IN THE TITLE IV DISCIPLINARY MATTER

INVOLVING THE
RT. REV. JON BRUNO, RESPONDENT
ORDER OF THE HEARING PANEL

Nature of the Case

This case concerns the conduct of a bishop of the Church. It also involves a

congregation and property where that congregation worshipped. The bishop

properly exercises authority over that congregation and that property.

Nothing in this Order should be read as limiting or restricting the authority

of bishops over missions or congregations or property where they worship. To the

contrary, the Hearing Panel emphatically reaffirms that authority. Nor does this

Order create a path for congregants displeased with the decision of their bishops

over property to challenge or block those decisions merely by initiating Title IV

proceedings.

The case does involve conduct of a bishop who decided to sell mission

property. The Hearing Panel concludes that he did so without the previous consent
of the Standing Committee, that along the way he misrepresented certain matters,

and that certain features of his conduct are unbecoming of a member of the clergy.

By its very nature, the process by which the Hearing Panel reaches those

conclusions has entailed careful and detailed consideration of facts, positions,

contentions, testimony and documents; it is not a simple parsing of canons. All of

that evidence is directly related to the bishops decision to sell the property. It is

not a situation in which complainants attempt to use Title IV to block a bishops

proper exercise of his authority over property unrelated to the Title IV allegations.

The case also directly implicates new (as of 2009) Canon IV.14.6. That

canon grants Conference and Hearing Panels broad authority to provide any terms

which promote healing, repentance, forgiveness, restitution, justice, amendment of

life and reconciliation among the Complainant[s], Respondent, affected

Community and other persons. The Hearing Panel considers this a very salutary

and elastic remedy, and this case is an excellent example of why that canon is

necessary. From the inception of the case the Hearing Panel has understood its

role as one of representing Gods Church in a process that promotes those lofty

goals.

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 Finally, the matters before the Hearing Panel are material and substantial,

and of clear and weighty importance to the ministries of not only the Respondent,

Complainants and Community, but to the Ministry of the Whole Church.

History of the Case

The Acting Church Attorney submitted this case to the Hearing Panel by a

Statement of Alleged Offenses, dated June 24, 2016.

The Hearing Panel issued a Canon IV.13.2 Notice dated July 1, 2016. On

July 22, 2016, the President of the Disciplinary Board for Bishops obtained legal

counsel to the Hearing Panel pursuant to Canon IV.19.22. The Hearing Panel had

its first official meeting on August 11, 2016, at which meeting The Rt. Rev.

Herman Hollerith IV was elected President.

On August 26, 2016, the Complainants filed a Motion for Interim Order,

which the Church Attorney joined in and adopted on August 29, 2016.

On August 29, 2016, the Respondent, The Rt. Rev. J. Jon Bruno (Bishop

Bruno) submitted his Response to the Statement of Alleged Offenses and a

Motion to Dismiss or, in the alternative, to Stay Complainants Complaints. The

Church Attorney filed his Opposition to Bishop Brunos Motion to Dismiss or Stay

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on September 9, 2016. On September 12, 2016, Bishop Bruno submitted his

Response in Opposition to the Motion for Interim Order of Complainants and the

Joinder therein by the Church Attorney. All these papers were supported by

numerous exhibits.

On September 30, 2016, the President of the Disciplinary Board appointed a

clerk for the Hearing Panel pursuant to Canon IV.5.3(g).

On October 26, 2016, the Hearing Panel met with counsel for the parties in

Chicago, Illinois to consider the foregoing motions, which it denied on October 28,

2016.

Over the next several months, there were numerous procedural and

discovery matters and motions that the President and/or the Hearing Panel

conducted and disposed of pursuant to Canon IV.13. Written transcripts of

hearings on these matters were prepared and are in the record.

The parties exchanged documents, mandatory disclosures and final pre-

hearing disclosures pursuant to Canon IV.13.3 and IV.13.7. Each side deposed

two witnesses, pursuant to Canon IV.13.3(d), and legal counsel to the Hearing

Panel monitored the depositions by telephone. The President convened a

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Scheduling Conference and issued a Scheduling Order pursuant to Canon

IV.13.3(c).

The Hearing Panel conducted the hearing in Pasadena, California on March

28-30, 2017. Thirteen witnesses testified orally, personally and under oath or

solemn affirmation and subject to cross-examination, as required by Canon

IV.13.8. A written transcript of the hearing, comprising 911 pages, was created

and is in the record. At the hearing, the Hearing Panel received approximately 100

exhibits in evidence. After the hearing and receipt of the transcript, the parties

submitted post-trial briefs and proposed findings of facts, which were helpful to the

Hearing Panel and portions of which are in this Order in original or adapted form.

All proceedings before the Hearing Panel, except for its private

deliberations, have been open to the Church Attorney, Bishop Bruno, each

Complainant, any Injured Persons, and persons from the public, as required by

Canon IV.13.6. The Complainants have been entitled to be, and some of them

have been, present throughout and observed the hearings and accompanied by

other persons of their own choosing in addition to their own Advisors. The

Hearing Panel has closed no part of any proceedings to any persons or group of

persons. Bishop Bruno and his Advisor were present during the March 28-30

hearing.

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 Prior to the issuance of this Order, the Hearing Panel has afforded the

Presiding Bishop and Complainants each with an opportunity to be heard on the

proposed terms of the Order, as required by Canons IV.14.7 and IV.17.2. The

Complainants replied and the Hearing Panel has considered their views before

issuing this Order.

The Facts

The Church Attorney has proven the following facts by clear and convincing

evidence, as required and defined in Canons IV.2, IV.19.16 and IV.19.17. For the

sake of clarity and context, and for the most part, the Hearing Panel presents the

facts in chronological order.

1. Corporation Sole (Corp Sole) is a California corporation established

by the Bishop of Los Angeles in 1907. Ex. 203.1 It administers and manages the

property and affairs of certain properties of the Diocese. According to Bishop

Bruno, it is a single person corporation. The Bishop is the single person. Tr.

460. The Consolidated Financial Report of Corp Soles auditors for December 31,

2015 and 2014 describes Corp Sole as a unique form of nonprofit corporation,

operating with no directors or members other than the Bishop Diocesan and his or

1
Ex. refers to exhibits the Hearing Panel admitted in evidence. Tr, refers to the transcript of the March 28-30
hearing. F refers to the numbered paragraphs in the Facts section of this Order.

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her successors. Ex. 175, p. 5. A July 30, 2016 Report of a Special Committee of

the Diocese Convention Concerning Corporation Sole says Corp Sole has just one

incumbent the Bishop. Its existence is not contemplated by national

Episcopal Church polity, or consistent with National church policy [or] the

policies in the Constitution and Canons of the Diocese of Los Angeles. Corp

sole structures have been the subject of controversy or amendment in other

California dioceses. . . . in recent years. It operates without outside governance

oversight, and without transparency, and its lack of transparency and oversight

pose legal, financial, pastoral and other risks. In the Diocese of Los Angeles, the

Bishop has historically been allocated unilateral decision making power over Corp

Sole, its activities, and its assets. According to the 2016 Report, California

courts ruled definitively that corp sole entities were subject to the canons of a

diocese (the Diocese of Los Angeles was not a party in that case), and recent

litigation concerning the Diocese of San Joaquin confirmed that canon law has

supremacy over the corporation sole and the incumbent Bishop. Ex. 163, pp. 6-7.

2. In 1941, the Episcopal Diocese of Los Angeles formed a mission

church in Newport Beach, California, known as St. James.2 Ex. 22.

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At some point the name was changed to St. James the Great. The two names are used interchangeably in this
Order. The real property where the St. James congregation worships is located in Lido Village in Newport Beach.
That real property and related personal property are variously called St. James, Newport Beach, NPB and
Lido Island property in these proceedings and this Order.

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 3. In 1945, the Griffith Company donated land in Newport Beach to

Corporation Sole for church purposes exclusively. Ex. 13 paras 6-7. A church

was constructed and consecrated on the site, and the St. James congregation

applied for and received parish status. Ex. 61 para 52.

4. In 1993, St. James Parish obtained permission from the Diocese to

encumber the property with a loan and to undertake a major construction project

to build a new church and parish hall. Ex. 61 para 53. Cindy Evans Voorhees, not

yet ordained, was involved in the construction project as a liturgical consultant; she

designed the interior of the sanctuary. Tr. 202-03.

5. In 2001, Bishop Bruno consecrated and dedicated the new St. James

church complex. Ex. 61 para 53; Tr. 589.

6. In 2004, part of the St. James congregation disaffiliated from the

Episcopal Church and affiliated itself with the Church of Uganda. Ex. 61 paras.

70-74.

7. On August 22, 2004, Bishop Bruno wrote to the members of St.

James Episcopal Church in Newport Beach to let them know how disheartened

I am by the decision of your Rector, Wardens, and Vestry to leave the Episcopal

Church. Bishop Bruno stated that the consecrated buildings of your Parish are

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not the sole possession of the congregation. They belong to the whole Episcopal

Church and the Diocese of Los Angeles, where together we serve Christ in this

place. Soon we hope to return these properties to those faithful Episcopalians in

your community who will continue our common mission as a Diocese and a

Church. Ex. 60.

8. On September 7, 2004, Bishop Bruno, on behalf of himself and the

faithful congregants and true leadership of St. James Episcopal Parish in Newport

Beach, filed suit against the Anglicans. Ex. 61 para 1. In the complaint, which

Bishop Bruno swore to under penalty of perjury, he stated that each day

Defendants wrongful occupation of the Parish premises continues, Plaintiffs suffer

irreparable harm. The Parish was built over a 55-year period by and for

Episcopalians. The Episcopal Church's assetsincluding donations of money and

irrevocable trusts made on the condition that the Parish would remain forever an

Episcopal Parish, as its founders promised it wouldare being used to fund an

attack on the Episcopal Church. In the same complaint, Bishop Bruno stated that

the faithful members of the Parish are in exile, and that the Diocese is

subordinate to the Constitution, Canons, and General Convention of the Episcopal

Church. Ex. 61 paras 9-10, 14; Tr. 660-62.

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 9. Among those who remained faithful to the Episcopal church were

Dan and Betty Connolly and their daughter Kathi Liebermann. After the Anglican

takeover of St. James, the Connolly family worshipped at St. Michael & All

Angels Church. On the advice of Bishop Bruno, the Connolly family did not

change its registration from St. James. The Connolly family and others remained

members of the St. James Episcopal congregation. Tr. 444, 504 (just leave your

name there. You dont have to become a member of St. Michael and All Angels).

10. On July 18, 2007, John Cushman, of the real estate firm Cushman &

Wakefield, sent a letter to Bishop Bruno regarding a commercial property in

Anaheim, California, in which Corp Sole owned at the time a 25% interest. Ex.

41. Mr. Cushman is a parishioner in the Diocese. Bishop Bruno has known him

for 30 years. Tr. 520. Cushman recommended that Corp Sole acquire first another

25% interest in the property, and then the remaining 50% interest in the property,

as well as the ground leases. This course of action will give the Diocese 100%

ownership and will raise the property valuation near the $19.7 million mark.

Mr. Cushman set out several scenarios, including developing the property with an

office building, in which case the "projected resale" value of the property might

increase to $140 million. Ex. 41; Tr. 638-39.

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 11. Bishop Bruno testified that as early as November, 2008, while the

Anglican litigation was still active, he told Richard Zevnik (his counsel in this

case) of his intention to put the properties at issue, including the St. James

property, on the market after the litigation concluded. Tr. 491-92, 494.

12. In January 2009, the California Supreme Court decided a case

involving St. James and several other disaffiliated congregations in California.

Although the Supreme Court ruled in favor of the Episcopal Church on the general

issue, that the whole church rather than a single congregation controlled church

property, there were specific issues relating to St. James that required further

resolution in the lower courts. Episcopal Church Cases, 45 Cal.4th 467 (2009).

13. In March 2009, Bishop Bruno discussed with the Standing Committee

the four Los Angeles properties that were the subject of the ongoing Anglican

litigation: St. Davids, North Hollywood; All Saints, Long Beach; St. Lukes, La

Crescenta; and St. James, Newport Beach. Bishop Bruno requested and the

Standing Committee agreed that all four parishes should be changed to mission

status. The Standing Committee also gave its consent that, upon the conclusion of

legal proceedings, title to two of the properties would be held by Corp Sole: St.

Davids and All Saints. This transfer was to prepare the way for sale, for the next

sentence of the minutes states: if the sale of either or both of these properties

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occurs, it is the intent of the Bishop to establish a Mission Funding Initiative that

will fund new and on-going missions, after all litigation costs related to this issue

have been repaid to Corporation Sole. For St. James there was no transfer to Corp

Sole and no approval of sale. According to the minutes, Bishop Bruno noted that

it was too soon to discern what may occur. Ex. 35. Two members of the

Standing Committee remembered that there was a consensus that neither the

Diocese nor the Bishop would sell St. James if there was a viable congregation

there. Exs. 301, 302.

13A. In March 2013, the Diocese transferred title to the St. Davids

property to Corp Sole. Ex. 305.

14. In July 2013, as the Anglican litigation neared its end, Cushman &

Wakefield appraised St. James Anglican Church, as it was then known, for Corp

Sole. The appraisal estimated the value at $7.8 million. Ex. 63.

15. At about that time, Ted Forbath, Chief Financial Officer of the

Diocese, prepared a one-page legal expense summary of the Anglican litigation

as of July 1, 2013. Mr. Forbath included not only actual legal expenses of

$4,486,280, but added to these expenses three other items, totaling $5,066,544.

