both Church membership and the PC(USA). Defendants nonetheless held a board of trustees meeting, with just the two of them present. Because of what Kim described as this "fraudulent" meeting, the Church's account at Bank of America was frozen.

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PRESBYTERIAN CHURCH OF THE PALISADES, INC. VS. ROBERT H. HWANG (C-000068-19, BERGEN COUNTY AND STATEWIDE), (N.J. Ct. App. 2021).

PRESBYTERIAN CHURCH OF THE PALISADES, INC. VS. ROBERT H. HWANG (C-000068-19, BERGEN COUNTY AND STATEWIDE) (PRESBYTERIAN CHURCH OF THE PALISADES, INC. VS. ROBERT H. HWANG (C-000068-19, BERGEN COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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