Hopes for an end to church dispute

Eva Matthews' bequest sits in the bank while the church wrangles over its control.

A long-running legal battle between a Far North Anglican priest and church hierarchy over who should control almost $500,000 of church funds resumed yesterday.

Canon Dennis Urquhart (Kaitaia), clergywoman Esther Mani (Awanui) and 32 of their supporters want the High Court in Auckland to order the ASB Bank to release money the late Eva Matthews left to the Parengarenga-Ahipara-Peria Anglican Maori Pastorate in 1995. Canon Urquhart said last week that the bequest was left with instructions that it be used by the pastorate for youth work north of Mangamuka. Interest and other funds had since increased the sum, held in a Kaitaia ASB account, to $490,000.

Canon Urquhart and Ms Mani claim that as authorised signatories they are entitled to operate the account. But a split in the pastorate has the Te Hui Amorangi ki Te Tai Tokerau Trust Board and others, led by the Rt Rev Te Kitohi Pikaahu, also claiming they should control the money.

Unable to determine who was entitled to the funds, the bank in 2002 suspended operation of the account, pending agreement between the competing claimants or a court ruling.

Justice Sarah Katz began hearing the rival claims yesterday.

Reasons for the bank account freeze emerged after a two-day hearing in the High Court at Whangarei in 2006, when Justice Allan said that Canon Urquhart, who had been vicar of the Ahipara-Peria pastorate for more than 30 years, was not on good terms with Bishop Pikaahu, who was appointed Bishop of Tai Tokerau in 2002.

The bishop approved the sacking of Canon Urquhart, and ordered a change of signatories to the pastorate account. Canon Urquhart and his supporters then elected their own vestry to assume control of the account.

Canon Urquhart refused to give up his signatory rights, claiming the money belonged to the church vestry, not the trust. Despite being sacked he continued to conduct services at 19 Far North churches, and said he would change the signatories only if a new priest approved by church members was appointed.

In a written decision in 2007, Justice Allan declined to determine ownership or control of the account as the court had not been provided with sufficient evidence, and not all parties with an interest in the proceedings had been before the court.

He also said church disputes should be kept out of the courts.

In its statement of defence for the High Court proceedings starting yesterday, the ASB says Canon Urquhart and the trust board continue to make competing claims to control of the account, and "it further appears from the decision of Justice Allan that a third party (namely a validly-appointed pastorate vestry) may be entitled to those rights".