Press Release: Legal Action Filed to Prevent Permanent Closure of St. Margaret’s School
FOR IMMEDIATE RELEASE
Contact: Chap Petersen
Email: jcp@petersenfirm.com
Phone: 571-459-2512 (main)
December 22, 2025
Tappahannock, Va. — Seven members of the St. Margaret’s School Board of Governors, who served during the 2024–25 academic year, have filed a lawsuit against the Church Schools of the Diocese of Virginia, or CSDV, based upon its recent closure of the historic girls’ school.
The all-girls boarding and day school opened in 1921 and was formally closed by its owner, the CSDV, on July 10, 2025. The complaint, filed in the Circuit Court of Essex County, seeks injunctive relief to prevent the dissipation of the school’s assets and ensure their use for the intended charitable purpose of providing a Christian education to young women in grades 8-12 at the Tappahannock campus.
The pleading states that the closure of St. Margaret’s violates trust law, breaches fiduciary duties, and disregards the charitable intent of donors who have contributed millions of dollars to the school over the years. The plaintiffs seek court intervention to prevent the CSDV from misusing, dissipating, or taking any action that would hinder the reopening of St. Margaret’s School. They have requested the appointment of a receiver or a new trustee to manage the school’s assets and operations, to preserve its mission, and to ensure the proper use of its resources.
In a previous complaint filed on July 15, 2025, a parent and two major donors of the school argued that St. Margaret’s had sufficient resources and students to support continuing operations and sought to halt the closure. At a July 23 hearing, an Essex County Circuit Court judge ruled that the plaintiffs’ complaint could proceed. On August 4, CSDV filed a legal motion to dismiss the amended lawsuit, arguing that the court lacked jurisdiction over the internal affairs of a religious organization.
The new lawsuit presents additional arguments by officers and other leaders of the St. Margaret’s Board of Governors, two of whom also served on the CSDV Board at the time of closure, and one who also chaired the St. Margaret’s Foundation, which holds donations and assets for the school's use. The plaintiffs and other alumnae have formed a new nonprofit, The Foundation for St. Margaret’s School, to continue the school's operations and to gain ownership of the campus.
Chap Petersen, attorney for the plaintiffs, states, “My clients don’t enter into this lawsuit lightly, but it has become evident that the CSDV has no interest in coming to the table to work with them on reopening the school. There’s been a lot of prayerful thought over their next steps since the July 23 hearing. They are committed to continuing St. Margaret’s mission and ensuring that the charitable contributions made by donors are used for their intended purpose.”
Key Allegations in the Complaint:
Breach of Fiduciary Duties: The CSDV and its trustees are accused of failing to act in good faith to preserve the assets of St. Margaret’s, instead reallocating resources to other schools within the CSDV portfolio. The complaint highlights conflicts of interest among CSDV board members, many of whom are affiliated with other schools that stand to benefit from the closure.
Violation of Charitable Trust Principles: The plaintiffs argue that the closure violates the cy pres doctrine under Virginia trust law, which requires that charitable assets be used for their original intended purpose. The complaint alleges that funds donated to St. Margaret’s were redirected to other schools, contrary to the donors’ wishes.
Failure to Honor Commitments: The CSDV established a financial benchmark, known as the "Cash Test," requiring the school to raise $2.6 million by June 30, 2025, to continue operations for the 2025-2026 academic year. Despite meeting this goal, the CSDV imposed additional conditions and prematurely announced the school’s potential closure, causing significant harm to enrollment and fundraising efforts.
St. Margaret’s School has been a cornerstone of the Tappahannock community for over a century, providing a unique educational experience for young women and serving as a beacon of opportunity in the Tidewater region. The plaintiffs urge the community to stand united in support of this vital institution and its mission.
For more information or to support the efforts to save St. Margaret’s School, please go to: www.smsontheriver.org or email info@smsontheriver.org.