First, Mr. Forbath added an MSF Pledge Recoup, his estimate of the revenue the

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diocese did not receive because the four congregations ceased to make

contributions to the diocese. Ex. 45; Tr. 850-51. Second, Mr. Forbath added an

estimate of the cost to the diocese of the staff work on the Anglican litigation,

although the diocese did not hire any additional employees to handle the Anglican

litigation, and there were no time sheets or other documents to support this

estimate. Mr. Forbath testified that this was an approximation and a best guess.

Tr. 853. Third, Mr. Forbath added an estimate of the income the diocese would

have obtained if it had not incurred the legal expenses or lost the donations. Tr.

837-38. In June 2015, Bishop Bruno told the Mayor Pro Tempore of the City of

Newport Beach that one reason he had to sell St. James was to help recover the $9

million in legal costs incurred in the Anglican litigation. Ex. 29.

16. In the summer of 2013, Corp Sole sold one of the four properties

recovered through the Anglican litigation, St. Davids North Hollywood, for $5

million. Ex. 66; Tr. 634-35. At about the same time, Corp Sole entered into a

long-term lease, with option to purchase, for All Saints, Long Beach. The option

was exercised and the property sold for $3.5 million. Tr. 826. Thus, through the

St. Davids and All Saints sales, Corp Sole recovered $8.5 million.

17. After the California Superior Court ordered the Anglicans to return St.

James to the Episcopal Church, Bishop Bruno decided that he would re-open the

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church as an Episcopal Church and he appointed the Rev. Canon Cindy Evans

Voorhees as vicar of the mission congregation. In announcing these decisions to

the diocese and inviting people to attend the first services, Bishop Bruno stated that

those who gathered there would look back on the history of St. James and look

forward to the ministry of St. James the Great in the years to come. Exs. 22, 64

and 65; Tr. 425-28.

18. The parties to the St. James civil litigation reached a settlement

agreement on the details of how the Anglicans would return St. James to the

Episcopal Church. One provision in the agreement required the Anglicans to pay

about $60,000 to the Episcopal diocese. This sum was set aside to help with the

start-up costs of the St. James the Great congregation. Tr. 505-506.

19. In a September 12, 2013, email to the diocese, announcing that Canon

Voorhees would be the vicar of St. James the Great, Bishop Bruno described her as

an experienced pastor. Ex. 22. Since her ordination, in 2005, she had served in

three different churches, ranging from a suburban congregation in Orange County

to an inner-city cathedral in Los Angeles. She was elected to the Standing

Committee and the Board of the Corporation of the Diocese. Ex. 36; Tr. 198-201.

She had also worked as a liturgical consultant for many years in dozens of

churches, in the midst of construction and re-construction projects. Tr. 196-97.

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 20. In his September 12, 2013 email to the diocese, Bishop Bruno

reflect[ed] back to the events of 1945 referred to in paragraph 3 above and

referred to his forward-looking vision for the Congregation. Ex. 22.

21. In his September 12, 2013 email to the diocese, Bishop Bruno did not

mention that five years earlier he had decided to sell the property. (See paragraph

11 above.)

22. On October 6, 2013, just before the first service, Bruce Bennett, an

experienced businessman and Episcopal Church leader (Ex. 68; Tr. 51-52), who

had agreed to serve as Bishop's Warden, met with Bishop Bruno and Canon

Voorhees. Bishop Bruno suggested, and the Bennetts agreed, that Mr. Bennett and

his wife Merilee Bennett should serve as co-wardens. For a year after the re-

opening of the church, the Bennetts worked approximately eighty hours a week on

various tasks, ranging from fixing toilets and the elevator to cleaning out the pool

at the vicarage so that it could be rented out to provide income for the

congregation. Tr. 46-47, 53-57.

23. Bishop Bruno, assisted by two other Bishops, including Bishop Mary

Glasspool, conducted the services on October 6, 2013 to re-open St. James the

Great as an Episcopal Church. Ex. 70A.

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 24. On October 13, 2013, Bishop Bruno returned to St. James the Great,

where he led the congregation in Sunday morning services. Ex. 70. Bishop Bruno

testified that it was my intent to encourage people to do their best to assist in the

formation of this new congregation. Tr. 511-12.

25. One of the models for St. James the Great was St. Lukes, La

Crescenta, which had re-opened as an Episcopal church in 2009. In an email to

Canon Voorhees, which she shared with Mr. Bennett, the vicar of that

congregation described how, rather than using a traditional bishops committee, he

worked with teams. Ex. 71. Canon Voorhees adopted this team approach for St.

James the Great, and kept Bishop Bruno informed of the congregations progress.

Tr. 62-64, 176-77, 251-52.

26. Patrick DiGiacomo, a chef who had served in the Marines and had a

career in finance, was one of the first team leaders recruited by Canon Voorhees.

He testified that he and his business partner agreed to rent the churchs kitchen, use

the kitchen both to cook Sunday meals for the congregation, and as a base for their

catering business. Mr. DiGiacomo described the kitchen as a ministry of the

church: providing a place for out-of-work chefs to get back on their feet; serving

as a base for missions to the local homeless shelter; serving to teach autistic

children how to cook; bringing members of the congregation together. On Sunday

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mornings, Mr. DiGiacomo and the others involved would serve meals to 150 or

160 people, and nobody would ever leave. They would just stay for a long time.

Tr. 167. Mr. DiGiacomos meeting with Canon Voorhees really and truly

changed my life; he went from being a lapsed Catholic to a faithful member of an

Episcopal congregation. Tr. 159-72.

27. On November 13, 2013, Canon Voorhees sent by email to Mr.

Forbath and David Tumilty, Chief Operating Officer of the Diocese, a forecast

budget for St. James the Great for 2014. She projected that there would be

$112,000 of plate and pledge in 2014 and total income of $256,000. Mr. Forbath

responded that the handout looks good and offered to make copies for her for

distribution at the upcoming meeting of the Board of the Corporation of the

Diocese the next week. Ex. 73.

28. In late 2013, Canon Voorhees recruited Evangeline Andersen, an

inactive certified public accountant, to head the St. James the Great finance team.

Ex. 173. Ms. Andersen knew that the assignment would require a lot of work, but

she explained she knew that she had to serve when she learned that Canon

Voorhees herself was serving without any compensation. Tr. 84-85. The finance

team consisted of several seasoned financial professionals: Mr. Bennett, David

Moore, Helen Timpe and Bob Voorhees. Tr. 85. Ms. Andersen testified that she

17
and her family started attending church regularly and her husband was baptized.

Tr. 81-82.

29. In January 2014, Ms. Andersen presented a vicars vision to the St.

James the Great congregation. In an effort to engage and challenge the

congregation, she presented three alternative budgets for St. James for calendar

year 2014, which she described as the 2 am email budget, the 2014 transition

budget and the functional parish budget. She noted in the 2 am budget that at

present the church had no money from pledges and no money for staff salaries.

She noted that the church already had some creative solutions in place, including

rental income from the parish vicarage and the kitchen lease. She challenged the

members of the congregation to commit their time, talent and treasure to St. James

the Great. She reminded them that diocesan contribution should not be counted

on. We must become self-sustaining. Ex. 181; Tr. 88-93.

30. After he appointed Canon Voorhees as vicar in September 2013 and

opened the church in October 2013, Bishop Bruno never informed any of those

involved in starting up St. James the Greatincluding the Vicar, the Bishops

Wardens or the new donors of operating funds and capital improvements that five

years earlier, in 2008, he had decided to sell St. James the Great, or that he was

then considering selling St. James the Great. When Mr. Bennett was asked

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whether Bishop Bruno said anything like I may sell this place in a year, he

responded: No. Quite to the contrary, he indicated to us that this was a challenge

for us to go out and build a parish and build a congregation and make things

happen for the long run. Mr. Bennett estimated that he sent or received about two

thousand emails with Bishop Bruno and his immediate staff: Mr. Tumilty, Mr.

Forbath, and Clare Zabala Bangao (Bangao), administrator for mission

congregationsand there was not a word about sale in these emails. Tr. 48-49,

58-59. Canon Voorhees moved to Newport Beach, to be closer to the

community, and she did not move into the rectory, so that the rectory rental

income could support the congregation. Tr. 56-57, 234-36. Ms. Andersen testified

that some families accepted the challenge to become founding members of St.

James the Great, to contribute $25,000 or more per year, even though there was no

t-shirt or other recognition. Tr. 100-01.

31. On January 28, 2014, Canon Voorhees emailed Ms. Bangao a request

for bylaws for St. James the Great. Ex. 77.

32. On February 25, 2014, Canon Voorhees emailed Ms. Bangao a second

request for bylaws for St. James the Great. Ms. Bangao responded that the diocese

was still working on the by-laws template for mission congregations. Ex. 78.

On this same day, Ms. Bangao sent to Canon Voorhees the missions manual for

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the diocese, stating here you go. Ms. Bangao did not, in either of these emails,

ask Canon Voorhees for her monthly financial reports. Ex. 3; Ex. 4.

33. On February 28, 2014, St. James the Great submitted its parochial

report for 2013. The report showed that, after a few months of operation, St. James

the Great had an average Sunday attendance of 92 people, plate and pledge income

of $40,000, and more than $55,000 in its bank account. Ex. 11.

34. One of the parishioners at St. James the Great, Michael Strong, was

also a parishioner in 2014 at St. Michael & All Angels, where he knew Richard

Zevnik, at the time a vice chancellor of the bishop. Mr. Strong and Mr. Zevnik

talked from time to time about the Anglican litigation, and especially about what

Mr. Strong called the estoppel issue: why a 1991 letter by a prior bishop did not

preclude Bishop Bruno from claiming the St. James property. In the course of this

discussion, in June 2014, Mr. Zevnik wrote to Mr. Strong that no one, including a

bishop, can act contrary to the canons, which require that any alienation of

property or property rights requires the approval of the Standing Committee, acting

on the recommendation of the Board of the Corporation of the Diocese. So,

leaving aside the issue whether [Bishop] Borsch's signature on the [1991] letter

was procured fraudulently, he had no power to do what they asserted he did. Ex.

82. Mr. Strong testified that this was consistent with what Mr. Zevnik told him at

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the time; that the diocese could not sell or alienate property without Standing

Committee approval. Tr. 431-32. In his testimony at the hearing, Mr. Zevnik did

not address this exhibit or attempt to contradict Mr. Strongs testimony. Tr. 864-

65.

35. On July 1, 2014, the St. James finance team held one of its periodic

meetings. The agenda shows that the team discussed several financial documents

and issues, including the year-to-date financial results. Among other documents it

reviewed, a balance sheet showed that the congregation had more than $100,000 in

its checking accounts. Ex. 182; Tr. 99.

36. On July 31, 2014, Canon Voorhees emailed Ms. Bangao and Bishop

Bruno a request for a grant for 2015 of $48,000, rather than the $60,000 received

in 2014. The documentation included actual results for the first five months of

2014 showing $156,046 in revenues, projected to be $349,680 by year-end. This

same email included the budget for St. James the Great for 2015, predicting

revenue in 2015 of $387,000, including $105,000 of plate and $170,000 of pledge.

On the expense side, the 2015 budget predicted a housing allowance for the vicar

of $36,000, along with related pension and education costs. The narrative budget

explained that members feel strongly that we should develop staff and pay them a

fair wage and that the budget included a housing allowance for the vicar of $3,000

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per month based on the documented priority to pay clergy right after Mission

Share pledge as well as the congregation feeling a sense of moral responsibility to

pay some form of compensation. Ex. 10. This was in accord with the Missions

Manual, which declared that the second priority, after the 10% mission share

pledge was clergy compensation. Ex. 3 page 15. In her cover note, Canon

Voorhees said please let me know if there is anything else you need. Ex. 10.

Canon Voorhees received no reply asking for monthly financial information.

37. On August 12, 2014, Canon Voorhees reported to the finance team

that a recent outside audit of St. James the Greats financial practices went well.

She noted that the audit team had some minor recommendations, such as that St.

James should make an inventory of the personal property in the church complex.

The audit team overall felt that there were no inconsistencies and we reported

everything to the diocese on time. Ex. 183.

38. In September 2014, Canon Voorhees delivered a PowerPoint

presentation to Bishop Bruno, Mr. Tumilty and the Board of the Corporation of the

Diocese, in which she discussed in detail the progress of St. James the Great.

Canon Voorhees described some of the innovative ministries of St. James the

Great: the kitchen and cooking classes, Holy Coding classes, and the team

structure. She noted that St. James would receive decreased diocesan support

22
in the next year and hoped by the end of the next year to be independent of

diocesan support. Ex. 46. The Board, according to Canon Voorhees, was very,

very excited about the progress of St. James the Great, thought it was amazing,

and she got a long clap at the end. Bishop Bruno told her very good. Great

job. Tr. 257-58.

39. On October 14, 2014, Canon Voorhees received a telephone call from

a John McMonigle, a local real estate broker. As she explained in an email to Mr.

Tumilty and Mr. Forbath, copied to Bishop Bruno:

John McMonigle just called the church and asked for Teds [Forbaths]
phone number. [He] said he had talked to Ted about the sale of the church
property and had the information for him but lost his number. I know John
McMonigle. Is there something I need to know? Because I am devoting my
life to this parish and want to know if I am wasting my time. Please advise.

Ex. 21. None of the three recipients answered this email. Canon Voorhees was

pretty shook up and called Mr. Forbath, who said he was not going to get between

a priest and her bishop. She also called Mr. Tumilty, who said he didnt know

anything about it at all. Tr. 277-78. Neither Mr. Tumilty nor Mr. Forbath

alerted [Canon Voorhees] to the fact that there were discussions out there about

possible sale. Tr. 280. When asked about this email at the hearing, and whether

he was concerned that Canon Voorhees was devoting my life to this parish and

want[ed] to know if Im wasting my time, Bishop Bruno said if I answered every

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email where somebody has a concern or worry, and its not addressed to me, I

would not sleep. Tr. 618-19.

