Sisterhood causing a Ruckus in the Neighborhood?

April 6th, 2015. By LucyC

Oh saints preserve us! The nuns that own one of New York’s oldest preschools have decided they want to get into the real estate game—shut the school, sell the building, maybe, and pocket several million, most likely. Problem is, the parents are mad as hell and have filed a lawsuit.

The school’s two brick brownstones, located in Chelsea, could be worth a cool $20 million—not exactly chump change, and the possibilities are likely not lost on the Sisters. Located on West 15th Street, the sisterhood bought the facility for $5,000 in 1901 then set it up as a school for the children of women (read single mothers) who worked in the meat packing district. Nice.

Over time the demographics have changed, and the school now looks after 55 little people—2-6 year olds, under the banner Nazareth Nursery Montessori. And it costs—both the parents and the nuns. The parents pony up $10,000 a year per child, which apparently makes it the cheapest Montessori school in the borough. The Sisters employ 14 lay teachers who they oversee.

According to school officials, the facility is losing $100,000 a year. So the school announced it would close in August. The parents, once they had collected themselves, filed for an injunction to stop the closure.

Praise the Lord and pass the Paperwork! According to the parents, the nuns at first gave no reason why the school was closing—it wasn’t until after the announcement of closure that school officials claimed the facility “was losing $100,000” and that “the building structure is precarious.”

The parents also allege that there are no building violations with the city and that the “financial state of the school and the corporation is excellent,” citing IRS documents showing revenue of $570,000 in 2013.

The parents say that “At no time over the past four years was any parent told that the school was having financial problems and might close.” So they have concluded that the only reason for the closure is, naturally, to capitalize on their asset.

“It is clear that the defendants plan to close the school, stop providing education to the children of working mothers, sell the school’s property and transfer the money to the Sisters of St. Francis to use for other purposes, none of which is to educate children,” the Manhattan civil suit says.

So, let’s see, there’s one set of property ownership rules for lay people and another for religious organizations? The primary difference being motive? Really?

A school spokeswoman, one Rochelle Casella, is said to have countered that the litigious Manhattan parents are too wealthy for the nuns’ charity. Well, possibly not the best defense, but there’s likely some truth in it.

“The demographics of the area have changed,” Casella said, adding that the buildings are “not up for sale” but said the nuns have also not decided what they will be used for after the school closes. Casella has reportedly vowed to “vigorously defend our position in court.”

If this continues, it’s very likely the Sisters of St. Francis will have to sell their real estate to pay their legal bills. Now wouldn’t that be a win-win.

This was posted on Monday, April 6th, 2015 at 9:49 pm and is filed under Crazy Sh*t Lawyers See, Emerging Issues . Feel free to respond, or trackback. Read our comments policy.