In the ‘if you live by the sword you die by the sword’ category:

Catholic Church Is Dealt a Blow in Asset Dispute
THE WALL STREET JOURNAL – December 31, 2005; Page A3

A federal bankruptcy-court judge in Portland, Ore., ruled Friday that the Catholic archdiocese there can’t shield the sale of parish assets from compensation claims made by victims of sexual abuse by priests.

In a decision that could have national ramifications, Judge Elizabeth Perris found that sex-abuse victims, who have filed about 100 outstanding claims with potential damages of at least $300 million, may seek compensation from assets including parish churches and schools within the diocese.

While a victory for abuse victims, the decision represents a blow not only for the diocese but also for Catholic parishioners in Portland and across the country who are trying to protect church properties and bank accounts from liquidation.

Ruling in the bankruptcy case of the Portland archdiocese, the judge denied the diocese’s claim that its extensive real-estate holdings—”valued from $400 million to $600 million—”shouldn’t be available to pay creditors’ claims because they are held in trust for the parishes as beneficiaries. The diocese contended that victims should only be entitled to diocesan possessions, valued at around $19 million, including the bishop’s residence and chancery.

Although the diocese said that the question should properly be decided under canon, or church law, the judge wrote, “Who owns the property is, quite simply, not a theological or doctrinal matter.”

The judge is right and you’ve entered his realm.  The title to all church property in every diocese in the United States is held in the name of the Bishop Ordinary only.  He is the sole trustee for the diocese, the parish, and for any and all assets.  He can do what he sees fit with the assets as long as it is in keeping with Canon Law.  It’s been that way since the 3rd Council of Baltimore (1884).  From the Catholic Encyclopedia:

[The] Third Plenary Council of Baltimore (1884), in its decrees on the subject of church property, urges the bishops to place all church property under the protection of legal incorporation, where it can be done safely, as in the State of New York; where such incorporation cannot be made it requests the bishop to have himself made a corporation sole and thus hold the property as any other corporation would; and where this cannot be done it permits him to hold the property in fee simple” (Rev. J. M. Farley, now Archbishop Farley, in “The Forum”, June, 1894).   

People just keep thinking, ‘hey, this is my church.’  No, sorry, it is not and never was.  It is one of the reasons that the PNCC broke away from the Roman Catholic Church.  It is why the Bishop can close your parish.  He doesn’t need that white-wash committee of laity and a few nuns.  They are there only as a faí§ade.  If the Bishop says so, it is so.  Only the Roman Pontiff or his delegated authority in the Curia can overrule your Bishop.

Back to the WSJ article:

The judge also rejected the argument of the Portland diocese’s 390,000 Catholics, who were named a separate defendant class, that civil law would bar the diocese from selling assets against parishioner wishes. “Under civil law, the parishes and high schools are not separate civil legal entities,” Judge Perris found.

A written statement issued by the diocese said: “We feel strongly that this decision is not supported by the facts or the law, and believe it infringes on Archdiocese’s right and the parishioners’ rights to freely exercise their religion. We will review our options to appeal.”

Sure, but the civil court will look at the documentary evidence.  Who holds title to the property?  It is the Bishop as CEO and trustee for the corporation —“ i.e., the diocese.

He is in effect ‘the diocese.’  The Church is certainly the body of Christ in all its constituent members.  However, the church (small ‘c’ meaning its physical belongings) has nothing to do with the members.

When the Church subjects itself to the civil courts you will get a civil court verdict.  Did you expect an ecclesiastical decision based on Canon Law from the United States Bankruptcy Court?  You are not dealing with the Rota.

As you appeal, the decision takes a higher level of precedence.  It goes from a decision applicable in the Federal District to one applicable in the Circuit and eventually, if taken to the Supreme Court, applicable nationwide.

Although Judge Perris’s decision and a similar ruling by a bankruptcy-court judge in Washington state in August aren’t binding on judges in other jurisdictions, they are expected to influence cases cropping up across the country that also deal with control over church assets.

Catholics in Boston, New York and elsewhere are fighting the closings of their parishes by contending that they, rather than the diocese, have control over churches, schools, bank accounts and other assets. These internal battles have become so heated that the St. Louis archdiocese recently excommunicated leaders of one parish who refused to turn over assets to the bishop, a subject of a page one Wall Street Journal article on Dec. 20.

Abp. Burke in St. Louis had to beg St. Stan’s for its $10 million because by act of a Bishop 125 years ago the property was deeded to the parish council, not the Bishop.  Thanfully these people saw what was coming and said no.  Abp. Burke wants it one way, Portland and Spokane want it another way.  The R.C. Church and its bishops look like keystone cops.  Where’s the USCCB?  Shouldn’t the bishops speak with unanimity on issues?  Not in the United States! 

Each is in charge of his personal fiefdom.  Each feels completely separated from the center.  Each proclaims the strength and unity of the Church and —Ex Ecclesia Nulla Salus— (Outside the [Roman Catholic] Church there is no salvation), all the while each chooses his own way.  Who may/may-not receive the Eucharist, will I follow the Church’s rules on homosexuality and seminary life, and whatever else (architecture, music, liturgy, inclusive language..).

The poor Roman Catholic faithful are faced with an episode of cognitive dissonance.  Their bishops say one thing, but do another.

Another federal bankruptcy judge sided against the Spokane, Wash., diocese in a similar bankruptcy ruling in August. The Spokane bishop has appealed.

David Skeel, a University of Pennsylvania law professor, said that the Portland ruling hurts parishioners nationwide who contend that dioceses cannot close churches or take assets on their own. “What this opinion confirms is that the archdiocese is in charge, with respect to the property,” he said. He added that the decision is likely to unsettle parishioners by making clear that parishioners will ultimately pay for the abuse scandal. “Even if…the priest was never in their parish, they still pay the price,” he said.

Yep!