40. On December 3, 2014, the St. James finance team met. The agenda

shows that the number of pledges had increased from 24 to 42, and that the amount

pledged for the next year exceeded the budget, $234,000 rather than $170,000.

One item on the agenda was to consider a year-end lump-sum payment to the vicar

because working as a volunteer in your place of employmentits not the right

thing. So the finance committee (without Canon Voorhees husband, Bob

Voorhees) approved a payment of $25,000. Ex. 184; Tr. 126-27. Even after this

one-time payment, St. James ended the year with more than $120,000 in its bank

accounts. Ex. 12. When asked about the financial progress of St. James, Ms.

Andersen testified I thought we were doing great. To be honest. Like to go from

zero to $250,000 in pledges, like, I thought we were doing awesome. Tr. 116.

41. On January 5, 2015, Canon Voorhees sent Ms. Bangao what she

called a third request, asking whether the diocese had approved the request for

$48,000 in diocesan aid. She said, I am trying to run a balanced budget. Ms.

Bangao responded the same day that the request had been approved. Ex. 93. Ms.

Bangao did not request monthly financial information.

24
 42. On January 28, 2015, after several months of work on the parking

issue, Canon Voorhees emailed Mr. Tumilty, Mr. Forbath and Chancellor James

Prendergast to summarize the status of the parking arrangement. Included in her

email was a letter to Bishop Bruno, in which Canon Voorhees explained the

history, the various parties, the issues and benefits of the proposed parking

arrangement. A local developer had agreed to provide parking spaces to the

church on Sunday mornings and in return the church would provide the developer

with parking spaces during the week. The developer would pay the church $6800

a month for the use of its parking spaces. She attached to the email the most recent

draft of the parking license agreement, as revised by a local real estate lawyer,

working in consultation with Mr. Prendergast, who had approved the agreement.

Ex. 53.

43. On February 3, 2015, Canon Voorhees sent another email to Mr.

Tumilty, Mr. Forbath and Mr. Prendergast about the parking arrangement. She

pressed them to review and respond; I would really like to wrap this up as soon as

possible. Ex. 53.

44. At about this same time, Canon Voorhees had what she recalled as an

odd conversation with Bishop Bruno. He asked her: If you had to sell either St.

James the Great or St. Michael & All Angels, which would you sell? I told him

25
neither one. They are both viable with the right leadership. Bishop Bruno asked

her to think about the matter. When they next talked about the issue, Bishop Bruno

told Canon Voorhees Dont worry. Im not doingIm not selling St. James.

Im not doing anything with it. Tr. 280-81, 283. Bishop Bruno could not recall,

then denied, that he had such conversations with Canon Voorhees, Tr. 520-21.

Canon Voorhees testimony on this issue is confirmed by two emails among

Bishop Brunos senior staff members, those of February 4 and February 24, 2015,

discussed below.

45. On February 4, 2015, Mr. Forbath emailed Mr. Tumilty a draft email

to the Layne Foundation, seeking a loan of $6.3 million to purchase an additional

interest in the Anaheim property. The draft email offered, as security, the St.

James property and explained that, Confidentially speaking, the Bishops Office

is putting in place a 1-2 year plan that will involve consolidating our two churches

in the area: St. James the Great (Newport Beach) and St. Michael & All Angels

(Corona del Mar). The outcome of that consolidation will involve selling one of

the two churches and realizing substantial proceeds . . . . At this point, the

preference is to sell the Newport Beach site. Mr. Forbath wrote: my sense is that

it would be best to simply state that the NPB church [St. James] will be sold and

not be fuzzy about which church will be sold... Ex. 55. The St. James

26
congregation had no idea at this time that the Bishops Office had decided to sell

St. James or to consolidate the two congregations.

46. On February 9, 2015, Canon Voorhees emailed Ms. Bangao the

annual 2015 budget for St. James the Great. Ex. 95. The attached budget

worksheet showed that St. James expected to have in 2015 total revenue of almost

$500,000, of which $48,000 would be diocesan support. The budget also showed

that the congregation expected to send back to the diocese, in the form of mission

share pledge, $40,200, 10% of plate and pledge. On a net basis, then, St. James

the Great would cost the diocese less than $10,000 during calendar year 2015. Ex.

186.

47. On February 10, 2015, in response to the St. James the Great budget,

Ms. Bangao asked Canon Voorhees what is the latest on the parking lot? Ms.

Bangao did not ask Canon Voorhees to provide monthly financial information.

Canon Voorhees responded: You tell me Clare. I have been trying to get the

lease approved for 5 months. I have now lost about $35,000 in income. . . . I have

done 5 revisions, hired a real estate attorney to help write it, had a conference call

with everyone and we agreed on a strategy and it is still on their desk. Ex. 95.

27
 48. On February 13, 2015, Tim OBrien of Legacy Partners Residential,

LLC (Legacy), the commercial real estate firm that would, in April, 2015, sign

an agreement to purchase the St. James site, sent an email to John Cushman

summarizing a discussion regarding Anaheim & Lido Village. Mr. OBrien sent

to Mr. Cushman an aerial photo of the St. James property, noting that he lived on

Lido Isle and thus drove by the site every day. Its a terrific site and were

interested in working with you on this one as well. Mr. Cushman noted in

handwriting on the printed copy of the email that he called Bishop Bruno to

discuss Lido on February 22, 2015. Ex. 96. Mr. Tumilty testified Bishop Bruno

told Mr. Cushman that we had received previous offers on the St. James property

none of which were of interest, and at the right price, Bishop Bruno would

seriously consider the sale of the property. Tr. 558.

49. On or about February 22, 2015, Bishop Bruno had a conversation with

Mr. Cushman in which Bishop Bruno told Mr. Cushman that although he had

received offers to purchase the St. James property, they were not of interest to him

but that at the right price he would seriously consider selling the property. Tr. 554,

560-61; Ex. 96.

50. On February 24, 2015, Mr. Forbath emailed Mr. Tumilty,

summarizing a conversation between Mr. Forbath and Canon Voorhees, in which

28
she reported that Bishop Bruno had told her that he would not sell St. James the

Great. (Ex. 56).

51. On March 19, 2015, Bishop Bruno, through Corp Sole, entered an

agreement with Bank of America to purchase an additional fifty percent interest in

commercial real estate in Anaheim. Ex. 40; Ex. 99. As of March 2015, Corp Sole

already owned a fifty-percent interest in the Anaheim property, so this purchase

agreement would give Corp Sole complete ownership. Ex. 99, recital B. The

agreed purchase price was $6.3 million and the closing date was scheduled for

early July 2015. Ex. 99 (Effective Date March 19, 2015; Contingency Date ninety

days after Effective Date; Closing Date fifteen days after Contingency Date).

52. Corp Sole did not have in its bank accounts in March 2015 $6.3

million in cash to complete the Anaheim purchase. The cash balance as of

December 31, 2014, was about $3 million. Ex. 175, p. 3. When asked about how

Corp Sole would fund the Anaheim purchase, Bishop Bruno did not mention cash

in the bank: he mentioned only the sale of St. James the Great, a loan from a

bank, or a donation. Tr. 579-80.

53. On March 20, 2015, there was a meeting at the Cushman & Wakefield

offices to discuss the Lido Property. Those who attended included Mr.

29
Cushman, Bishop Bruno, Mr. Tumilty and Mr. Forbath. Mr. Cushman and his

colleagues agreed on the splits for the compensation that they expected to

receive from the sale of the St. James the Great property. Ex. 98.

54. On March 25, 2015, St. James the Great submitted its parochial report

for 2014. The report showed that, in its first full year of operation, St. James the

Great had total revenues of $467,169, of which $60,000 was diocesan support.

The report showed that, as of the end of 2014, St. James the Great had $122,487 in

its bank accounts. Ex. 12.

55. On April 1, 2015, Bishop Bruno received a written offer from Legacy

to purchase the St. James site for $15 million. Ex. 100.

56. On April 9, 2015, Mr. Forbath emailed Mr. Tumilty, raising a concern

about section 3.2 of the draft agreement to sell St. James the Great. The buyer

can extend for 30 days basically at the 11th hour, just before the planned closing.

We really would need to know earlier since a 30 day closing delay will have a

significant impact on how the Anaheim purchase is funded. Mr. Tumilty

responded to Mr. Forbath, with copies to Bishop Bruno, John Cushman, and Pam

Andes, the outside lawyer for Corp Sole on the transaction: Thanks Ted. Your

concern is legit. Pam can you see if Buyer can back off this item? In effect it

30
extends the due diligence period to within 5 days of the intended closing. Mr.

Cushman forwarded the email to Tim OBrien of Legacy, saying I wanted to give

you a heads up on this issue. We need to make this problem go away. On the eve

of signing the agreement to sell St. James, Bishop Brunos senior staff was worried

that a delay in the closing of the St. James sale would have a significant impact

on funding the Anaheim purchase. Ex. 23. The agreement was apparently

modified to address Mr. Forbaths concern. See Ex. 25 especially section 3.2.

57. On April 10, 2015, Bishop Bruno signed the agreement to sell the St.

James property to Legacy. Ms. Andes, in her cover email distributing the

agreement, described it as fully executed by the parties and effective. The

closing date was at first set for June 24, 2015. Ex. 25. Bishop Bruno testified that

the due diligence and contingencies in the contract were opportunities for the

buyer, not Corp Sole, and that if the buyer were satisfied and tendered him a

$15,000,000 check it was a done deal. Tr. 575-76.

58. On April 13, 2015, Bishop Bruno informed Canon Voorhees that he

had sold St. James the Great. He told her that it was a business decision and that

it was a done deal. Canon Voorhees was stunned and felt deceived and

used. She said It was just so cold, and it was pretty brutal. Bishop Bruno

instructed Canon Voorhees that she could not tell anyone, other than her husband,

31
about the sale of St. James the Great. Tr. 285-86. Canon Voorhees obeyed that

instruction.

59. Bishop Bruno testified that in the same conversation he told Canon

Voorhees that he wished to be the person who informed the congregation of his

decision because he knew it would be traumatic and the fact of life is I said if

theres any bad news to tell anybody, Im going to tell it to them. Tr. 525-26.

60. At about this same time, Bishop Bruno informed his senior staff,

including Bishop Mary Glasspool, in their weekly meeting of the sale of St. James

the Great. On April 16, 2015, Bishop Glasspool called the Rev. Melissa

McCarthy, then President of the Standing Committee, and asked her whether the

Standing Committee had approved the sale. The Rev. McCarthy was not aware,

before this call, of the sale. When Bishop Glasspool learned that the Standing

Committee had not approved the sale, she urged Rev. McCarthy to oppose the sale,

and to talk with the chancellor of another diocese. Instead, Rev. McCarthy

informed Bishop Bruno that Bishop Glasspool was trying to undermine what the

bishop diocesan was doing. Tr. 706-09.

61. Bishop Bruno met with the Standing Committee on April 22, 2015.

The minutes of that meeting (Ex. 303) do not mention St. James.

32
 62. At about this time, Bishop Bruno offered Canon Voorhees a new

position, with a salary of $111,000 per year, as liaison between the diocese and the

Compass Rose society. Tr. 286-89; 527-28.

63. On May 11, 2015, Canon Voorhees sent an email to Bishop Bruno

outlining topics to discuss with him that day, including the proposed Compass

Rose liaison position. She asked, among other questions about the Compass Rose

position, what the Bishop Brunos goals were, and whether she would be a member

of the board of the Compass Rose Society. Ex. 18.

64. On May 11, 2015, Mayor Pro Tem Diane Dixon met, at their request,

with Tim OBrien of Legacy and Philip Bettencourt, a local real estate consultant.

Mr. OBrien and Mr. Bettencourt presented their plans for the St. James site,

including drawings showing the proposed townhouses on the St. James site.

Mayor Dixons reaction was Really? Youre going to tear down the church to do

this? Mayor Dixon predicted that the plan to tear down the church and put up

townhouses would be controversial in the community. Tr. 401-03.

65. On May 13, 2015, Mr. Tumilty and Mr. Forbath discussed the use of

the proceeds from the St. James sale. Mr. Tumiltys notes show that he anticipated

fees and costs of $1 million in connection with the sale, including the fee owed

33
to Cushman & Wakefield for its work on the sale. Ex. 44. Bishop Bruno did not

dispute that Cushman & Wakefield was to receive $550,000 as its commission for

the $15 million sale. Tr. 572. Mr. Tumiltys notes show that the intention was to

use $6.3 million out of the $15 million proceeds from the St. James sale to fund the

Anaheim purchase. Ex. 44; Tr. 573-74.

66. On May 17, 2015, Bishop Bruno worshipped with the St. James the

Great congregation. At the coffee hour after the service, he informed the

congregation that he had sold the church. Mr. Bennett recalled that the

congregation was stunned. In his words, there was indignation. There was

anger. There were tears. Tr. 68-69. Ms. Andersen recalled Bishop Bruno saying

that the expenses were high and it is not sustainable; she knew from her own

work that this was not correct. Tr. 129-30. Someone asked whether there was

some financial crisis, whether the diocese needed the funds immediately, to which

Bishop Bruno responded no, we dont need the money. Tr. 131. Bishop Bruno

testified that he told the congregation that he would establish a trust, in the name of

St. James the Great, with $6.3 million for further mission work in the diocese and

that he would also provide $1 million of financial assistance to the St. James the

Great congregation. Tr. 569-71. Neither of these was mentioned in the use of

proceeds notes that Mr. Tumilty prepared a few days before. Compare Ex. 44.

