In 1992, while serving as the rector of St. Josaphat Cathedral and chancellor of the eparchal chancery, he was appointed Apostolic administratorsede plena of the Ukrainian Catholic Eparchy of Toronto and titular bishop of Nyssa by Pope John Paul II.[2] His appointment proved controversial, as the incumbent bishop, 81-year-old Isidore Borecky, refused to retire even though he had passed the mandatory retirement age of 75 established by canon law. It was also rumored that Borecky had requested a coadjutor or auxiliary bishop, not an administrator, and that Father Danylak had not been nominated for the position by the Ukrainian Synod.[4] After six years of conflict between the two bishops, Bishop Lubomyr Husar, Apostolic administrator of Lviv, negotiated a resolution whereby Borecky retired and Danylak was reassigned to "special responsibilities in Rome", resulting in the vacancy of the Toronto eparchy effective June 24, 1998. Bishop Cornelius Pasichny of Saskatoon was appointed the new bishop on July 1 of that year.[5]