"[Myself] and the Standing Committee have thoroughly examined this course of action, together with a number of other legal options (including ending all legal action), and have given our lawyers instructions to press forward with the appeal as a result of this careful examination. Throughout all of the deliberations and debates about how best to proceed, the over-riding concern before the Bishop and Standing Committee has been how best to protect your parishes and your mission.

"The appeal will address numerous errors by the trial court, including how it treated the question of whether the diocese validly withdrew from The Episcopal Church. The issue of validity of diocesan withdrawal unavoidably includes validity of parish withdrawal. We expect a decision on our appeal in the first quarter of 2011."

Duncan said that he and the Standing Committee have continued to seek a negotiated settlement throughout all these months. Both formal (letters) and informal (conversations) means have been employed, but he said that he and the Standing Committee have come to a fresh appreciation of the importance of all parishes "hanging together, lest we hang separately."

"On the legal front this means that the appeal of the Court of Common Pleas decision is the unified course of action for all parishes. Nevertheless, the Standing Committee has also foreseen the possibility that one or more parishes may be drawn to pursue an independent and alternative course as a result of peculiar local circumstances. The Standing Committee's resolve in this is that such a parish - in order to protect the best interests of all other parishes - be respectfully urged to formally consult with the Standing Committee, and receive the Standing Committee's endorsement, before thus proceeding. We believe that in this way true interdependence - classic Anglican "accountable autonomy" - can be exercised to the benefit of all and the detriment of none."

The Bishop and Standing Committee also reaffirmed the position of the Anglican Church in North America and of their own amended local canons that "all parish property is owned by the parishes" without any trust claim by the diocese, he said.

Cost Containment

"The Bishop and Standing Committee are resolved to contain legal costs as effectively as possible. A single diocesan approach on behalf of all the parishes, rather than multiple parish actions, is one feature of this containment. Additionally, the renegotiation of rates, pro-bono consultation and the development of a multi-tiered legal team assists this strategy. Because the issues will be focused, and our lawyers are well-versed in the legal issues that will be addressed on appeal, our appellate legal fees will be substantially less than those at the trial court level. The Bishop and Standing Committee have a confidential fee agreement with our counsel."

Duncan said that legal costs are being paid from gifts to the Staying Faithful Fund and from proceeds of the $200,000 external matching challenge gift announced in November. No funds are being taken from parish assessments to the diocese or from the operating budgets of the diocese or its parishes. All legal bills are paid as of this report. Services are closely monitored and pre-approved. Management is pay-as-you-go. "We will not spend what we do not have. Gifts to the Staying Faithful Fund continue to be solicited and to be given. So far $112,803.32 has flowed through the Fund. The challenge grant increases the value of every gift by 50%. The challenge grant expires December 31st of this year. We do believe it is necessary to fight this fight."

The archbishop said the timeframe for the appeal is 10 to 12 months. Much time is spent waiting for court dates. Because much of the research, approach and writing has already been developed in the first stage of the case, the costs on appeal are not expected to be anywhere near as great. The Bishop and Standing Committee do have a confidential estimate.

Moving Forward in Mission

"The most important thing each parish can do is to move forward in mission. As a parish, whom are you called to reach? Is there an overlooked people-group, social need, or institution at your doorstep? What do you need to reach them? How important are your present buildings to the mission? Are there attractive alternatives? How much does the result of the diocesan appeal actually matter? Could your parish assign a small team to look at contingencies, while the vast majority of your congregation focuses on the mission? Can you shape and plant new congregations, can you draw new people, regardless?

"The lawsuit is a distraction - for now a necessary distraction - but the mission of the Gospel must be our abiding focus. "Launch out into the deep and let down your nets for a catch." [Luke 5.4] Jesus' direction to us is clearer than ever.

Looking at the immediate situation, Duncan said good stewardship meant keeping the facility in good repair, but this may not be the time for unnecessary capital expense, pending either the results of the appeal or your work with the Board of Trustees, he said.

"If you are one of the 25 parishes named in Judge James' order, you may want to appeal to the TEC Diocese for emergency repairs. Such requests are best submitted through the Board of Trustees of the Anglican Diocese of Pittsburgh. Another place to find help is the Parish Strategic Thinking and Real Estate Committee of the Board of Trustees. This committee is eager to work with parishes as they analyze property decisions of all kinds."

Duncan urged rectors not to give back the keys. "Even if your parish is one of the 25 named in the judge's order, you should not hand back your keys. The judge's ruling states specifically that no property should change hands without a further order of the court. In addition, the Anglican Diocese of Pittsburgh has appealed this order. Of course, if you think that your current building does not fit the parish's ministry needs, you should talk to the Parish Strategic Thinking & Real Estate Committee of the Board of Trustees. They will help you analyze the situation and figure out a way forward. "

The archbishop said rectors and vestries should not change the locks. "There is no reason to change the locks, unless you have given keys to too many people and have lost track of them. In that case, it may be wise to 'start over'." The bishop did say it was a good idea to incorporate.

"Incorporation has the effect of limiting personal liability for the obligations of the corporation. When a parish is incorporated, the members, vestry members and clergy cannot normally be held personally liable for the parish's obligations, unless they personally cause an injury - something that is very rare. The decision to incorporate should be made without regard to the lawsuit or the appeal. Incorporation should not be viewed as a means of protecting assets that existed prior to realignment."

Duncan said By-laws should be updated to reflect the change in our diocesan name. "This is a great opportunity to be sure that your by-laws reflect actual current practice. The Standing Committee is responsible for approving parish by-laws and the diocesan office will keep a copy on file for future reference. Sample by-laws are available from the diocesan office."

On the issue of assets, the archbishop said it was important to distinguish assets that existed before realignment from funds that were raised after realignment. One easy way to do that is to put new funds in a different bank account

Asked if the diocese has a contingency plan if the appeal fails, Duncan said, "The Standing Committee will continue to work with the diocesan legal team to protect both parish and diocesan interests. We cannot discuss specific strategic considerations without undermining our work. In any case, the Diocese has already been operating without its assets, so we know that however the lawsuit unfolds, we will continue our work of strengthening congregations.

"No matter how distracted we are by our concerns about the lawsuit, we must focus on mission. We have been a great opportunity to learn how to "seek first the kingdom of God," trusting in God's provision."

Asked if parishioners can we be thrown out of their building, Duncan said "Not without adequate warning and a court order, and we believe such an action is unlikely (though not impossible) while the appeal is in process. The judge's order is very clear that no property can be sold and no congregation made to leave its property without a further order of the court.

"If the TEC diocese keeps sending assessment bills do not pay them. If you are a part of the Anglican Diocese of Pittsburgh, you do not need to pay assessment to the TEC diocese. Paying the mortgage is a legal and moral obligation," he said.

The leaders of eighty percent of the World's Anglicans from 20 Anglican provinces have affirmed [in Singapore ]that the Anglican Church in North America is "a faithful expression of Anglicanism" and welcomed them as "partners in the Gospel." These leaders called for all remaining provinces to "be in full communion with the clergy and people of the ACNA," concluded Duncan.

END