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House of Prayer v. Evangelical Association for India11/5/2003
CERTIFIED FOR PARTIAL PUBLICATION
Defendants Evangelical Association for India (EAI) and Jit Pegany appeal from a judgment rendered by the trial court in favor of plaintiffs House of Prayer: Renewal and Healing Center of Yuba City and Om Pegany. Defendants claim the trial court erred in granting the specific enforcement of a contract to transfer church property because the agreement violated the statute of frauds and lacked sufficient consideration.
We disagree and shall affirm the judgment.
In the published portion of the opinion we hold that the time of performance of an act required for the sale of property subject to the statute of frauds may be implied pursuant to Civil Code section 1657.
FACTUAL AND PROCEDURAL BACKGROUND
Defendant Jit Pegany founded EAI in 1975. He is the president and chairman of the board of EAI. EAI began with one church in Phoenix, and over the years has branched out to California, India , England, and Canada.
Om Pegany is Jit's nephew. Om was licensed to preach by EAI in December 1990. With Jit's help, Om started the House of Prayer church in 1991. He was later ordained by EAI in 1997.
House of Prayer purchased a shopping center on Garden Highway for use as their church building. The property was purchased for approximately $250,000, and the deed was placed in the name of Om and his wife. The property was later refinanced in the amount of approximately $350,000 to pay for remodeling.
In late 1996 or early 1997, the church property was deeded to EAI in order to take advantage of EAI's tax exempt status. Om and his wife and two other House of Prayer members remained guarantors on the loan.
Beginning in late 2000, a number of disputes developed between Om and Jit regarding church matters. On January 9, 2001, Jit presented Om with a letter containing three options. The letter read:
"After careful and prayerful consideration, the Board of Evangelistic Association for India is submitting the enclosed 3 options for your review. Our Board members feel that only by taking the measures outlined in option 1, that our church may again be united as the Lord would want. If option 1 is not agreeable to you, then we feel our only option is to revoke your License and allow you to go on your own with either option 2 or 3.
It is with great disappointment and heartbreak that we feel this action must be taken. It is our responsibility as Board Members to supervise and correct those who are ordained under our covering.
The EAI Board members encourage you to prayerfully decide which option you will take. A decision must be submitted to us in writing by Saturday, January 13, 2001, by 5:00 p.m. The EAI Board members will make an announcement regarding the future of the church on Sunday, January 14, 2001 at 10:00 a.m."
The three options that followed were each initialed by Jit. The first option allowed Om to remain pastor of the House of Prayer under Jit's leadership. It specified the church property would belong to EAI and would remain in EAI's name.
The second option provided as follows:
"EAI will sever all ties to the Church.
All funds contributed by EAI or Jit Pegany since 1993, in the amount of $585,886.00, will be considered a donation to the Church, with no further obligation.
Om or other party will re-finance current mortgage of the Church property.
Ordination Certificates and Licenses issued by EAI to Om will be immediately revoked.
House of Prayer checking account will be closed and funds will be given to new account."
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