When Bishop Bruno mentioned parking as one reason he had to sell the church,
34
Bruce Bennett challenged him. I knew for a fact that the parking issue had been

resolved, and that if he had real reasons to sell the property, he should give us real

reasons and not red herrings such as that. Tr. 66. Kathi Liebermann was not in

the room; when she learned of the sale she felt like we were his faithful followers

who had grew the church and did exactly what he asked us to do and then just with

no warning [he] came in and announced the sale. I was blindsided. Tr. 448.

67. Michael Strong was also at the May 17, 2015 meeting. He recalled

Bishop Bruno stating, Since the property was held in Corp Sole, he didnt need

any approval to sell it. He had complete power of it. Tr. 434.

68. Starting on May 18, 2015, Canon Voorhees sent a series of pastoral

letters to her congregation. She explained that the parish was in peril, and she

was overwhelmed with pastoral care so she saw the letters as an important part

of her pastoral role; she wanted to communicate with her congregation, to keep

everyone on the same page. Tr. 293-294, 393; Ex. 179 (third pastoral letter).

69. On May 19, 2015, Bishop Bruno addressed his decision to sell St.

James in a memorandum to the Members of the Corporation of the Diocese.

Bishop Bruno stated that two major considerations have changed the outlook for

the future of the Newport Beach property. First, the church plant is out of

35
compliance with city code due to the lack of 40 parking places to serve the

property. While the church has been operating with a conditional-use permit,

resolution of the problem would require the purchase of additional land that is

unavailable in blocks where a multimillion-dollar boutique hotel is under

construction. Ex. 26.

70. On May 19, 2015, Canon Voorhees sent a further email to Bishop

Bruno and Mr. Tumilty regarding Compass Rose and closure of St. James. She

noted that Bishop Bruno made changes on Sunday morning, May 17, so that we

will need to discuss what is what today, i.e., closing date, compensations, letter to

parishioners. Ex. 18.

71. According to the minutes of the Standing Committee, at its May 27,

2015 meeting several items concerning St. James were brought forward to be

brought to the attention of the Bishop. The only action concerning these items

recorded in the minutes is that the Committee shared with Bishop Bruno their

understanding of his reasons to sell the property in Newport Beach and will

support Corporation Soles action. There are references to handouts enclosed

with the original copy of the minutes, but no handouts were introduced at the

hearing. Ex. 304.

36
 72. On May 31, 2015, Mayor Pro Tem Dixon announced that the

proposed sale of St. James the Great would be one topic for her next town hall

meeting on June 15. Ex. 179 page 4 (email from Diane Dixon). Mayor Dixon was

hearing from concerned constituents, such as a Catholic resident of Lido, who

wrote to Mayor Dixon on May 31 that although we worship elsewhere we firmly

support the very powerful presence of this fine church. It is a constant reminder of

God amidst our increasingly secular and troubled area Ex. 179 pages 170-004,

005 (email to Diane Dixon); Tr. 410 (Im getting all these letters regarding the

church).

73. On June 3, 2015, Bishop Bruno addressed the sale of St. James

through an email to the diocese. Bishop Bruno stated that this decision was

entered prayerfully and practically given the reality that the Corporation Sole and

the Corporation of the Diocese can no longer provide assistance for operating

expenses. . . [and] the sale proceeds also offer a considerable asset for investment

in future mission and clergy support within the Diocese of Los Angeles. Ex. 123.

74. On June 5, 2015, Bishop Bruno wrote a letter to Mayor Pro Tem

Dixon concerning the sale of St. James the Great. He wrote that while it has been

a complex decision to enter into a sale agreement for the property owned by the

Bishop as Corporation Sole, I have done so knowing that the time is right to

37
liquidate this asset for the benefit of the ongoing mission within the church in our

diocese. Operating expenses were no longer sustainable at as much as $300,000

annually, and especially after $9 million in legal costs related to securing four

parish properties at which members had disaffiliated from the Episcopal Church.

While we recognize the dedicated efforts of the current clergy and re-starting

congregation of St. James the Great, we must move forward at this time. Ex. 29.

Mayor Dixon testified that she had no context to consider the claimed operating

expenses because she did not know the revenues of the church. Her reaction was

that Bishop Bruno was trying to build a case for why he wants to sell the

property. Tr. 407-08. Bishop Brunos letter did not mention the revenues of St.

James the Great, nor did he tell Mayor Dixon that the diocese had already

recovered $5 million through the sale of one of the former Anglican churches, and

stood to recover $3.5 million through the lease-sale of another. When asked at trial

about the accuracy of the $300,000 amount, Ms. Andersen testified that it was not

accurate. "In the first year, right, in 2014, pledgers were giving $150,000 of that

$300,000. And in the second year we had the stewardship campaign and we had a

budget that said pledgers were going to give 250,000 of that $300,000. So I

don'tI don't agree with the sentence. I dont agree that that is unsustainable.

That isthat isI mean thats amazing financial growth. Imagine what we could

have done." Tr. 133.

38
 75. On June 8, 2015, Bishop Bruno discussed both the proposed sale of

St. James and the proposed purchase of the Anaheim interest with the Standing

Committee. The meeting was a special meeting, called by the President at Bishop

Brunos request. Tr. 713. The Standing Committee approved a motion to support

Bishop Bruno in his endeavors with the sale of the Newport Beach property, and to

concur with his decision, acknowledging that the Standing Committee has no

jurisdiction over Corp Sole. Ex. 19. Both Bishop Bruno and the Rev. Melissa

McCarthy, the President, testified that in their view the Standing Committee had

no authority over Corporation Sole. Hearing Tr. 716-17; Bruno Depo. Tr. 17 (Ex.

299) (Question: Did you have an understanding . . . in June of 2015 that the

Standing Committee had no authority to help, to decide, or no right to decide, on

the sale of a church if it were owned by Corp Sole? Answer: That was my

understanding). The Rev. McCarthy could not remember reviewing any

documents about the St. James sale at the June 8 Standing Committee meeting. Tr.

721-22.

76. On June 9, 2015, Bishop Bruno and Mr. Tumilty met at St. James the

Great with Canon Voorhees and four members of the transition committee for St.

James. The group discussed, among other issues, whether Canon Voorhees could

remain the vicar of St. James the Great; Bishop Bruno said that she could

continue to serve as Vicar for the ongoing congregation. The group also
39
discussed whether the congregation could remain in the building after the proposed

June 28 final service date; Bishop Bruno said that this would require the consent of

the buyer, Legacy, and later said that Legacy was not interested in having any

discussions with the congregation. Tr. 302-04; Ex. 17.

77. During this time, Bishop Bruno told Canon Voorhees Youre letting

your pastoral brain get in the way of your business brain. Tr. 301.

78. On June 10, 2015, Ronald Pierce, a lawyer for the Griffith Company,

wrote to Bishop Bruno to remind him of a 1945 church use restriction on the St.

James site. Mr. Pierce wrote that Griffith Company never released, and never

intended to release, the covenant, condition, restriction for church purposes

exclusively for the central church building lot or the adjoining lots from their

ancillary role to serve church purposes solely. That is what Griffith Company

intended in 1945, 1984, and its purpose continues the same today and beyond. Ex.

125.

79. On June 12, 2015, Corp Sole and Legacy amended the Purchase and

Sale agreement, to allow time for determining and addressing issues related to the

matters and claims described in the June 10 Pierce Letter. Ex. 130.

40
 80. On June 15, 2015, Bishop Bruno wrote a letter to Tom Foss, President

and CEO of the Griffith Company. Bishop Bruno wrote that the June 10 letter

has serious implications for two pending real estate transactions that are scheduled

to close in the coming days of June. Bishop Bruno urged Griffith Company to

change its position about the 1945 church use restriction on the St. James site, so

that the Legacy sale transaction could close. Bishop Bruno warned that the

position taken in the June 10 letter could result in millions of dollars of damages to

the Church. Ex. 24. Bishop Bruno testified at his deposition and at the hearing

that the two transactions referenced in his June 15 letter were the St. James and

Anaheim transactions. Hearing Tr. 642-43.

81. On June 15, 2015, Mayor Dixon held her town hall meeting, at which

the main topic was the proposed sale and demolition of St. James the Great. The

room was completely filled, standing room only. Tr. 411. Some of those

present were members of the congregation but others, Mayor Dixon believed, were

simply members of the community. Tr. 412-13.

82. On June 16, 2015, Bishop Mary Glasspool spoke with Canon

Voorhees in the womens room at diocesan headquarters. At the hearing, in

response to questions from Bishop Brunos counsel, Canon Voorhees testified that

Bishop Glasspool told her that she was very sorry for what was happening to St.

41
James the Great. Tr. 357. Bishop Glasspool told Canon Voorhees that Bishop

Glasspool had gotten into a lot of trouble over this. That she had gone to the

Standing Committee to try to talk to them about the sale of Newport Beach and

that it upset the bishop [Bruno] so much that they had to have mediation. And I

had no idea that that had happened. And I felt terrible for her that . . . she had had

to go through that. She said to me thatI guess they went through mediation and

came to some agreement. I dont know what that was. And then she just said that

the bishop scared the shit out of her and that she needed to get out of here, and she

was just trying to make it through General Convention. Tr. 358-61.3

83. Also on June 16, 2015, Canon Voorhees told Bishop Bruno that she

would not accept the Compass Rose position. Tr. 288-90.

84. On June 21, 2015, Canon Voorhees wrote an open letter to respond to

what she described as misinformation being published by the Los Angeles

diocesan leadership about the status of St. James the Great. She stated: St.

James the Great is a financially viable and sustainable congregation that is not

expending hundreds of thousands of dollars of diocesan or corporation sole funds

per year. The parish has a $530,000 budget and [is] paying ALL its bills.

3
Bishop Brunos counsel adduced this testimony from Canon Voorhees. Canon Voorhees did not want to testify
about it. The President of the Hearing Panel probed its relevance and took a break in the proceeding. Bishop
Brunos counsel insisted that Canon Voorhees testify. Tr. 357-62. Bishop Bruno did not address, explain or refute
it when he testified.

42
Second: I am not non-stipendiaryI am being paid. Third: There would be no

parking issue if the diocese signed the shared parking agreement with a

neighboring organization that is sitting on their desk. Ex. 137; Tr. 306-08.

85. On June 22, 2015, Save St. James the Great (an unincorporated

association made up of congregants at St. James and residents of Lido Isle and

environs living near St. James) filed a civil complaint against Corp Sole and

Legacy, seeking to stop the sale of St. James the Great, on the basis of the 1945

deed restriction. Save St. James the Great sought a temporary restraining order to

prevent the sale of the property, which Save St. James the Great at that time

believed would occur on Friday June 26. Ex. 13, para 9.

86. On June 23, 2015, the City Council of Newport Beach discussed St.

James the Great. Mayor Dixon, whose district includes the St. James site, spoke

about how the site is restricted by the citys general plan to private institutions,

meaning the site could be used for religious or educational purposes, but not for

townhouses. Ex. 139; Tr. 414-16.

87. On June 24, 2015, the Superior Court denied the request of Save St.

James the Great for a temporary restraining order. Ex. 30.

43
 88. On June 25, 2015, Canon Voorhees sent by email to her congregation

what she termed this last pastoral letter. She also included a copy of this letter in

the bulletin for the June 28 services. In the letter, Canon Voorhees explained that,

through comments by Bishop Brunos counsel at the hearing on Save St. James the

Greats request for a temporary restraining order, she learned we were part of

another land purchase, where St. James the Greats proceeds are intended to

complete another transaction. This was the first time that she or others at St.

James learned that Bishop Bruno intended to use a substantial part of the proceeds

from the sale of St. James to fund a commercial purchase, which since then has

been revealed to be Anaheim. Canon Voorhees also said, in her letter, that she did

not believe that she could lead the congregation into a diaspora situation. Ex. 31.

89. Bishop Bruno testified at the hearing that he viewed Canon Voorhees

letter as a pastor or a shepherd abandoning her sheep. Tr. 547.

90. On June 26, 2015, Bishop Bruno as Corp Sole filed suit against

Griffith Company, to quiet title to the St. James property and to obtain damages

and punitive damages for alleged slander of title. Tumilty, as attorney-in-fact for

Bishop Bruno, verified the complaint. Ex. 140.

44
 91. On June 28, 2015, Canon Voorhees and the congregation had their

final Sunday services at St. James the Great. During the discussion after the

service, the congregation asked her to remain as their vicar. Canon Voorhees

testified: I took a vow to take care of the flock that was entrusted to me. And I

looked at the whole room and thought I cant abandon them right now. Tr. 311.

92. On June 29, 2015, Tony Crowell, a member of the St. James

congregation, wrote to Bishop Bruno. Mr. Crowell said that it seemed, from public

records, that the sale had not closed and so we plan on continuing on in our

current church building until you do close your transaction and the developer

requires us to leave. Ex. 141. Mr. Tumilty responded, on behalf of Bishop

Bruno, saying that Canon Voorhees has resigned her position as Vicar of St.

James the Great mission and congregation and the Bishop has accepted her

resignation effective midnight June 28. The Bishop has not made a determination

as to whether a member of the clergy will be assigned to the congregation. In any

case, the last worship service to be held at the church facility was this past

Sunday. Ex. 141 page 2.

