Diocese won’t receive legal fees

The Episcopal Diocese of Los Angeles on Friday lost its bid to recover attorneys fees and court costs from the church and some of its members who voted to break away from the Episcopal church in 2004.

The split led to a bitter legal battle over St. James’ Via Lido Campus.

“The local church is free of the specter of attorneys fees and the diocese suffered a significant defeat,” said attorney Daniel Lula, who represents St. James.

The church property dispute went all the way to the California Supreme Court. In the case, the diocese claimed it had a right to keep St. James’ Newport Beach church after it left the Episcopal Church. The state Supreme Court ruled in favor of the diocese in January.

St. James announced earlier this month it would take its case to the U.S. Supreme Court.

St. James cut ties with the Episcopal Church in 2004, over differing views on theology and homosexuality. The Newport Beach church became one of three conservative Southern California parishes that placed themselves under the jurisdiction of a Ugandan bishop after the Episcopal church consecrated a gay bishop in 2003. Other Episcopal bishops began sanctioning gay marriages about the same time.