In a judgment delivered on 26 June, Justice Finanzio approved an agreement between longtime community member Marcel Haddo (former Musa Haddo) and His Holiness Moran Mor Ignatius Aphrem II, Patriarch of Antioch and Supreme Head of the Syriac Orthodox Church, after the parties reached a settlement through mediation.
The dispute centred on approximately 17 hectares of church-owned land at 75 Whites Lane, Mickleham, north of Melbourne, which was originally purchased in the 1990s using proceeds from the sale of the community's former church property in Westmeadows, together with donations and loans from parishioners.
Part of the Mickleham property was sold to a residential developer in July 2023 for more than A$30 million, prompting disagreement over how the land and sale proceeds should be administered.
Mr Haddo, one of the original trustees of the Mar-Yacoub Syriac Orthodox Benevolent Society established in 1979, argued the property had been entrusted to the Patriarch for the benefit of the local St Yacoub congregation, whose members had raised the funds to acquire and develop the land. The Patriarch maintained that the property was held in trust for the broader mission of the Syriac Orthodox Church of Antioch as part of its hierarchical church structure.
Justice Finanzio noted that while the parties held "deeply held views and strong convictions," they ultimately reached a comprehensive settlement that avoided what would likely have been an expensive and lengthy trial involving numerous factual disputes.
Court approves charitable trust
The Court declared that the Mickleham land is held upon a charitable trust "for the maintenance and propagation of the Syriac Orthodox Christian faith through the Syrian Orthodox Church of Antioch."
In reaching that conclusion, the Court considered the history of the St Yacoub community, the original objectives of the Benevolent Society, the purchase and use of both the Westmeadows and Mickleham properties, and the 1995 decision by trustees to transfer ownership of the land to the office of the Patriarch.
Justice Finanzio found there was sufficient material to conclude that the trust's purpose extended beyond the local parish to the broader mission of the Syriac Orthodox Church.
New trustee to oversee assets
A key outcome of the settlement is the replacement of the Patriarch as trustee with a newly established Australian company limited by guarantee, which will act as the corporate trustee for the charitable trust.
The Court also approved an administrative scheme negotiated by both parties that establishes how the trust property will be managed into the future.
Justice Finanzio described the arrangement as carefully balancing "the interests of the local community and the broader church," noting that it provides clear governance where previously there had been no formal trust instrument specifically governing the Mickleham property.
The Attorney-General of Victoria, who appeared in the proceedings as protector of charitable trusts, supported the settlement and the Court-approved administrative scheme.
As part of the settlement, Mr Haddo agreed to withdraw the caveat he had lodged over the Mickleham land following the 2023 sale. The caveat had prevented unrestricted use of the sale proceeds while the ownership dispute was before the Court. Justice Finanzio also released Mr Haddo from the undertaking for damages he had provided when lodging the caveat.
The Court ordered that legal costs incurred by the Patriarch, Mr Haddo and the Attorney-General be paid from the trust property in accordance with the parties' agreement.
Justice Finanzio acknowledged Mr Haddo's role in preserving the trust assets during the litigation, noting his willingness to assume personal risk through his undertaking as to damages and that he had incurred legal costs significantly exceeding the amount to be reimbursed.
The judgment brings to an end proceedings that began in 2023 and involved multiple related cases before the Supreme Court.