93. On June 29, 2015, Bishop Bruno informed Canon Voorhees that I

consider the correspondence [Ex. 31] your letter of resignation as my Vicar for the

congregation effective at midnight on Sunday June 28, 2015. Ex. 32. Canon

45
Voorhees immediately replied that there is a clear misunderstanding. I have not

resigned, I have not tendered my resignation to you, nor have I ever communicated

to you that I was resigning from St. James the Great. I plan to continue to serve as

vicar of St. James the Great as long as the congregation continues. Ex. 32.

94. On June 29, 2015, Mr. Tumilty advised Bishop Bruno that we should

stand our ground. He added I should notify her later this afternoon that the locks

have been changed and she will need to make arrangements to access the church to

remove her personal belongings. Ex. 33. Canon Voorhees immediately replied,

again stating she had not resigned. Ex. 34.

95. On June 29, 2015, Mr. Forbath and Ms. Bangao, with a locksmith,

went to St. James the Great and changed the locks. See Ex. 284. Later in the day,

Mr. Tumilty informed Canon Voorhees that we have secured the premises, that

she should return all church property, and make arrangements to retrieve her

personal property from the locked church. Ex. 34. Canon Voorhees responded to

Mr. Tumilty, with a copy to Bishop Bruno, that she had not resigned. Surely, you

understand that you are in unprecedented territory evicting an active congregation

and creating a vacant building instead of a sacred space this Sunday with the

building still for sale. It is now not the developer wanting the building vacant, it is

our diocesan leadership. Ex. 34.

46
 96. On June 29, 2015, Bishop F. Clayton Matthews spoke with Bishop

Bruno in Salt Lake City, where General Convention was meeting, about the

rumors that were being spread in the Convention about him not getting the

consent of the Standing Committee to sell consecrated property. Bishop Bruno

told Bishop Matthews that he did not need the consent of the Standing Committee,

because the property was owned by Corp Sole, but he went to them anyway this

past spring to seek their advice and counsel. Ex. 143.4 Bishop Bruno also told

Bishop Matthews that he had told the Vicar that the likelihood, when she went

there, a few years ago, was that the property would be sold so that she should not

have been surprised by the decision. He further told Bishop Matthews that Canon

Voorhees resigned her position without him asking her to do so. Ex. 143. At the

hearing, Bishop Bruno confirmed that Bishop Matthews correctly recorded their

brief conversation. Tr. 684-85, 689 (I think hes pretty trustworthy).

97. On Sunday July 5, 2015, locked out of their church, Canon Voorhees

and the St. James the Great congregation held an Episcopal worship service in a

nearby park. Since that time, every Sunday, and every religious holiday, they have

gathered for Episcopal worship. As Kathi Liebermann testified, St. James the Great

is now a church on wheels, since the parishioners have to bring all the elements

of church to and from church every Sunday morning. Tr. 450-51.

4
There is a word missing in Ex. 143 but it is clear, from the context and from Ex. 19, that the word is need.

47
 98. On July 6, 2015, the Purchase and Sale agreement between Corp Sole

and Legacy terminated by its terms. The agreement provided that it would

terminate if Legacy did not, by the end of the Contingency Date, provide Corp

Sole with a Buyers Approval Notice. Ex. 25 section 4.1.3. The Contingency Date

was extended several times, until July 6, 2015. Ex. 138. When that date passed,

without Legacy accepting the property, the agreement terminated.

99. On July 20, 2015, Bishop Matthews had a telephone conversation

with Bishop Bruno. Bishop Bruno said that he took the matter of the sale of St.

James the Great to the Standing Committee for advice and counsel even though it

had been given to Corporation Sole earlier. The Standing Committee voted

complete support for the sale in 2015. Bishop Bruno again stated that the Vicar,

Cindy Voorhees, was aware from the time she was placed at the Church that it

would likely be sold. After two years the parochial reports showed little to no

growth. Bishop Bruno told those on the call that on May 17th a process of due

diligence was started to determine if the sale of the church was appropriate and a

transition committee was created. Ex. 152.

100. On September 8, 2015, Save St. James the Great filed a verified

amended complaint in the civil litigation. The amended complaint described how

Bishop Brunos staff locked the doors of the church on June 29, 2015, and the

48
difficulties the congregation and the community faced thereafter: On Sunday

July 5, 2015, and on every Sunday since then, the St. James the Great congregation

has held its Sunday morning worship services in a small park across the street from

the Property. This is more than simply an inconvenience for the congregation. The

worshippers have no pews in which to sit, they bring folding chairs; they have no

fixed sound system, they have to bring and assemble a temporary one which is

sometimes hard to hear; they have no aisle, they have to walk to receive

communion over the uneven grass, a hazard to the aged and infirm. Several

congregants have fallen on the uneven lawn and one congregant has been injured

by an SUV driver who didnt see him crossing the street. Ex. 284 para 27.

101. On October 28, 2015, the diocese prepared a spreadsheet showing the

pledges by the various missions and parishes to the diocese for 2014 and 2015.

According to this spreadsheet, St. James the Great pledged $25,600 to the diocese

in 2014 and $35,000 in 2015, its full ten percent. The exhibit shows that St. James

pledged more than any other mission in the diocese, except one (St. John

Chrysostom in Rancho Santa Margarita), and pledged more than many of the

parishes in the diocese. Ex. 158. St. James fulfilled its pledge in 2014 (see Ex. 12

page 3 line 12) and was on course to fulfill its pledge in 2015 but for the closure of

the church.

49
 102. On November 4, 2015, the Reverend Kirby Smith, vicar of St. Lukes

La Crescenta, sent Bishop Bruno a request for a diocesan grant of $153,000 for

2016. The request showed that St. Lukes had received $138,000 as a diocesan

grant in 2014 and another $122,000 of financial aid in 2015. Ex. 159 page 5, line

10. These sums were in addition to mission development grants of $40,000 for

2014 and $38,000 for 2015 and a requested grant for 2016 of $37,500. Page 5 line

6. In total, over three years, according to this request, St. Lukes received

$528,000 from the diocese. Mr. Tumilty was asked at the hearing about the

contrast between St. Luke's, receiving subsidies of hundreds of thousands a year,

and St. James, receiving minimal financial aid in 2015. "What's your answer to the

question of why this [St. Luke's] is a sustainable mission and St. James is not?

Answer: I did not say that this was sustainable." Tr. 828-29.

103. On July 5, 2016, the auditors provided Bishop Bruno the audited

financial statements of Corp Sole for 2015. Ex. 175. The financial statements

show that Corp Sole had, as of December 31, 2015, total assets of more than $56

million, composed mainly of real estate. Page 3. There is a list of churches, both

parishes and missions, whose properties were owned by Corp Sole. Pages 18-23.

St. James is listed as a mission, and the property is valued at more than $7 million.

Page 22. The Anaheim property is valued at $12.6 million. Page 24.

50
 104. On July 30, 2016, the Special Committee regarding Corp Sole

submitted its report. See F.1 above.

105. On November 28, 2016, Corp Sole and Legacy entered into a letter

agreement to terminate their escrow arrangements and obtain return of Legacys

deposit. Ex. 164.

106. The St. James the Great congregation continues to meet every Sunday

for Episcopal services. The congregation now meets in the community room at the

city hall; Canon Voorhees still leads the congregation as its priest. Tr. 393, 439.

Credibility, Reliability and Weight of the Testimony

and Other Evidence

The Hearing Panel is mindful of its canonical duty to determine the

credibility, reliability and weight to be given to all testimony and other evidence.

Canon IV.13.8. In doing so, the Hearing Panel has taken into account the

demeanor of the witnesses on the witness stand; their apparent candor and fairness;

their bias, if any; their intelligence; their interest, or lack of it, in the outcome of

the case; their opportunity, or lack of it, for knowing the truth and for having

observed the facts to which they testified; and prior inconsistent statements by the

witnesses contrary to the evidence at the hearing. Based on these considerations

the Hearing Panel makes the following observations.

51
 Bishop Bruno testified that as early as November 2008, while the Anglican

litigation was still active, his intention was to put the properties at issue on the

market. Tr. 491-92, 494. There is no credible evidence that he ever told that to

anyone at St. James until 6 1/2 years later, in April 2015. If he had he would not

have told Canon Voorhees on April 13, 2015 that he knew his decision to sell

would be traumatic and bad news to the congregation. Tr. 525-26. To the

contrary, Canon Voorhees testified that during the court hearings in the property

litigation, which she and Bishop Bruno attended, they talked about reopening St.

James and Bishop Bruno said that he had decided to reopen it and that she would

be the Vicar. Tr. 214-17. He never suggested or intimated that he was going to

close or sell the property; rather he said that he was very excited about reopening

it. Tr. 217-18. When he came to the opening service he was extremely

celebratory, and invited the entire Diocese. Many clergy attended. Tr. 229-30; Ex.

22. Bishop Bruno was present when Canon Voorhees gave a PowerPoint

presentation to the Corporation of the Diocese in September 2014, and told her that

she had done a great job, Ex. 46 Tr. 244-258, and he did not indicate in any way

that he was thinking about selling the church.

When John McMonigle contacted Canon Voorhees about a possible sale on

October 14, 2014, and she inquired whether she was wasting her time, Mr. Forbath

did not give her a straight answer. Instead, he told her, cryptically, that he was not
52
going to get between a priest and her Bishop. She then called Mr. Tumilty, who

claimed no knowledge of the sale. Tr. 276-9; Ex. 21. Asked about the same

exchange, on which he was copied, Bishop Bruno testified that If I answered

every email where somebody had a concern or a worry, and its not addressed to

me, I would not sleep. He then added that no kind of ministry is wasting time.

Tr. 618-19.

On whether he had disclosed the Anaheim deal to the congregation at the

May 17, 2015 meeting, Bishop Bruno evaded giving a straight answer. Tr. 582-84.

On whether the Cushman offer was unsolicited, Bishop Bruno avoided

answering the question. Tr. 554-63.

In response to the Church Attorneys direct question whether, after recovery

of the property in 2013 and up to the time he received and accepted the $15 million

offer from Legacy, he promised anyone in the Diocese at any time that he would

never sell the property, Bishop Bruno first said no. He then referred to sort of a

rule of thumb that I would liquidate those properties as they were redundant

churches. Tr. 550-51. Previously the Hearing Panel had not heard of any such

rule of thumb. Bishop Bruno also testified that he had a fiduciary responsibility

to the Diocese of Los Angeles to make sure that there were resources going on into

53
the future. Tr. 551. Yet, at the May 17, 2015 meeting of the congregation he said

that he did not have a fiduciary duty to St. James. Tr. 132.

In attempting to explain his decision to sell the property, Bishop Bruno

repeatedly referred to the parking problem. However, that issue had been resolved

months before and the resolution was sitting on someones desk in the Diocesan

Office. Bishop Bruno and his staff did not want the problem resolved, so they let

the resolution languish, without telling Canon Voorhees or anyone else why. Tr.

266-73.

Finally, Bishop Bruno told both the Hearing Panel and Canon Voorhees that

the sale was a done deal when he signed the contract with Legacy. Tr. 575-76;

285-86. Yet, for purposes of his defense to the Standing Committee consent

charge in this case, where it is undisputed that Bishop Bruno did not obtain the

prior consent of the Standing Committee before entering into the contract with

Legacy, Bishop Bruno maintains that the deal was not done because it was subject

to contingencies, despite the fact that all the contingencies ran in the favor of

Legacy, not Corp Sole.

54
 DECISIONS ON THE CHARGES

Throughout this proceeding and pursuant to Canons IV.19.16 and IV.19.17

the Hearing Panel has presumed that Bishop Bruno did not commit any of the

offenses with which he is charged, and required the Church Attorney to carry his

burden of proof by clear and convincing evidence, as defined in Canon IV.2. The

Hearing Panel concludes that the Church Attorney has carried his burden and now

makes the following decisions.

The First Charge

The first charge, made pursuant to Canon IV.4.1(g), is that Bishop Bruno

failed to exercise his ministry in accordance with Canon II.6.3, which provides as

follows:

No dedicated and consecrated Church or Chapel shall be removed,

taken down, or otherwise disposed of for any worldly or common use,
without the previous consent of the Standing Committee of the
Diocese.

On page 3 of his Opposition to Bishop Brunos Motion to Dismiss or Stay,

filed on September 9, 2016, on page 1 of his Trial Brief, filed March 17, 2017, and

on the first day of the hearing, in his opening remarks, the Church Attorney also

invoked Canon II.6.2. Tr.10. Canon II.6.2 states:

55
 It shall not be lawful for any Vestry, Trustees, or other body
authorized by laws of any State or Territory to hold property for any
Diocese, Parish or Congregation, to encumber or alienate any
dedicated and consecrated Church or Chapel, or any Church or Chapel
which has been used solely for Divine Service, belonging to the Parish
or Congregation which they represent, without the previous consent of
the Bishop, acting with the advice and consent of the Standing
Committee of the Diocese.

Bishop Brunos counsel did not object to and therefore waived the addition

of Canon II.6.2. Moreover, the evidence and arguments are the same with respect

to both Canons, consideration of Canon II.6.2 does not prejudice Bishop Bruno,

and justice requires the Hearing Panel to consider that Canon.

There is no dispute that Bishop Bruno did not seek or obtain the previous

consent of the Standing Committee when he signed the agreement to sell St. James

the Great on April 10, 2015.

The canonical provision is clear. Canon II.6.3 provides that no dedicated

and consecrated Church or Chapel shall be removed, taken down, or otherwise

disposed of for any worldly or common use, without the previous consent of the

Standing Committee. There is no question that St. James the Great was and is a

consecrated Church; Bishop Bruno himself consecrated it in 2001, upon

completion of the new church complex.

