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TEC Texas legal setback: The Church of England Newspaper, Dec 24, 2010, p 7. December 23, 2010

Posted by geoconger in Church of England Newspaper, Fort Worth, Property Litigation.
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The Rt. Rev. Jack L. Iker, Bishop of Fort Worth

First published in The Church of England Newspaper.

The Episcopal Church suffered a setback this week in its Texas legal battle with the breakaway Diocese of Fort Worth after a US Federal judge stayed all proceedings in the trademark against Bishop Jack Iker, pending the diocese’s motion to intervene in the case.

On Dec 20, Judge Terry R. Means in Fort Worth issued a one-page order that “in the interests of judicial economy and fairness to all parties,” the proceedings in the Episcopal Church’s trademark infringement suit against Bishop Iker would be stayed until the court ruled on the diocese’s request to intervene in the proceedings.

The decision affects only the third of the four lawsuits initiated by the national Episcopal Church and its surrogates against Bishop Iker and the majority faction of the Diocese of Fort Worth.  On Sept 21, lawyers for Bishop C. Wallis Ohl, Jr. and the loyalist faction filed a complaint against Bishop Iker, saying his “unauthorized use of the Service Marks in his provision, advertising, and marketing of religious service and works is likely to cause confusion among the public seeking to participate in, benefit from, or support [the Diocese’s] religious services and works.”

In its press release, the loyalist faction stated unsuspecting members of the public might be duped into attending worship services conducted by clergy from the majority faction under the “mistaken belief” the services they were attending were “provided by, sponsored by, or affiliated” with the minority faction loyal to the Episcopal Church.

Bishop Iker responded the lawsuit was “preposterous” and “vindictive” because the minority faction was “trying to get a different result in federal court from the state court ruling” in favor of the majority faction.

The first lawsuit initiated by the Episcopal Church was filed in Tarrant County, Texas in 2009, sought control of the assets of the Diocese of Fort Worth by claiming the minority faction loyal to the national church was the true Diocese of Forth Worth.  Bishop Iker countered the minority faction had not the authority to bring the suit in the name of the diocese.  The trial court found in favor of Bishop Iker but declined to strike the national church’s lawsuit.

Bishop Iker asked the Fort Worth Court of Appeal to review the trial judge’s decision not to strike the pleadings.  The appeals court backed Bishop Iker and ordered the trial court to strike all the pleadings filed by attorneys for the minority faction who claimed to represent the diocese.

A second lawsuit was then initiated by the national church in Hood County, Texas, seeking control of diocesan assets in that county, and was prosecuted in the name of the Diocese of Fort Worth.  The Hood County court stayed proceedings in that case pending the outcome of the first lawsuit.

On Sept 21, the minority faction filed its third lawsuit against Bishop Iker, and on Oct 18 a fourth lawsuit was brought by a loyalist congregation against the bishop, asserting trademark violations.

Legal commentator Allan Haley, who served as one of the attorneys for the breakaway diocese of San Joaquin in its battle with the national church and its supporters in California, commented the Dec 20 decision by Judge Means showed the judge “grasped what ECUSA and its rump diocese were trying to do.”

The national church’s strategy of doing an “end run around the State courts” has been “rebuffed,” Mr. Haley said.

“The courts have uniformly told ECUSA and its attorneys thus far: ‘Not so fast. You cannot assume the very point at issue by pretending to be what you have not shown yourself to be … you have not demonstrated how you are legitimately in charge of those entities. Until you do so, you cannot come into court pretending to be them from the outset’,” he observed.