Category: Uncategorized

TEXAS CHURCH SPLITS

A friend once reminded me that everything is bigger in Texas.  That appears to apply to church splits, too.  In Mouton v Christian Faith Missionary Baptist Church, Slip. Op. (Tex. Civ. App.-1st Dist., 2016), the Pastor died and a pulpit committee was selected to nominate a successor for a congregational vote to approve or reject.  The pulpit committee nominated the deceased Pastor’s son as the successor Pastor.  However, certain other church officers objected.  They filed the first lawsuit to enjoin the congregational vote on the nomination in 2012.  The trial court dismissed the case.

A congregational meeting was convened and the pulpit committee members and the son of the deceased Pastor were expelled from the church and a new Pastor was elected a month later, seemingly after a nomination by a new pulpit committee and in a second congregational meeting.  The expelled pulpit committee decided to change the signature cards on the church bank accounts to obtain control of the accounts.  But, the current signatory on the accounts would not confirm their authorization to do so.  The bank filed an interpleader action, i.e., the second lawsuit.  The bank account balances were ordered paid into the registry of the court and the trial court dismissed the claims of both groups, the prior pulpit committee and the newer pulpit committee.  The prior pulpit committee also tried to replace church officers by filing a certificate with the secretary of state of Texas.  But, prior such filings had been approved by the Pastor and because there was not one at the time of the filing, the court disregarded it.  The trial court decision was affirmed by the appellate in the first appeal in 2014.

The parties returned to the trial court, without the bank this time, and resumed their cross claims against one another.  The trial court dismissed all claims for lack of jurisdiction under the ecclesiastical abstention doctrine.  The appellate court again affirmed the trial court.  The appellate court held that merely because the bylaws of the church mandated a pastoral selection process did not did not make the claims of the parties “categorically reviewable by a civil court.”  In other words, the courts of Texas would not select a Pastor and would not decide who was expelled from membership.  Clearly, there had been a congregational vote and as far as the Court seemed concerned, that was the end of it.  That the congregation may or may not have perfectly followed its bylaws by ousting one pulpit committee in favor of another was within the congregation’s prerogatives.  Thus, the new Pastor remained in place and the members on the first pulpit committee remained expelled, and this group recovered the bank account balances from the court registry in the fullness of time.

The flaw in the bylaws that might have contributed to this problem was that the bylaws (as quoted by the court) did not with great clarity specify how a pulpit committee would be selected.  The reality, too, was that the congregation could vote one way and be reconvened to vote another way even a short time later.  One possible consideration is that a church that has lost a Pastor to death, retirement or attrition of any kind may want to consider engaging temporary pastors for as much as a year not only so that a careful pulpit committee search can be conducted, but to allow the congregation to adjust to the idea of a new pastor.

WHO ARE YOUR MEMBERS?

“WELL DOC, IT ALL STARTED WITH A CHURCH BOARD MEETING.”  In secular law briefings I have given before denominational gatherings and conferences for church leaders over the years the first line in all capital letters of this entry is often my opening line.  Most church splits, employment issues, and battles over a Pastor start at the church board meeting.  In the case under discussion, the church board in a congregational church (a church with only local control and no denominational control, other ties notwithstanding) decided not to call a congregational vote when requested to do so by members.  It seemed that the bylaws of the church required a congregational vote when called for by a member or a group of members.  In this case, Hawkins v St. John Missionary Baptist Church, Slip. Op. (Cal. Civ. App. 2017), the vote demanded was a congregational vote to keep or remove the Pastor.

The member or group of members not given a congregational vote sued to enforce the bylaws.  The trial court held that enforcing the bylaws was not ecclesiastical and therefore not shielded from court review.  The trial court appointed a referee to conduct a congregational meeting and the vote.  The first problem the referee had to solve was to identify the members.  After that determination, then it had to be determined whether each member was an eligible voter.  The church (acting through the board) developed a membership list for the referee but omitted three members by mistake.  But, the referee would not allow the error to be corrected.  The three omitted members’ votes were sealed in an envelope by the referee.  The referee, the church board, the group challenging the Pastor, and the trial court did not know how the three voted.  (However, it seems likely that both sides knew the three members well enough to forecast their votes.  The board was seeking the counting of the three votes and the challengers were seeking to enforce the referee’s ruling excluding them.)  Without counting the votes of the three disqualified members, the referee held that the votes cast were 264 votes to retain the Pastor and 265 votes to terminate him.  The trial court accepted the referee’s ruling.

