Category: Church Governance

CHURCH MEMBERSHIP UNDER SECULAR LAW

In many posts we have reported court opinions that resolved disputes by using only the denominational or local church governance documents. However, there may be some disputes that cannot be resolved using Neutral Principles of Law to enforce the governance documents. Membership verification may be one of those.

In Ceglar v Christ’s Harbor Church, Slip Op. (Tex. Civ. App. 2020) the trial court held verifying the 25 plaintiffs were actually church members required ecclesiastical determinations the Court was prohibited, and unwilling, to make. The appellate court affirmed and the case was dismissed. The newly hired pastor was accused of “inappropriate behavior and misconduct” by two female members. A faction of the membership demanded a congregational meeting to determine the pastor’s employment fate, but the church board never convened the meeting. Six months later the lawsuit followed. The membership secretary affirmed the plaintiffs were on the church membership rolls but a church board member testified the plaintiffs were for the most part expunged from the membership rolls after ninety days of non-attendance. The ninety-day rule was not in the governance documents but was put forth as an interpretation of the governance documents membership clause. To resolve whether listing on the membership roll or a ninety-day membership cancellation was dispositive, the Court held, would require an ecclesiastical determination by the Court.

Purging membership rolls every ninety days seems unworkable in a volunteer organization like a church and somewhat contrary to the inclusiveness most churches want to offer. Nevertheless, if that is the “rule,” the purge process should be carried out in a disciplined manner. Annual membership roll “clean up” is the preferred practice so that the qualified voters in congregational meetings can be identified and counted. The court was completely silent on whether the church board investigated or whether the allegations against the pastor were determined “not credible.”

LOCAL CHURCH SUPPRESSION BATTLES

Economics sometimes requires denominations to reorganize local churches. If a denomination has several local churches in a locale that separately are no longer economically viable, merging the congregations into a single viable congregation is a possible solution. Indeed, it is often a better solution than allowing each local church to become insolvent, bankrupt, or to remain crippled. Denominations that control the geographical reach of their local churches may “suppress” the no longer viable local church. The decision making process of determining merger partners, surviving church staff employees, locations, and property disposition, to name but a few, invariably seem to set off disputes.

In Pagac, et al v Diocese of Pittsburgh, Slip Op. (PA 2020)(unreported), the denomination sought to “suppress” and then merge several local churches into a single survivor. The process, like most such do, suffered from fits and false starts. Eventually, the process was completed. Several parishioners of one of the closed local churches challenged in court the decision to “suppress” their local church. They also alleged that because their local church was formerly designated as a survivor of the process, and then later withdrawn from survival, they were defrauded of donations. The trial court dismissed both claims. The appellate court affirmed the dismissal of the challenge to “suppression” holding the parishioners did not have “standing” to make the challenge. Because the local church was “suppressed,” the Court held, the parishioners membership in the suppressed church no longer existed to form the basis of any challenge. Also, because any such claim would require an inquiry into internal church governance, the Ecclesiastical Abstention Doctrine precluded the claim. However, the appellate court reversed the trial court’s dismissal of the fraud claim. The appellate court held that while the denomination might have defenses to such a claim fraudulent inducement was a recognized claim and it could proceed to determination of the claim.

Whether to “suppress” a local congregation and merge it into another local church in a hierarchical denomination would in almost all cases require an inquiry into church governance issues protected by the Ecclesiastical Abstention Doctrine. Fraud in the inducement is a difficult claim to prove. Further, even if such a claim survived a motion to dismiss as this one did, running the gauntlet of discovery and other motions likely will prove more difficult. For one thing, the parishioners will have to prove that their donations were intended to be restricted to the local church and that their restricted donative intent was known to the denomination. They would also have to show expressions of restrictive donative intent were accepted by the local church or the denomination. Rarely are restricted gifts accepted at the offering plate but have to be specially arranged. Also, merely showing their local church was formerly designated as a merger survivor will not be enough. They will have to prove the designation was represented as irrevocable. They will have to prove the designation was intentionally misrepresented.

SUBMISSION TO DENOMINATIONAL AUTHORITY

Usually, there is no doubt about whether a local church submitted to denominational authority because the governing documents, including the church bylaws or constitution, and property deeds reserve submission to the denominational authority. A court need not look beyond these documents. These documents are reviewable by a court applying Neutral Principles of Law. The Ecclesiastical Abstention Doctrine is rarely implicated.

In Korean New Life Methodist Church v Korean Methodist Church, 2020 COA 20 (Colo. App. 2020), the trial court held that church governing documents did not recite any submission to the denomination. The denomination urged that it was the intent of the church to submit to the denominational authority. The denomination produced the testimony of a founding board member and a record of financial payments over many years. The church characterized the nominal payments as donations and submitted the testimony of the founding pastor alleging there was no intent to submit. The trial court was affirmed.

Denominational authorities should not assume that churches are member congregations. The governing documents of the church either recite submission of the church to the denomination or do not. Churches that do not wish to submit should document that denominational interactions are not submissions to denominational authority. Financial gifts should likewise be carefully labeled as donations and not payment of dues or other indicia of membership.

REMOVAL OF A CHURCH OFFICER

Churches can develop management conflicts that require to restore peace the removal of a church officer. If a church is incorporated, it may have several officers. In some states, a non-profit corporation must have trustees in addition to other officers, although trustees may also hold some other office, too. A church association may also adopt a constitution and bylaws that, like other corporate governance documents, create offices with specific duties. Most church governance documents, regardless of type or source, provide for removal of a church officer.

In Islamic Center of Passaic, Inc. v Salahuddin, the founding Imam died. His widow was the church financial director. She may have been under the mistaken impression that the founding Imam owned the church property, including its financial accounts, which she had faithfully managed and accounted for during many years, and that she inherited his ownership interest. However, the belief was mistaken. Further, two years after the founding Imam passed, the church adopted a constitution and the widow signed. A new Imam was engaged by the church and no conflict arose for a period of time. However, a successor Imam was engaged and a conflict arose between the widow and the new Imam. The widow refused to allow the new Imam to become a signatory on church accounts. After the accounts were frozen the widow opened a new account to which only she had access and continued to collect the lease payments due to the church from its tenant. There was no suggestion of defalcation. The widow twice changed the locks on the church to lock out the new Imam and prevented daily worship services. Police intervention was required. The church filed a lawsuit against the widow seeking a declaration that the church terminated the widow as financial director in compliance with the church governance documents among which was the constitution the widow signed. Applying neutral principles of law after a three day bench trial the trial court confirmed the termination. The appellate court affirmed.

Failure to have a written succession plan that included disposition of the widow’s interests set the stage for conflict resulting in an expensive resolution. Indeed, the opinion indicated the church may have spent money on a mediator, too. A three day bench trial and the attendant legal fees for preparation was no doubt a memorable expense. The church did, however, adopt a constitution after the founding Imam passed away. That governance document, and possibly others, permitted a court to resolve the dispute. Governance documents are usually amenable to Neutral Principles of Law interpretation and enforcement.