56
 Bishop Bruno advances several defenses. The first is that he did not need

the consent of the Standing Committee because the April 10 Legacy Purchase and

Sale agreement was just an agreement. He contends he did not need approval

unless and until the property was disposed of. The flaw in his argument is that

the agreement which Bishop Bruno signed on April 10 was a full, binding

agreement to sell the St. James the Great property. Ex. 25. There were no

conditions in the agreement on Bishop Brunos duty to deliver the church property

at closing. His duties were to provide information and access to Legacy so it could

perform its due diligence. All the due diligence and contingencies favored

Legacy, not Corp Sole. If Legacy came to closing with the $15 million purchase

price, Corp Sole was legally required to transfer the property to Legacy. If it failed

to do so Legacy could have sued Corp Sole for specific performance. See Ex. 25,

section 16.1.

Previous Standing Committee review and approval is a crucial part of the

fabric and polity of the Church, and the Hearing Panel so reaffirms. This case

provides an excellent example of why Standing Committee review and approval is

required before the sale of consecrated church property. If Bishop Bruno had

presented the proposed Legacy agreement to the Standing Committee before he

signed the agreement, the Standing Committee would have had the independent

opportunity, and duty, to investigate.

57
 If there were any doubt that Canon II.6.3 requires Standing Committee

consent before a binding agreement is signed, the doubt is removed by Canon

II.6.2. Canon II.6.2 applies to any body authorized by state law to hold property

for the Church. Corp Sole is just such a body under California law. Canon II.6.2

provides that such a body may not encumber or alienate sacred property

without the previous consent of the Bishop, acting with the advice and consent of

the Standing Committee of the Diocese. Even assuming for the sake of argument

that signing the binding agreement to sell St. James to Legacy was not disposal

under Canon II.6.3, it was an encumbrance or alienation under Canon II.6.2.

The Bishops own Chancellor, Richard Zevnik, expressed the same view on

this issue in 2014 in an email exchange with one of the Complainants, Michael

Strong. (Ex. 82.) If Mr. Zevnik believed that the prior bishop needed Standing

Committee approval to send a mere letter restricting his rights with respect to

church property, Bishop Bruno surely needed Standing Committee approval before

signing a legally binding contract to sell a consecrated church building in active

congregational use.

Moreover, it is clear that Bishop Bruno himself thought the contract with

Legacy was final and binding: he twice referred to it as a done deal. F.57; F.58.

58
Any argument to the contrary thus rings hollow and is the post hoc creation of his

counsel.

It was only after the contract to sell St. James was signed and effective, and

after the sale became public and pressure began to build, that Bishop Bruno

discussed the sale with the Standing Committee, on May 27 and June 8, 2015. At

neither meeting did the Standing Committee consent (the canonical word) to the

Purchase and Sale agreement.

In May, six weeks after Bishop Bruno had entered into the sale contract,

items concerning St. James were brought forward at the Standing Committee

meeting to be brought to the attention of the Bishop. F.71. The minutes reflect

that after Bishop Bruno joined the meeting and following discussion, the Standing

Committee shared with Bishop Bruno their understanding of his reasons to sell

the property in Newport Beach and will support Corporation Soles action. (See

the handouts enclosed with the original copy of these minutes.) Ex. 304. No

handouts were introduced in evidence.

In June, two months after Bishop Bruno had entered into the sales contract,

the Standing Committee concur[red] in the signed Purchase and Sale agreement

and noted that the Standing Committee has no authority over Corporation Sole.

59
The President of the Standing Committee could not remember if the committee

looked at any documents (e.g., the Purchase and Sale Agreement), in deciding to

concur. (Tr. 721-22.) She did not testify at all about the May meeting. F.75.

With respect to the June meeting, two months after what Bishop Bruno

described as the done deal, Bishop Bruno requested, and got, a special meeting

of the Standing Committee. Ex. 19. Bishop Bruno offered no explanation of why,

in view of his belief that it was not necessary, he requested this special meeting.

The answer is obvious. By then, the controversy between Bishop Bruno and the

congregation, Canon Voorhees, Bishop Glasspool, Mayor Pro Tem Dixon and

others was boiling. F.58-F.64; F.66-F.74. Bishop Bruno wanted to get the

Standing Committee approval he should have gotten two months earlier.

Bishop Bruno contends that previous Standing Committee consent was not

necessary because the contracting party was Corp Sole, a California corporation,

not Bishop Bruno or the Diocese. There are several flaws in this argument.

1. Corp Sole is plainly a body authorized by California law to hold

property within the meaning of Canon II.6.2.

2. Regardless of local law and understandings or customs, clergy and the

other components in the Church, such as Standing Committees, cannot avoid their

60
canonical responsibilities and duties, including those arising under Titles II and IV,

by acting through other bodies such as Corp Sole.

3. Whatever the distinctions may be, if any, between the Bishop and

Corp Sole under California law (a matter on which the Hearing Panel expresses no

opinion), they are a unity in the Church. As Bishop Bruno himself testified, Corp

Sole is a single person corporation and the Bishop is that single person. Corp

Sole has one incumbent the Bishop. Corp Sole in the Diocese of Los Angeles

operates without outside governance, oversight or transparency, or even the advice

and consent of the Standing Committee.5 As the 2016 Report of the Special

Committee said, canon law has supremacy over Corporation Sole and the

incumbent Bishop. F.1. In short, what is required by the canons, including

previous consent of the Standing Committee, trumps what may have been

allowable under Bishop Brunos and the Standing Committees understanding of

Corp Sole.6

4. The St. James property was apparently never conveyed to Corp Sole

pursuant to the Canons in the first place. By Quitclaim Deed dated May 20, 2014

(Ex. 80) the Diocese purported to convey the St. James property to Corp Sole.

5
The Hearing Panel has no evidence before it, and makes no findings concerning, Corp Soles in other dioceses.
6
The 2016 Report of the Special Committee was issued over fifteen months after Bishop Bruno entered into the
Contract to sell the St. James property. The statements and findings in the Report were not, however, new.

61
There can be no doubt that under Canons II.6.2 and II.6.3 that conveyance required

the previous consent of the Standing Committee: at that time the property was

owned by the Diocese, not Corp Sole. Yet, Bishop Brunos counsel has stipulated

that the Standing Committee did not approve the conveyance. Ex. 304.

The need for previous Standing Committee consent to that conveyance is

further evidenced by the fact that the Standing Committee did, in fact, approve the

conveyance to Corp Sole of one of the other properties recovered in the Anglican

litigation, but not the St. James property. Ex. 35. The approval of the Standing

Committee was given in March, 2009, four years before the conveyance to Corp

Sole. Exs. 35 and 305.

In short, the actual course of conduct with respect to that other property

shows that Bishop Bruno knew how to comply with the canons, and did not, with

respect to the St. James property. The St. James property was not Corp Soles and

the Corp Sole defense fails.

62
 The Second Charge

The second charge is that Bishop Bruno is guilty of conduct involving

dishonesty, fraud, deceit or misrepresentation, in violation of Canon IV.4.1(h)(6).

A. BISHOP BRUNO MISREPRESENTED HIS PLANS FOR ST.

JAMES BEFORE MAY 17, 2015

As early as November, 2008, Bishop Bruno had formed his intent to sell the

property. F.11. Yet, there is no evidence that he disclosed that intent to Canon

Voorhees or the St. James community. In the course of the long Anglican

litigation, Bishop Bruno repeatedly said that his goal was to recover St. James for

the Episcopal Church, so that St. James could once again be used for Episcopal

worship services. F.7-9. In response to a question from a member of the Hearing

Panel, however, Bishop Bruno claimed at trial that the St. James congregation

knew that he would sell rather than re-open the St. James site. Tr.496. There is no

evidence to support that claim and much that belies it.

In the summer of 2013, the California Superior Court ordered the Anglicans

to return St. James to the Episcopal Church. Bishop Bruno appointed Canon

Voorhees as the vicar of the congregation. F.17; F.19. Throughout the testimony

it was clear that she had a previous and deep connection to the building. She had

worked, as a liturgical consultant, on the redesign and reconstruction in the late

63
1990s and early 2000s. Canon Voorhees made several changes to her life so that

she could serve the congregation. She and her husband purchased a home in

Newport Beach and moved there; they did not move into the vicarage, so that it

would be available to be rented and provide income for the congregation. She

agreed with Bishop Bruno that her position would be, at least initially, non-

stipendiary, because she was confident the congregation would grow to a point

where it could compensate its priest. Tr. 236. She would never have taken such

life steps if Bishop Bruno had told her on her appointment that he might sell the St.

James properties after the congregation was restarted or that the St. James the

Great congregation was a month-to-month proposition. Bishop Bruno admitted,

on questioning by the Hearing Panel, that he did not explicitly tell the

congregation the church might be sold. Instead, on October 6, 2013, he was trying

to encourage the congregation to make a miracle. Tr. 511-12.

In the fall of 2013, Bishop Bruno, assisted by two other Bishops (including

Bishop Glasspool), re-opened St. James the Great as an Episcopal church. Bishop

Bruno challenged the congregation to build a new church for years to come.

F.17; F.20; F.20-F.24. The trial testimony was clear. None of those involved in

the early days of the congregation would have made their volunteer commitments,

financial pledges, or capital improvements if Bishop Bruno had told them that the

64
property was for sale or that the congregation was temporary. One does not

typically invest ones heart, soul and money into a temporary organization. F.30.

Beginning at the latest in the fall of 2014, Bishop Bruno and his key aides

were secretly planning the sale of St. James the Great, if they got the right price.

F.11; F.39; F.42-45; F.47-53; F.55-61. Bishop Bruno insists that Canon Voorhees

knew of the consistent interest and offers regarding the NPB Property and

Bishops willingness to consider them. Respondent Pre-Trial Brief 7. Other than

his own testimony, Bishop Bruno presented no credible evidence to support that

assertion at trial. The evidence is simply overwhelming that, after Bishop Bruno

asked Canon Voorhees to become the vicar of St. James the Great, he did the

opposite encouraging her while keeping his intention to sell secret including

not responding to her when possible clues arose. Canon Voorhees was not aware

of the Bishops plans to sell the property. Two specific incidents supported by

contemporaneous documents demonstrate this.

The first incident occurred in October 2014. After receiving a telephone call

from a real estate broker saying that he had information from Mr. Forbath

regarding the sale of St. James, Canon Voorhees asked Bishop Bruno and his

senior staff whether there was something she should know, and whether she was

wasting her time. If Canon Voorhees had known that Bishop Bruno was

65
considering a sale, she would not have been surprised at the inquiry from the

broker. Bishop Bruno did not deny or refute that Mr. Forbath and the broker had

communicated with each other about selling St. James. He did not respond to

Canon Voorhees. At trial, his testimony was If I answered every email where

somebody has a concern or worry, and its not addressed to me, I would not sleep.

F.39. The conclusion is inescapable that Bishop Bruno was considering a sale, and

he did not want Canon Voorhees to know.

The second incident occurred in February 2015. After asking Canon

Voorhees the odd question whether he should sell St. James or St. Michaels,

Bishop Bruno reassured her he would not sell St. James the Great. F.44; Exs. 55

and 56.

This is not a situation, then, in which Bishop Bruno was simply silent about

his plans, while encouraging the congregation to believe their church would be

permanent. To the contrary, Bishop Bruno made misrepresentations to Canon

Voorhees, such as his statement that St. James would not be sold, even as his staff

was working towards the sale. Bishop Brunos failure to respond to the October

2014 email, in which Canon Voorhees asked him whether there was something

about a sale which she needed to know, is itself a misrepresentation. He had a duty

66
to speak, to tell her the true state of affairs. Silence when there is a duty to speak is

misrepresentation.

B. BISHOP BRUNO MISREPRESENTED IN MAY AND JUNE OF

2015 THAT ST. JAMES WAS NOT A SUSTAINABLE
CONGREGATION

When he announced the sale to the congregation, on May 17, 2015, and in

several follow-up communications, Bishop Bruno misrepresented his reasons for

making the sale. He claimed St. James was not sustainable for three reasons:

parking issues were intractable, the congregation was costing the diocese too much

money, and he needed to reimburse Corp Sole for the $9 million spent in legal

expenses in the property litigation. He did not mention that $6.3 million of the sale

proceeds would go straight into the purchase of the Anaheim commercial property.

(1) PARKING.

As of the winter of 2015, Canon Voorhees, Mr. Tumilty, Mr. Forbath and

Chancellor James Prendergast had devoted several months to resolving, and had

resolved, the parking issue. F.42-43; F.47. Yet, on May 17, 2015, when he

announced to the congregation that he had sold St. James the Great, Bishop Bruno

mentioned as one of his reasons that the church did not have enough parking

spaces to satisfy city requirements. Mr. Bennett, who had worked on the parking

67
issue during his time as Bishops Warden, and who had kept current on the issue

with Canon Voorhees, called Bishop Bruno on this point. He stated that parking

was not a serious problem, that there was a solution, and that parking could not be

the real reason for the sale. F.66.

Bishop Bruno reiterated and expanded on his parking argument in a letter to

the Diocesan Council, sent on May 19, 2015. F.69.

There was an agreement that would have fully resolved the parking issue

and it had been in front of Bishop Brunos senior staff and his chancellor, James

Prendergast, for five months. It is clear to the Hearing Panel that Bishop Bruno,

Mr. Tumilty and Mr. Forbath delayed signing the parking license agreement

because they knew that if there were an agreement that would get in the way of

their decision to sell the St. James property. They were using the absence of a

signed agreement as an excuse. When Bishop Bruno told the congregation on May

17, and the Diocesan Council on May 19, that parking was a major reason to sell

the property, he misrepresented.

