Trusts

First Circuit resolves dispute over religious real and personal property by reference to formal agreements

The First Circuit Court of Appeals has resolved a longstanding and complicated dispute between two congregations over control of the real and personal property of the Touro Synagogue in Newport, Rhode Island. In an opinion by Judge John J. McConnell, Jr., the trial court had found that an implied or constructive trust existed by which a New York Congregation Shearith Israel (CSI) held title to the property for the benefit of the Newport Rhode Island Congregation Jeshuat Israel (CJI). Congregation Jeshuat Israel v. Congregation Shearith Israel, 186 F.Supp.3d 158 (D.R.I. 2016), rev’d, 2017 WL 3276805 (1st Cir. 2017). That opinion enforced Rhode Island property law and reviewed objective evidence of the parties’ relationship to find that the New York congregation held the property for the benefit of the Newport congregation. In an opinion by Justice Souter, the First Circuit reversed on the ground that the First Amendment requires courts to refrain from involvement in …

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