Scott E. Mollen

Religious Corporation Entitled To Possession Over Not-for-Profit Congregation—Case Could Be Decided Based on "Neutral Principles of Law"—Schism in the Lubavitch Hasidic Community

These summary proceedings "to recover possession of real property would be a simple licensee holdover proceeding pursuant to RPAPL §713(7), however, these particular properties have historical significance for all of the parties because the real properties here are owned and controlled by religious corporations organized under the laws of the State of New York." When dealing with actions or proceedings involving religious institutions, "the applicable rules of law and regulations, and their application to such institutions, excludes any consideration by the courts of the religious doctrinal differences and beliefs between the parties." This litigation is part of a "nearly two decade old controversy between these parties". Petitioner "A," a religious corporation, had been incorporated in 1940 in accordance with Chasidic ritual and "mode of worship of the Jewish Orthodox faith," "to acquire real property for that purpose."

"A" had purchased 770 Eastern Parkway ("770"), in Kings County which became, inter alia, the "central Synagogue of the Lubavitch movement." "M," a non-profit corporation had been incorporated in 1942, to operate the "educational arm of the Lubavitch movement" and had acquired the deed to 784-788 Eastern Parkway ("784-788"), property adjacent to "770". The central Lubavitch Synagogue now includes both buildings (Synagogue).

Congregation Lubavitch, Inc. (CLI) was incorporated in 1996, as a non-profit corporation, for the purpose of continuing the work of an unincorporated religious congregation known as "Congregation Lubavitch". CLI's members "regularly attended religious worship and studies at the Synagogue." The "Gabboim" are the "managers" of the Synagogue.