Insolvent archdiocese seeking court order to gain access to Portugal Cove South church
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The Roman Catholic Episcopal Corporation of St. John's is turning up the pressure on a group of defiant Catholics in Portugal Cove South who have taken extreme action to prevent their small, rural church on the southern Avalon Peninsula from being sold.
The corporation, which is the land-holding arm of the St. John's archdiocese, has applied to the Supreme Court of Newfoundland and Labrador for an injunction that prevents anyone from interfering with rightful access to the property.
The corporation is also seeking an order from the court declaring that the archdiocese is entitled to sell Holy Rosary church as part of its ongoing and historic liquidation of assets.
The application will be be heard by Justice Garrett Handrigan on April 4.
Court documents filed by lawyers for the corporation on March 14 allege that those who changed the locks on the church last fall, posted "No Trespassing" signs, and have spoken publicly about their opposition to a sale, have interfered with the operations of the corporation with actions that amount to "trespass and nuisance."
An unidentified person entered into an agreement in June 2024 to purchase the church, but backed out after the locks were changed and access to the property was restricted, according to the documents.
Actions having "chilling effect" on sale process
The documents include an affidavit from Archbishop Peter Hundt, who wrote that the corporation is the "legal owner" of the church and has been in "exclusive possession" of Holy Rosary since at least 1956.
Hundt also disputed a claim by community members that they held an "equitable interest" in the church stemming from their efforts to raise $134,000 to renovate the church more than five years ago.
He said the actions by members of the Portugal Cove South Historical Corporation — composed almost entirely of longtime parishioners of Holy Rosary — have had a "chilling effect" on efforts to sell the church, and other assets owned by the archdiocese.
"The [episcopal corporation] recently received correspondence from another parish stating that they refuse to allow their church to be sold and that they have plans to repeat what has happened in Portugal Cove South," Hundt wrote in his affidavit.
Geoff Budden, a lawyer for dozens of victims granted compensation due to abuse by Catholic clergy, said he will support the application when it is brought before Justice Handrigan next week.
He said small, rural churches like the one in Portugal Cove South are being listed for well below $100,000, and "if the community wishes to preserve the church, that shouldn't be a sum of money outside of their capacity to raise. Many other communities have done it," he said.
Cynthia Power, a member of the PCS Historical Corporation and one of the select keyholders for the church, declined comment when contacted Thursday by CBC News.
She said members of the historical corporation will meet in the coming days to plan a response to the pending court action.
Buyers not welcome in Portugal Cove South
Last fall, Power told CBC News that prospective buyers of the church "will not be welcome in our community, and we do not want this church to be anything other than what it is now."
The archdiocese has been under court-ordered bankruptcy protection since late 2021, after it was found to be vicariously liable for the abuse suffered by those who attended the former Mount Cashel orphanage in St. John's, and at the hands of clergy or lay religious orders linked to the archdiocese.
Last summer, Justice Handrigan approved a settlement of roughly $104 million to be shared among nearly 300 claimants, but the settlement total is expected to grow because Handrigan ruled in favour of 59 victims in December who appealed after their claims were disallowed during the independent review process.
As of September 2024, a pool of funds totalling just under $40 million had been raised through the sale of assets, including churches, parish halls, buildings and vacant land.
An initial payment of roughly $22 million was distributed to victims last fall, but the archdiocese is still well short of the money needed to settle the claims.
"The [episcopal corporation] has been acting in good faith" to liquidate its assets in and address its liabilities to the victims of sexual abuse, the court documents read.
Archbishop Hundt has declined repeated requests for a recorded interview, but has said that all Catholics must "accept the hurt and consequences of the sins committed against the innocent."
