Church of the Foursquare Gospel (Australia) Ltd v New Hope Church Swansea Inc [2019] NSWSC 519

Church of the Foursquare Gospel (Australia) Ltd v New Hope Church Swansea Inc [2019] NSWSC 519

The Belmont Street Property was purchased and used for the purposes of public worship by a local congregation, creating a charitable trust for the advancement of religion benefiting that congregation, with ownership as trustee capable of succession to a new entity (New Hope) when the congregation evolved. Foursquare holds the property as trustee only, for the congregation's religious purposes; upon severance of affiliation and inappropriateness of the existing trustee, it is appropriate to remove Foursquare and appoint New Hope as trustee, and for the property to vest accordingly. Similarly, the proceeds of the Josephson Street Property belong in trust for the congregation, with...

Parties
Plaintiff; First Cross Defendant: Church of the Foursquare Gospel (Australia) Ltd; First Defendant; Cross Claimant: New Hope Church Swansea Inc; Second Defendant: Colin Bruce Grigg; Third Defendant: Debra Louise Grigg; Fourth Defendant; Second Cross Defendant: Attorney General for New South Wales
Jurisdiction
Australia
Judgment Date
09 May 2019
Procedural Posture
Equity Charitable Trusts / Determination of Cross Claim After Discontinuance of Primary Claim
Outcome
Declaratory and consequential orders granted as set out in the judgment.
Legal Topics
Identification of Charitable Trusts, Removal and Appointment of Trustees, Change in Denominational Affiliation, Entitlement to Church Property, Successor Religious Association, Trust Property Vesting
Equity Trusts Charities and Non Profit Churches and Religious Associations Identification of Charitable Trusts Removal and Appointment of Trustees Change in Denominational Affiliation Entitlement to Church Property +2 more

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Parties

Church of the Foursquare Gospel (Australia) Ltd

Plaintiff; First Cross Defendant

New Hope Church Swansea Inc

First Defendant; Cross Claimant

Colin Bruce Grigg

Second Defendant

Debra Louise Grigg

Third Defendant

Attorney General for New South Wales

Fourth Defendant; Second Cross Defendant

Procedural Posture

Equity Charitable Trusts / Determination of Cross Claim After Discontinuance of Primary Claim

Legal Issues

  1. 1 Whether the Belmont Street Property was held on charitable trust for the local congregation as it existed from time to time
  2. 2 Whether New Hope Church Swansea Inc is the successor body to the original congregation
  3. 3 Whether the proceeds of sale of the Josephson Street Property are held on charitable trust for the congregation

Ratio Decidendi

The Belmont Street Property was purchased and used for the purposes of public worship by a local congregation, creating a charitable trust for the advancement of religion benefiting that congregation, with ownership as trustee capable of succession to a new entity (New Hope) when the congregation evolved. Foursquare holds the property as trustee only, for the congregation's religious purposes; upon severance of affiliation and inappropriateness of the existing trustee, it is appropriate to remove Foursquare and appoint New Hope as trustee, and for the property to vest accordingly. Similarly, the proceeds of the Josephson Street Property belong in trust for the congregation, with...

Court Disposition

Declaratory and consequential orders granted as set out in the judgment.

Orders

  • Declaration that the Belmont Street Property was, from 13 December 1967, dedicated to use for public worship and prayer according to the tenets of the original congregation and held on charitable trust for that congregation.
  • Declaration that New Hope is the successor body to the original congregation.