Ocean City Countersues St. Paul’s by the Sea Episcopal Church

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OCEAN CITY, Md. – The Town of Ocean City (OC) is countersuing St. Paul’s by the Sea Episcopal Church amid a months-long dispute surrounding the church’s zoning requirements as it functions as a homeless shelter.

The church made the announcement on Monday evening, saying the City is asking the court to shut down their Shelter By-the-Sea. This follows St. Paul’s original lawsuit, filed Jun. 16, seeking protections under the First Amendment and the Religious Land Use and Institutionalized Persons Act. The church is also seeking damages, citing stress caused by the ongoing dispute.

In a statement to WMDT, the Town confirmed their counterclaim, saying it sets forth their preliminary position regarding the pending litigation and the ongoing zoning violations.

“Our shelter is not separate from our ministry—it is our ministry,” the church said in a post on social media. “We believe that providing a safe place to sleep for people who have nowhere else to go is part of our religious calling and an expression of our faith.”

The countersuit comes days after the church shared a letter written by their attorney outlining the ongoing challenges the church has faced in obtaining a permit for plumbing work at the building. The letter details that St. Paul’s has tried to contract three separate plumbers to install laundry facilities, all of which were reportedly turned down by Ocean City. Specifically, St. Paul’s attorney says Benjamin Franklin Plumbing submitted a permit application on the church’s behalf, but it was denied without explanation or accompanying documents.

The Town of Ocean City criticized the church’s decision to share their attorney’s letter, arguing that correspondence between attorneys should facilitate resolutions of legal disputes rather than being used to influence public opinion. Further, the Town claims the aforementioned letter shared misinformation, and said that the City Solicitor’s office has responded directly to St. Paul’s counsel. 

In an effort to correct the public record, the Town of Ocean City said the following in a statement to WMDT on Jul. 21:

No plumbing permit application submitted by St. Paul’s by the Sea, or by any contractor on its behalf, has been denied by the Town nor has any contractor purporting to work on the Church’s behalf been turned away. The single application that was filed by Ben Franklin Plumbing did not meet the standards of the plumbing code and the contractor was advised that his permit application would need to be modified. On July 14, 2026, the Town was placed on notice by Ben Franklin Plumbing that they would not be moving forward with the project.  All records pertaining to any property seeking permits are generally part of the City’s public record. Additionally, it is worth noting that the Church property has never – in its decades-long history – had (or apparently needed) a washer and dryer with associated plumbing and electrical facilities. The Town remains committed to reviewing any properly submitted permit application and plan through its established processes and in accordance with applicable law and will process that application appropriately.

“We ask for your prayers for our guests, our congregation, the leaders of Ocean City, and everyone involved in this case,” the church concluded. “We remain committed to serving our neighbors with dignity, compassion, and love, and we will continue to share updates as they become available.”

This article was originally posted on Jul. 20 at 7:22 p.m. It has since been updated with statements from the Town of Ocean City. WMDT will continue to update this story as details are made available. 

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