(2) ANGLICAN LEGAL COSTS

In an effort to justify selling St. James the Great, Bishop Bruno often

mentioned that he had to recoup the legal expenses of the Anglican litigation. His

68
June 5, 2015 letter to Mayor Pro Tem Dixon stated that he had incurred $9

million in legal costs related to securing four parish properties at which members

disaffiliated from the Episcopal Church. F.74. But the $9 million cost figure

was a gross exaggeration. The real legal expense was less than $5 million. The

rest was unsubstantiated. F.15. Bishop Brunos use of it in an effort to persuade a

public official was a misrepresentation to the public. Moreover, he omitted to

mention that by the summer of 2015 he had already recovered $5 million by sale of

one of the properties recovered from the Anglicans (St. Davids North Hollywood)

and more than $3.5 million through a long-term lease and then sale of another such

property (All Saints Long Beach). F.16.

(3) ANAHEIM

Bishop Bruno was conspicuously silent, both on May 17 and thereafter,

about what the record later revealed was a significant reason for selling St. James:

he wanted to use $6.3 million from the sale of St. James to purchase commercial

real estate in Anaheim. F.10, F.45, F.48, F.51, F.52, F.56, F.65, F.66. When

Bishop Bruno signed the agreement on March 20 to purchase the Anaheim interest,

Corp Sole did not have $6.3 million in cash to pay the purchase price. F.51-52 .

However, on April 1, Corp Sole received an offer of $15 million from Legacy for

the Newport Beach property. F.55. The question of how to fund the Anaheim

69
purchase was resolved; the Diocese would sell sacred property in Newport Beach

to purchase a further interest in commercial property in Anaheim.

Bishop Bruno misled the St. James congregation about the connection

between the two transactions. A member of the congregation asked him on May

17 whether there was some urgent financial crisis, some pressing need for the sale

proceeds from St. James. Bishop Bruno responded that the Diocese did not need

the money. F.66. But Bishop Bruno had recently seen Forbaths April 9 email in

which he expressed concern that any delay in closing the St. James sale would

have a significant impact on funding the Anaheim purchase. F.56. Bishop

Bruno clearly was aware of that fact when he answered the question on May 17.

(4) BISHOP BRUNOS CLAIM THAT ST. JAMES WAS NOT

FINANCIALLY SUSTAINABLE WAS FALSE

Bishop Bruno claimed that one reason he had to sell St. James the Great was

that the congregation was not financially sustainable. F.74; F.84.

The Hearing Panel heard extensive testimony from Ms. Andersen and Canon

Voorhees, but not from Mr. Forbath, about the finances of St. James the Great.

Ms. Andersen and Canon Voorhees showed that the finances of St. James the Great

were strong; that it was on track to achieve financial independence by the end of

2015 or 2016. F.74. None of the documents from 2014 or early 2015, before the

70
Purchase and Sale agreement was signed, suggests that Bishop Bruno or his staff

was concerned about the finances of St. James the Great. Surely, if

sustainability was, as Bishop Bruno later claimed, a major reason to sell the St.

James property, there would be some hint of this in Bishop Brunos files and

emails from before he signed the Purchase and Sale agreement.

By its very nature, sustainability looks to the future, not just the past.

Why didnt Bishop Bruno inform the St. James congregation that he would have to

close down its congregation and sell their building unless it became financially

independent? For example, what would have happened if, instead of granting the

$48,000 subsidy to St. James the Great for calendar year 2015, the Diocese had

denied the request and told the congregation that it would have to increase

contributions and reduce expenses in order to balance its budget? Ms. Andersen

testified that the congregation would have found a way to balance the budget, even

without the $48,000 subsidy from the diocese. Ms. Andersen testified that we

were going to be in a net position of very, very low dollars in 2015 and that St.

James would maybe go to zero in 2016. In other words, by 2016 there would be

no need for diocesan support and St. James could pay its mission share pledge to

the diocese. Tr. 133-134. This testimony was not mere wishful thinking. The

congregations ability to stand on its own is proved not just by testimony, but by

what has happened since the lockout, when the St. James the Great congregation
71
has managed to survive on its own without any financial or other help from the

diocese. As Ms. Andersen testified and as shown by documents, St. James was

costing the diocese very little. And, it was contributing its full Mission Share

Pledge. Ex. 158. Ms. Andersons projections of the future were based on solid

and reliable past performance; they were not pipedreams.

The claim that St. James was costing the diocese too much money and was

unsustainable was substantially refuted by credible evidence. It was an excuse

devised after the Purchase and Sale agreement was signed and it does not hold up.

(5) BISHOP BRUNO MISREPRESENTED THAT CANON

VOORHEES HAD RESIGNED HER POSITION AS VICAR OF ST.
JAMES THE GREAT

The day after the sale was announced on May 17, 2015, Canon Voorhees

began to write a series of pastoral letters to her congregation. F.68. She testified

that, by late June, she was overwhelmed with pastoral care, talking with the

upset, tearful members of her flock. Tr. 293 - 294.

On June 25, on the eve of what she believed would probably be the last

church services in the building, she sent, and included in the bulletin, what she

termed her last pastoral letter to the congregation. F.88. After the June 28

services, the congregation asked her to remain its vicar, and she agreed. F.91.

72
 On June 29, Bishop Bruno emailed Canon Voorhees a letter in which he said

I consider the correspondence your letter of resignation as my Vicar for the

congregation effective at midnight on Sunday June 28, 2015. Three hours later,

Canon Voorhees emailed Bishop Bruno: I have not resigned, I have not tendered

my resignation to you, nor have I ever communicated to you that I was resigning

from St. James the Great. I intend to continue to serve as vicar of St. James the

Great as long as the congregation continues. F.93. When they received this letter

in Salt Lake City, Mr. Tumilty advised Bishop Bruno that he should stand his

ground on the resignation issue. Later in the day, the same day that Bishop Bruno

locked the church and grounds, Canon Voorhees received an email from Mr.

Tumilty, referring to her resignation, telling her that the locks on the building had

been changed. Any and all church property, including but not limited to books,

minutes, passwords, rosters, records, stationery, business cards and the like, as well

as any vestments or liturgical hardware etc. that are in your possession are to be

returned directly... Canon Voorhees replied immediately, insisting that she had

not resigned. F.94-95.

Although Bishop Bruno, in his email letter to Canon Voorhees, said that he

would consider her letter a resignation, he and his staff stated it as a fact that she

had resigned in other communications. On June 29, in a conversation in Salt Lake

City, Bishop Bruno told Bishop Matthews that Canon Voorhees had resigned
73
without his asking her to do so. F.96. Bishop Bruno did not tell Bishop

Matthews that Canon Voorhees denied she had resigned or that Bishop Bruno had

unilaterally deemed her pastoral letter to her congregation a resignation.

Resignation involves intent to resign. If Canon Voorhees letter of June 25

had used the words resign or resignation, that would have cinched the question

of her intent. But she did not use those words, and Bishop Bruno recognized the

distinction when he wrote that he considered her letter a resignation. After she

sent two emails within nine hours negating that intent, there was no doubt that she

had not resigned.

Canon Voorhees did not resign. She was terminated. Canon Voorhees did

not send a resignation letter to Bishop Bruno, and when he claimed that she had

resigned, she immediately disputed that. In Bishop Brunos own words, Rev.

Voorhees was terminated. Respondent Pre-Trial Brief 11. But resignation, under

the Dioceses own Missions Manual, requires a resignation letter from the vicar to

the bishop and sixty days notice. Ex. 3 page 003-014. Canon Voorhees sent no

such letter. When a member of the Hearing Panel asked Canon Voorhees whether

she believed she had been terminated, she responded It felt like that, yes. And so

I wrote back and said I think theres a misunderstanding. Tr. 385-86.

Resignation and termination are different, and this was plainly a termination. And,

74
in his deposition, Bishop Bruno admitted that Canon Voorhees was effectively

fired. Depo. Tr. (Ex. 299) 200-01.

The question in this Title IV case is not whether Bishop Bruno was within

his rights to terminate Canon Voorhees as his vicar (although he did not follow the

proper procedures). The question is whether, when Bishop Bruno told Bishop

Matthews and others that Canon Voorhees had resigned, he was misrepresenting

the facts. He was. And he has now admitted she was terminated.7

* * *

The hearing Panel finds that the foregoing are misrepresentations, but not

dishonesty, fraud or deceit, within the meaning of Canon IV.4.1(h)(6).

The Third Charge

The third charge is that Bishop Bruno is guilty of Conduct Unbecoming a

Member of the Clergy, defined as follows in Canon IV.2:

Conduct Unbecoming a Member of the Clergy shall mean any

disorder or neglect that prejudices the reputation, good order and
discipline of the Church, or any conduct of a nature to bring material

7
On page 4 of his Closing Brief, Bishop Bruno states that Canon Voorhees admitted during the hearing that her last
pastoral letter was in fact a resignation. He has two citations to the hearing transcript to support that statement.
Neither does.

75
 discredit upon the Church or the Holy Orders conferred by the
Church.

The facts and findings of the Hearing Panel regarding misrepresentation

apply with equal force to the Conduct Unbecoming charge, and are accordingly

adopted and incorporated by reference.

Bishop Bruno also engaged in Conduct Unbecoming when he locked St.

James the Great and has kept the doors locked for nearly two years. F.95, F.97,

F.100, F.106. Church buildings do not belong to any one priest, congregation,

bishop or diocese; they belong to the entire Church. The Dennis Canon declares

that 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. Canon I.7.4. Bishop Bruno

himself relied upon the Dennis Canon in his 2004 lawsuit against the St. James

Anglicans, and in the other lawsuits he filed against the other seceding

congregations. In the verified complaint in the St. James case, Bishop Bruno wrote

movingly about the plight of the Episcopal congregation in exile, denied the use of

the St. James church for baptisms, weddings and funerals. F.8.

Bishop Brunos current conduct is inconsistent with his sworn verified

complaint in 2004. Kathi Liebermann provided a concrete, human example of the

continuity of the St. James congregation, from the Episcopal congregation in the

76
building before 2004, to the Episcopal congregation in exile during the Anglican

litigation, to the Episcopal congregation back in the building from late 2013

through early 2015, and now in exile again. F.9.

In his deposition, Bishop Bruno testified, correctly, that the building is the

asset. The church is the people. Depo Tr. (Ex. 299) 126. Although the building

is an asset, Bishop Bruno is not the CEO of a commercial, for-profit company.

The asset is a consecrated church that should be used for the glory of God and

worship by a congregation, rather than sold to build condos and then left idle and

useless after the sale fell through, almost two years ago. To keep a consecrated

church building locked for no reason is to engage in Conduct Unbecoming.

Bishop Brunos conduct has created immense public outcry, town hall meetings,

city council meetings, neighborhood surveys, breaking of contracts, lawsuits and

media attention. F.67-68, F.70-71, F.73, F.75-77, F.79-82, F.85, F.90, F.92, F.99.

Having the church locked has created disorder and prejudiced the reputation of the

Episcopal Church.

There was no good reason to lock the church on June 29, 2015. The

congregation could have remained there while the legal issues played out in the

two court cases pending at that time. That indeed was the request of one lay leader

of St. James, Tony Crowell, in an email on the morning of June 29 to Bishop

77
Bruno. Ex.141. The response from Mr. Tumilty, on behalf of Bishop Bruno, was

curt. The date for the last service was set by Cindy+ as June 28th. She has

resigned her position as Vicar of the St. James the Great mission congregation and

the Bishop has accepted her resignation effective midnight Sunday June 28. The

Bishop has not made a determination as to whether a member of the clergy will be

assigned by him to the congregation. In any case, the last worship service to be

held at the church facility was this past Sunday. Ex.141.

Bishop Bruno also testified that he has kept the Church closed because of

Canon Voorhees disobedience8. Depo Tr. (Ex. 299) 158-159. Further, he

strongly suggested his intent to punish her when this proceeding is over. Depo. Tr.

(Ex. 299) 165-166. Bishop Brunos conduct, locking the St. James the Great

congregation out of their church, and keeping them locked out month after month,

has been the subject of extensive press coverage, both local and national. Almost

all of this coverage has been critical of Bishop Bruno and some has been critical of

the Episcopal Church generally. None of it is good for the Church. It is hard for

anyone to understand why a Bishop would lock a congregation out of a church.

The Hearing Panel concludes that one of the reasons Bishop Bruno keeps the doors

8
Canon Voorhees has been remarkably obedient, and the Hearing Panel so finds. A good example of that occurred
when Bishop Bruno instructed her at the April 13 meeting not to talk about the done deal to sell the property. She
obeyed him. Tr. 285-86. It was not until a month later, when Bishop Bruno informed the congregation of his
decision that Canon Voorhees flock learned of his decision. She kept her mouth shut, as Bishop Bruno had
instructed her.

78
locked is to punish Canon Voorhees and the St. James congregation for what he

views as their defiance of him. More recently, the testimony of Canon Voorhees,

elicited by Bishop Bruno's own counsel, that Bishop Bruno scared the shit out of

Bishop Glasspool, has also been the subject of extensive press coverage. See

Episcopal News Service March 30, 2017.

