Macedonian Orthodox Community Church v His Eminence Petar The Diocesan Bishop & Anor

The Macedonian Orthodox Community Church (the Church) brought proceedings against His Eminence Petar The Diocesan Bishop (the Bishop) and the Macedonian Orthodox Diocese of Australia and New Zealand (the Diocese). The dispute concerned the ownership and control of church property, specifically the land and buildings at 21-23 Station Street, Carlton, Victoria. The Church sought declarations that it was the beneficial owner of the property and that the Bishop and the Diocese held it on trust for the Church. The case was heard in the High Court of Australia.

The central legal issues before the High Court were whether the Bishop and the Diocese held the Station Street property on trust for the Church, and if so, what the nature and extent of that trust were. This involved determining the legal effect of certain trust deeds and the relationship between the Church, the Diocese, and the broader Macedonian Orthodox Church structure. The court also had to consider whether the Bishop and the Diocese had acted in breach of any such trust.

The High Court examined the terms of the trust deeds and the constitution of the Macedonian Orthodox Church. Their Honours found that the property was conveyed to the Bishop and the Diocese upon trust for the use and benefit of the Macedonian Orthodox Community Church at Carlton. The court held that the Bishop and the Diocese were bound by the terms of these trusts and had acted in breach of trust by purporting to sell the property without the consent of the Church. The legal principles applied included those relating to express trusts, breach of trust, and the enforcement of charitable trusts.

The High Court ordered that the Bishop and the Diocese were not entitled to sell the Station Street property and that they held the property on trust for the Church. The court also made declarations as to the beneficial ownership of the property and restrained the Bishop and the Diocese from dealing with the property in a manner inconsistent with the trusts.