St. Bonaventure dismisses bankruptcy complaint against Gallup Diocese

By Elizabeth Hardin-Burrola
Gallup Independent
March 08, 2014

http://gallupindependent.com/

ALBUQUERQUE — Less than three weeks after filing a complaint in the Diocese of Gallup’s bankruptcy case, St. Bonaventure Indian School and Mission has voluntarily dismissed its adversary proceeding against the diocese.

The dismissal is without prejudice, meaning it could be filed again.

On Jan. 30, St. Bonaventure’s attorney Charles R. Hughson filed a Complaint to Quiet Title against the Gallup Diocese in a dispute over real estate property. In financial documents filed in U.S. Bankruptcy Court for its Chapter 11 petition, the diocese had claimed it owned a number of parcels of land in Thoreau, where St. Bonaventure is located. In the complaint, Hughson argued that the property had been given to St. Bonaventure by the diocese, and that a former chief executive of the diocesan mission school had transferred property back to the diocese without authorization.

When contacted, Hughson declined to comment on the litigation.

Two weeks later, Hughson filed an amended complaint that added a legalese claim, “The Diocese Deed contains language that may limit the title conveyed to a fee simple subject to a condition subsequent.”

The warranty deed in question, signed by the late Bishop Donald E. Pelotte in September 1992, states that in the event the “property is no longer used as a Catholic Mission and School, said property shall revert to the Roman Catholic Diocese of Gallup.” According to court documents, St. Bonaventure sold at least one of the parcels of land two years later to private individuals in Thoreau.

Before bankruptcy attorneys for the Diocese of Gallup could respond to St. Bonaventure’s adversary proceeding, Hughson submitted the notice of dismissal on Feb. 17. Hughson cited federal rules regarding such action but did not provide any reasons for the decision to dismiss.