After the trial and briefing of this case one of the Complainants informed the

President of the Hearing Panel that Bishop Bruno may have entered into a contract

to sell the St. James property. Exs. 306 and 307. By email dated June 14, 2017,

legal counsel to the Hearing Panel, acting for the President, circulated the

Complainants emails to counsel for Bishop Bruno, the Church Attorney and the

members of the Hearing Panel, and directed that counsel express their views on the

matters referred to in the emails from the Complainant by 5:00 p.m. Eastern Time

on June 15, 2017, including the exact status and related documentation of the

alleged sales contract. Ex. 308

Both counsel submitted timely responses. Exs. 309 and 310. Most of

Bishop Brunos response focused on and objected to the screen shot attached to

Exhibit 307. He did not address the substance of the Complainants allegation that

there is a pending sale, or furnish any documentation. Nor did he make any

reference to a need for confidentiality. The Church Attorney stated that the

79
Respondent did not comply with the Hearing Panels directive and observed that

Bishop Brunos counsel either knew or could learn the exact status of any pending

sale from Bishop Bruno. The Church Attorney also argued that if it were true that

Bishop Bruno had entered into a sales agreement that is an act of defiance and

should be enjoined.

The Hearing Panel considered these matters and took them extremely

seriously. Bishop Brunos efforts to sell the St. James property have been at the

heart of this case from the beginning. If Bishop Bruno entered into a contract to

sell the St. James property before the Hearing Panel decided the case, that conduct

is disruptive, dilatory and otherwise contrary to the integrity of the proceeding.

The same applies to his failure to supply information concerning the alleged sale.

Canon IV.13.9(a).

Thus, acting under the authority of Canons 13.9(a) and IV.14.6, on June 17,

2017, the Hearing Panel imposed the following sanctions on Bishop Bruno, acting

individually, or as Bishop Diocesan, or as Corp Sole, or in any other capacity: he

was prohibited from selling or conveying or contracting to sell or convey the St.

James Property until further order of the Hearing Panel. Ex. 311. The imposition

of sanctions was effective immediately.

80
 Four days later, by email dated June 21, 2017, legal counsel to the Hearing

Panel, again acting for the President, asked Bishop Brunos counsel if Bishop

Bruno intended to respond on the merits to the June 17, 2017 request, i.e., whether

there was a pending sale or contract to sell, and, if so, to provide all relevant

documentation. Ex. 312. Thus, the Hearing Panel gave Bishop Bruno a second

opportunity to address the alleged sales contract on the merits.

Bishop Brunos counsel responded by email dated June 22, 2017 (Ex. 313).

The response did the following: (1) It constituted an acknowledgment that the

Complainants claim that Bishop Bruno may have entered into a contract to sell the

St. James property was true. (2) It stated that Bishop Bruno, acting as Corp Sole,

had entered into a confidentiality agreement and a contract to sell the property on

April 19 and May 20, 2017, respectively. (3) It identified the prospective

purchaser, Burnham-Ward Properties LLC. (4) It said the Standing Committee had

authorized a sale five months earlier, on November 16, 2016. (5) It attached the

Standing Committee minutes of November 16, 2016, which contain no reference to

Burnham-Ward Properties LLC or any specific contract. That consent was thus

uninformed, a blank check to Bishop Bruno and not in compliance with Canons

II.6.2 or .39. (6) It referred to, but did not include, a Confidentiality Agreement

9
It also shows that even when he acts as Corp Sole, Bishop Bruno knows how to seek Standing
Committee consent, when he chooses to.
81
between the buyer and Bishop Bruno or any modification of that agreement. (7) It

stated that the buyer and Bishop Bruno had fully complied with the sales contract,

that escrow on the sale of the property was scheduled to close on July 3, 2017, that

Bishop Bruno, as Corp Sole, had to sign documents for the escrow to close, and

that if Bishop Bruno refused to sign the documents he would be in default under

paragraph 16, which allows the buyer the option to terminate the agreement, seek

specific performance in court within 60 days, and seek out-of-pocket costs. These

admissions by Bishop Bruno mooted and made irrelevant his objections in Exhibit

310.

Legal counsel to the Hearing Panel immediately informed (Ex. 314) Bishop

Brunos counsel that the Hearing Panel would want copies of the sales contract and

other documentation referred to in Exhibit 313. This was the same information the

Hearing Panel had requested eight days earlier, in Exhibit 308, and which Bishop

Bruno had ignored in his response. Ex. 310.

The next day, June 23, 2017, legal counsel to the Hearing Panel sent another

request for further information and sought the view of the Church Attorney on

these matters. Ex. 315. The Church Attorney responded the same day (Ex. 316)

that none of these matters, including the November 16, 2016 minutes of the

Standing Committee, had been provided in the pre-hearing disclosures mandated

82
by Canons IV.13.3 and .7, and that he had not seen the November 16, 2016

Standing Committee minutes and its attachment until June 23, 2017.

Later in the day on June 23, 2017, Bishop Brunos counsel stated that most

of the documents the Hearing Panel requested were subject to a Confidentiality

Agreement, and asked whether the Hearing Panel would agree to be bound by its

terms. Ex. 317. The Hearing Panel declined on June 26, 2017. Ex. 318.

Also on June 23, 2017, Bishop Bruno appealed the imposition of Sanctions

to the Disciplinary Board for Bishops (Ex. 321). Among other attachments to his

appeal, Bishop Bruno included a letter from the Recording Secretary of the

Standing Committee and minutes of a Special Meeting of the Standing Committee,

both dated two days earlier, June 21, 2017 (Ex. H to Ex. 321). It is clear from the

text of both documents and the timing of the Special Meeting that the impetus for

the Special Meeting was to support Bishop Brunos appeal to the Disciplinary

Board. In the documents, the Standing Committee renewed its consent to sale of

the St. James property in the November 16, 2016 minutes. As noted above, that

consent was not in compliance with Canons II.6.2 or .3. Moreover, the Standing

Committees action of June 21, 2017 is not a proper consent on its own, for it does

not refer to any specific sale and was given a month after the May 20, 2017

83
contract with Burnham-Ward Properties LLC, and is therefore not a previous

consent to that contract.

On June 28, 2017, the Church Attorney submitted an amendment to his post-

trial brief in which he recommended that Bishop Bruno be deposed (he had

recommended against deposition and suspension in his earlier post-trial brief) and

that the Hearing Panel recommend a forensic audit of Corp Sole. On June 30,

2017, Bishop Bruno responded. Among other things, he referred to a conversation

among the Chair of the Conference Panel, Bishop Bruno, his Advisor and counsel

at the conclusion of the Conference Panel proceedings over a year ago, on June 30,

2016. He invited the Hearing Panel to inquire of the circumstances with the

Disciplinary Board. Aside from the facts that Bishop Brunos counsels statement

was not supported by statements from any of the other alleged participants in this

conversation, and that he had never before referred to this alleged conversation in

the history of this case before the Hearing Panel, Canon IV.12.8 (Proceedings

before the Conference Panel shall be confidential except as may be provided in an

Order or Accord or as provided elsewhere in this Title. No statements made by

any participant in such proceeding may be used as evidence before the Hearing

Panel) expressly forbids any consideration by the Hearing Panel of the alleged

conversation.

84
 Applying the de novo standard of review mandated by Canon IV.13.9(c), the

Disciplinary Board sustained the Hearing Panels imposition of sanctions and

denied and dismissed Bishop Brunos appeal on July 7, 2017. Ex. 322. On the

basis of its independent review, the Disciplinary Board reached the same

conclusion that the Hearing Panel reached on June 17, 2017. The Disciplinary

Board stated:

By contracting to sell the St. James property while the conflicts

involving that property were still under review and consideration by
the Hearing Panel, Respondent disrupted and interfered with the
integrity of the process of the Title IV proceeding. Respondents
actions undermined what the canons intend to be a process of
reconciliation.

Bishop Brunos secret efforts to sell the St. James property have been at the

heart of this case since the beginning. The details, and particularly the connection

with the Anaheim property, were revealed only through discovery. Bishop Bruno

kept his most recent effort to sell the property secret from the Hearing Panel. It

was only because one of the Complainants read something or otherwise got wind

that there might be a sale and informed the Hearing Panel that it knew of these

developments. The Hearing Panel gave Bishop Bruno an opportunity to explain.

He objected. He obfuscated. He did not respond on the merits. The Hearing Panel

thus imposed sanctions, but also gave him another chance. He then disclosed the

essential and critical fact that yes, he is trying to sell the property, and who the

85
buyer is. Having disclosed the identity of the prospective buyer, the date of the

contract, alleged penalties in the contract if the seller does not perform, and the

status of the escrow or closing, he hid behind an alleged confidentiality agreement,

which he would not disclose. He refused to provide any information that would

enable the Hearing Panel to assess his position. He then sought to put the Hearing

Panel on terms: agree to confidentiality or you do not get the information you

want.10

Bishop Brunos actions are contemptuous of the Hearing Panel, Title IV and

the Canons of the Church. They are disruptive. They are dilatory. They infringe

on the integrity of these proceedings. They prejudice the good order and discipline

of the Church. They bring material discredit upon the Church and the Holy Orders

conferred by the Church. They are material and substantial and of clear and

weighty importance to the ministry of the Church. They are Conduct Unbecoming

a Member of the Clergy. Canons IV.2; IV.3; IV.13.9.

10
That he had entered into a confidentiality agreement with the buyer is no answer. Bishop
Bruno knew that the proposed sale was highly relevant to these proceedings. The alleged
confidentiality agreement was an excuse to hide the facts from the Hearing Panel and to put the
Hearing Panel in a box. Similarly, if the sales contract contained penalties if Bishop Bruno or
Corp Sole failed to close that is a problem of Bishop Brunos own making.
86
 Decision as to All Charges

The Hearing Panel finds that all the offenses committed by Bishop Bruno

are material and substantial or of clear and weighty importance to the Ministry of

the Church. Canon IV.3.3.

Bishop Brunos Further Defenses

In footnote 16 on page 16 of his Closing Brief, Bishop Bruno reserves his

objections to [certain identified alleged] procedural violations of the Church in this

proceeding. Bishop Bruno has not proven any such violations. Moreover, the

allegations, even if they had been proven, are, by Bishop Brunos own

characterization, procedural, and would not and did not cause material or

substantial injustice to be done or seriously prejudice Bishop Brunos rights.

Canon IV.19.28. The Hearing Panel accordingly overrules these objections.

REMEDIES

Under the Canons the Hearing Panels task is not simply to determine

whether Bishop Bruno has violated the Canons. The Panel is charged with

fashioning an appropriate remedy. The Hearing Panel has broad authority. Canon

87
IV.17.6 allows for suspension or deposition of a Bishop. Canon IV.14.6, as it

applies to Bishops by operation of Canon IV.17, provides that

An Order issued by a Conference Panel or Hearing Panel may (a) provide

any terms which promote healing, repentance, forgiveness, restitution,
justice, amendment of life and reconciliation among the Complainant,
Respondent, affected Community and other persons; (b) place restrictions on
the Respondent's exercise of ministry; (d) limit the involvement,
attendance or participation of the Respondent in the Community; or (e) any
combination of the foregoing.

It is the decision and sentence of the Hearing Panel that:

(A) Bishop Bruno is suspended for three years. During the period

of his suspension Bishop Bruno shall refrain from the exercise of the gifts of the

ministry conferred by ordination (Canon IV.2, definition of Sentence) and not

exercise any authority over the real or personal property or temporal affairs of the

Church (Canon IV.19.7).

(B) The Hearing Panel declines to depose Bishop Bruno.

(C) The Hearing Panel is not aware of any evidence supporting a need for

a forensic accounting. If the Church Attorney possesses such evidence he should

present it to the appropriate authorities.

88
 (D) After thorough and detailed consideration of facts, positions,

contentions, testimony and documents, the Hearing Panel has concluded that the

scope and severity of Bishop Brunos misconduct, as described above, have

unjustly and unnecessarily disturbed the ministry of a mission of the Church. St.

James the Great is a casualty of Bishop Brunos misconduct acting as Diocesan

and Corp Sole. While it is beyond the authority and ability of the Hearing Panel to

fully assess what might have happened if St. James the Great had been allowed to

continue its ministry in its church facility, there is ample evidence of its viability

and promise to convince the Hearing Panel that St. James the Great was robbed of

a reasonable chance to succeed as a sustainable community of faith.

While Canon IV.14.6 would allow the Hearing Panel to take action for the

benefit of St. James the Great, the Hearing Panel has concluded that Title IV

disciplinary actions are not designed to address the complexities of the specific

diocesan property issues that are before it. The Hearing Panel believes that

bishops do and should have authority over mission property and that Standing

Committee review and approval is a crucial part of the fabric and polity of the

Church. But, more importantly, the Hearing Panel is convinced that the Diocese of

Los Angeles, particularly its Standing Committee with the supportive leadership of

its newly ordained Coadjutor, must consciously choose to take part in a process of

self-examination and truth telling around these unfortunate and tragic events.
89
Otherwise, justice, healing, restitution and reconciliation, the hallmarks of Canon

IV.1, will not be possible in the long run in the Diocese of Los Angeles, no matter

what might be imposed from the outside by force of canon.

After hearing this entire unfortunate case and after prayerful deliberation the

Hearing Panel reaches a definite and clear conclusion: The Hearing Panel

strongly recommends to the Diocese of Los Angeles that as a matter of justice

it immediately suspend its efforts to sell the St. James property, that it restore

the congregation and vicar to the church building and that it reassign St.

James the Great appropriate mission status.

This Order does not supersede the Partial Restrictions on the Ministry of

Bishop Bruno placed by the Presiding Bishop on Bishop Bruno on June 28 and

August 1, 2017. Canon IV.7.13.

These measures are necessary and proper to the Hearing Panels exercise of

its jurisdiction and to accomplish the purposes and goals of Title IV.

90
Issued this Second day of
August, 2017 The Rt. Rev. Herman Hollerith, IV, President

The Rt. Rev. Nicholas Knisely

The Rev. Erik Larsen

Ms. Deborah Stokes

31479294v2

91