The appellate court reversed the trial court decision, and thus the referee’s, and ordered the three votes counted.  (This seems to have put the board and the Pastor on top.)  The court held that the grounds for rejecting the correction of the membership list, Robert’s Rules of Order, did not apply because the votes’ impact on the plebiscite were unknown and Robert’s Rules only prohibited such a change if the impact on the final tally was known in advance.  The court did not reach the question about a fourth voter:  a woman that was an ineligible minor when the list was created by the church board but was eighteen at the time of the vote and eligible.  She had been deemed ineligible by the referee.  Because her vote would not change the outcome either way, the court did not reach it.

Implicit in the rulings of the trial court and the appellate court was an unspoken criticism of the church board for not calling the requested meeting as required by the bylaws.  Also, the appellate court asked the church to amend its bylaws to avoid future problems by specifying what was meant in the bylaws by “good standing.”  In addition to the four members discussed above, seven additional members were deemed ineligible to vote on “good standing” grounds.  The referee would have benefited from an up to date membership list that had been carefully checked.  It is unlikely the referee knew, but the court might have, just how difficult up to date membership records are for churches to maintain.  For example, if the bylaws state the person is not eligible to vote if they have not attended in a year, what is the record that provides the date of last attendance?  If the bylaws put the power to unilaterally make an eligibility determination in the church board, is there a limit on when the board can change the determination?  Of course, bylaws are not needed until they are needed, so there is tendency not to review them periodically.  Annual review seems to make the most sense.

PROPHECY BY CONTRACT

It is a little known fact that contracts without temporal limitations will often not fit the situation after the passage of time.  A church that enters into a contract to avoid a legal dispute but does not limit the scope of the contract may have to buy out the contract to meet a future need.  If buying it is problematic or too costly, then the church may be stuck with keeping its word for what might seem like eternity while the circumstances change.

In Abel v Pawleys Island Community Church, Slip Op. (SC App. 2017), the church in 2000 filed an application for a permit to fill in wetlands during the construction of a new sanctuary.  The application was challenged and the church, probably to break the log jam, agreed to a settlement agreement, i.e., a contract.  From the settlement agreement a consent decree agreed to by the parties was issued, which stated:  “The Church agrees that the wetland preserved by this Consent Order shall remain in its natural state.”  In 2014, the church sought to modify the consent decree, the original challengers objected and accused the church of welching on the 2000 deal.

The appellate court enforced the settlement agreement, and thus the original consent decree, and noted “[w]e find the explanatory opening paragraph to the consent order does not create a temporal restriction on the nine clauses contained therein.”

While it was expedient to make a deal in 2000 so that construction of the sanctuary could proceed, and possibly it was not then predictable that someday might bring a need to change the deal, nevertheless someday inexorably came along with a need to modify the consent decree.  It is possible the settlement could not have been reached with a temporal limitation imposed.  It is likely that the push to complete the sanctuary on time and on budget caused undue haste.  Regardless, churches must take contracts seriously before too easily agreeing.

ARE PASTOR EMPLOYMENT CONTRACTS REAL?

While a court will typically refuse to reinstate a defrocked or fired pastor under the Ecclesiastical Abstention Doctrine or the “ministerial exception,” in most states a purely contract based dispute will be heard under neutral contract principles.  In most states, the contract will be enforced as written or legal defenses to contracts will be considered.

In Bigelow v Sassafras Grove Baptist Church, Slip Op. (NC App. 2016), the Pastor and the church entered into an employment contract that contained a disability provision.  In case it is not obvious, the contract did not require that the Pastor remain at his post to receive the disability benefits.  The disability benefit provided by the contract was that the church would pay salary and medical benefits if the Pastor became disabled during the twelve year term of the contract, which might turn out to be several years in this particular case if the contract was enforced.

The trial court dismissed the case under the aforementioned 1st Amendment doctrines.  The appellate court reversed the dismissal and sent the case back to the trial court for further proceedings, which would probably include discovery and trial until verdict or settlement.  The reversal was based on a thorough review of the Ecclesiastical Abstention Doctrine and the “ministerial exception,” and the conclusion that neutral contract law principles governed the dispute.

The contract was, in part, quoted in the court opinion.  The contract was clearly not drafted by a lawyer.  Drafting errors may have resulted in confusion about the terms agreed upon or the full extent of the promises exchanged, especially duration of the promises.  Further, the disability insurance policy in effect at the inception of the contract was no longer in force and it seems likely the church did not anticipate that the loss of that coverage might or might not expand the financial commitment.  The portion of the contract quoted did not specify which party had the obligation to keep the disability coverage in force.  If that was the Pastor’s duty, then the church might have a setoff to assert.

Employment contracts are generally enforceable between Pastors and churches as to financial terms, but not as to actual employment.  If the church removes the Pastor from that position, no court will intervene, even if the financial aspects of the contract are still enforceable.