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The Province
a day ago
- The Province
Catholic cemetery bookkeeper sued by Vancouver archdiocese for $575,000
Lawsuit filed in B.C. Supreme Court alleges she wrote cheques over nine years while she was in charge of finances for Gardens of Gethsemani in Surrey and St. Peter's Cemetery in New Westminster B.C. Supreme Court in Vancouver. Photo by Arlen Redekop / PNG The bookkeeper for the Gardens of Gethsemani Catholic Cemetery in Surrey is being sued for the return of $575,000 after her employer discovered years of unauthorized payments, according to a lawsuit filed in B.C. Supreme Court. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors The Roman Catholic Archdiocese of Vancouver filed a notice of civil claim alleging that Marcia Terlaak wrote cheques to herself totalling at least that amount over the nine years she was operations manager for the largest Catholic cemetery in B.C., which covers 16 hectares in Surrey. Her husband, Dustin Terlaak, is named as co-defendant for his 'full knowledge and participation,' the case alleges. 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Favere-Marchesi, commenting previously on a case of an employee being accused of stealing from the City of Surrey and not on the cemeteries lawsuit, said this type of individual-worker fraud is also more common in the public than the private sector, where owners have to answer to shareholders where there are internal control systems. 'When there are weaknesses in those systems, it is not unusual for fraud to happen for long periods of time before they're discovered,' he said. And fraud is easier if one person is responsible for all finances because with two or more people, 'to commit a crime, you would need collusion,' he said. Also, employees who handle finances need to be properly assessed for the 'triangle of fraud' characteristics — that is, did they have motivation, opportunity and rationalization to be able to steal funds, he said. Motivation would include anyone who lived beyond their means, for instance, and should be flagged, he said. slazaruk@ Read More Vancouver Whitecaps Vancouver Canucks Vancouver Canucks NHL News


Vancouver Sun
2 days ago
- Vancouver Sun
Catholic cemetery bookkeeper sued by Vancouver archdiocese for $575,000
The bookkeeper for the Gardens of Gethsemani Catholic Cemetery in Surrey is being sued for the return of $575,000 after her employer discovered years of unauthorized payments, according to a lawsuit filed in B.C. Supreme Court. The Roman Catholic Archdiocese of Vancouver filed a notice of civil claim alleging that Marcia Terlaak wrote cheques to herself totalling at least that amount over the nine years she was operations manager for the largest Catholic cemetery in B.C., which covers 16 hectares in Surrey. Her husband, Dustin Terlaak, is named as co-defendant for his 'full knowledge and participation,' the case alleges. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Marcia Terlaak, whose online LinkedIn account as recently as a month ago listed her as Coquitlam's cemetery supervisor, was fired from the Gardens of Gethsemani in July 2021 and received a severance. She had worked there in charge of all finances since 2009. Her role included keeping books for a second Catholic cemetery, St. Peter's in New Westminster, where she had sole signing authority. The lawsuit alleges money is also missing from its accounts. The lawsuit claims that in 2018, three years before she was let go, Terlaak stopped reconciling the bank account for St. Peter's, and in July of that year stopped recording transactions in the St. Peter's bank account. The Roman Catholic Cemeteries of the Archdiocese of Vancouver, which operated both cemeteries, alleged that in August 2023 it discovered that between mid-2012 and up to May 2021, Terlaak had issued cheques from the cemetery accounts to herself, to personal credit card accounts in her name, and to other names. And it alleges she also withdrew 'unconventionally large amounts' from petty cash, and that all the unauthorized payments were for the 'personal benefit, gain and profit of herself and/or Dustin Terlaak.' The lawsuit alleges her husband's participation included 'receiving, converting, hiding and otherwise benefiting from the funds misappropriated' by her. The lawsuit claims they used the money in 2019 to purchase a Surrey property in Panorama Ridge, selling it, and then buying a White Rock condo on North Bluff Road, where they still live. The four-bedroom, 3,550-sq.-ft. Panorama Ridge property was listed on a realtor's website this week for $1.3 million. The two-bedroom, 1,710-sq.-ft. White Rock condo was purchased for $775,000, according to an online real estate website. The lawsuit said the cemeteries have suffered damages, losses and expenses because of the fraud, including loss of use of the funds and the cost of investigating. They are seeking an order that the Terlaaks pay all the money back to them, plus aggravated and punitive damages. The lawsuit asked the court to place a certificate of pending litigation against the White Rock condo and place all of the couple's other personal property, including proceeds from the sale of the Surrey property, furniture, household items, jewelry, any vehicles and any other real estate into a 'substantive constructive trust.' The Terlaaks 'do not have the ability to personally pay an award of damages equal to the funds' lost by the cemeteries, it said. None of the allegations have been proven in court. Messages left with the Terlaaks were not returned on Tuesday. The cemeteries' lawyer declined to comment. It's not surprising fraud can continue for years at not-for-profits where there are not usually enough employees to ensure separation of duties, such as having the same person responsible for recording, custody and authorizing of funds, said Michael Favere-Marchesi, associate accounting professor at Simon Fraser University's Beedie School of Business. Favere-Marchesi, commenting previously on a case of an employee being accused of stealing from the City of Surrey and not on the cemeteries lawsuit, said this type of individual-worker fraud is also more common in the public than the private sector, where owners have to answer to shareholders where there are internal control systems. 'When there are weaknesses in those systems, it is not unusual for fraud to happen for long periods of time before they're discovered,' he said. And fraud is easier if one person is responsible for all finances because with two or more people, 'to commit a crime, you would need collusion,' he said. Also, employees who handle finances need to be properly assessed for the 'triangle of fraud' characteristics — that is, did they have motivation, opportunity and rationalization to be able to steal funds, he said. Motivation would include anyone who lived beyond their means, for instance, and should be flagged, he said. slazaruk@


Winnipeg Free Press
6 days ago
- Winnipeg Free Press
How the Vatican manages money and where Pope Leo XIV might find more
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