Opinion ID: 2831308
Heading Depth: 3
Heading Rank: 2

Heading: The Trust Is Expressly Irrevocable

Text: The Court holds that, regardless of whether Good Shepherd agreed to hold the church property in trust, the trust was revocable under Texas law. ___ S.W.3d at ___. I disagree. The Court correctly notes that, under Texas law, a trust is revocable unless expressly made irrevocable. TEX . PROP . CODE § 112.051. However, “[n]o specific words of art are required to create an irrevocable trust” so long as the instrument “reflect[s] the trustor’s intent to make the trust irrevocable.” Vela v. GRC Land Holdings, Ltd., 383 S.W.3d 248, 250–51 (Tex. App.—San Antonio 2012, no pet.) (mem. op.) (citing McCauley v. Simmer, 336 S.W.2d 872, 881 (Tex. Civ. App.—Houston 1960, writ dism’d), and Austin Lake Estates Recreation Club, Inc. v. Gilliam, 493 6 This is consistent with the Texas Trust Code, which provides for creation of a trust by “a property owner’s declaration that the owner holds the property as trustee for another person.” T EX . P RO P . C O D E § 112.001(1). 13 S.W.2d 343, 347 (Tex. Civ. App.—Austin 1973, writ ref’d n.r.e.)). I would hold that the terms of the property trust provision in the Dennis Canon, to which Good Shepherd agreed to be bound, expressly rendered the trust irrevocable upon Good Shepherd’s withdrawal from TEC. As noted above, the property trust provision in TEC’s Canons (with a substantially similar provision in the diocesan Canons) states: All real and personal property held by or for the benefit of any Parish, Mission or Congregation is held in trust for this Church and the Diocese thereof in which such Parish, Mission or Congregation is located. The existence of this trust, however, shall in no way limit the power and authority of the Parish, Mission or Congregation otherwise existing over such property so long as the particular Parish, Mission or Congregation remains a part of, and subject to, this Church and its Constitutions and Canons. (Emphasis added). This provision clearly limits a parish’s authority over church property by requiring that the parish be “a part of, and subject to,” TEC. Thus, if a parish withdraws from TEC, it necessarily loses such authority to the extent it is inconsistent with holding the property in trust for TEC and the Diocese. While the Dennis Canon does not use the term “irrevocable,” it nevertheless reflects Good Shepherd’s intent to make the trust irrevocable upon its withdrawal from TEC and was thus sufficient to create an irrevocable trust under Texas law. The Dennis Canon’s language distinguishes the property trust provision here from the national church’s trust provision at issue in From the Heart Church Ministries, which did not address the situation in which “a local church disaffiliates from the denomination.” 803 A.2d at 571. Without such language, the Maryland Court of Appeals declined to find that the trust was irrevocable, concluding that “[c]onsent to holding property in trust during the course of affiliation does not automatically constitute consent to relinquishing that property once the affiliation 14 terminates.” Id. Here, Good Shepherd did more than consent to holding the property in trust during the course of its affiliation with TEC; it also consented to its authority over the property being contingent on that affiliation. As a result, even if Good Shepherd had the authority to disaffiliate from TEC and the Diocese by proper vote under its Articles and Bylaws, I cannot agree with the Court that Good Shepherd could revoke the trust and maintain control of the property upon its withdrawal. See Bishop & Diocese of Colo. v. Mote, 716 P.2d 85, 108 (Colo. 1986) (holding that a local church’s articles of incorporation and bylaws that were similar to Good Shepherd’s, along with the relevant provisions of TEC’s Canons, “foreclose the possibility of the withdrawal of property from the parish simply because a majority of the members of the parish decide to end their association with [TEC]”). The Supreme Court confirmed in Jones v. Wolf that “before the dispute erupts, the parties can ensure, if they so desire, that the faction loyal to the hierarchical church will retain the church property.” 443 U.S. at 606. That is exactly what the parties did in this case. Good Shepherd agreed to hold the church property in trust for TEC and the Diocese, and any authority it otherwise had over the property terminated when it withdrew from TEC. 3. Good Shepherd Is Estopped from Revoking the Trust Alternatively, I believe the Episcopal Leaders prevail under the doctrine of quasi-estoppel. The Episcopal Leaders did not formally plead quasi-estoppel as an affirmative defense, though they did allege facts to support it.7 The summary judgment evidence establishes the applicability of the 7 The Anglican Leaders counterclaimed for a declaratory judgment regarding ownership and possession of the church property. In their First Amended Petition, the Episcopal Leaders argued that they “relied on the promises and statements” of Good Shepherd in “provid[ing] financial support” thereto. 15 doctrine and precludes Good Shepherd from claiming that it may revoke the trust in conjunction with its withdrawal from TEC. “Quasi-estoppel precludes a party from asserting, to another’s disadvantage, a right inconsistent with a position previously taken. The doctrine applies when it would be unconscionable to allow a person to maintain a position inconsistent with one to which he acquiesced, or from which he accepted a benefit.” Lopez v. Muñoz, Hockema & Reed, L.L.P., 22 S.W.3d 857, 864 (Tex. 2000) (citation omitted). Prior to the 2006 dispute, Good Shepherd: had promised conformity to TEC Doctrine and to TEC’s and the Diocese’s Constitutions and Canons; had accepted grants as well as no-interest and low-interest loans from TEC and the Diocese to assist in building the church; had declared that the church property was “secured from the danger of alienation . . . from those who profess and practice the Doctrine, Discipline, and Worship of this [Episcopal] Church”; and had accepted the conveyance of the property from the Diocese after the property trust provisions were added to TEC’s Canons. Having made these promises and accepted these benefits, Good Shepherd may not now contend it is free to disregard these positions because a majority of its members have voted to do so.