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 1^st 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  Further, the disability insurance policy in effect at the inception of the contract was no longer in force and it seems likely the church did not anticipate that the loss of that coverage might or might not expand the financial commitment.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.

In the United States Supreme Court case, Hosanna – Tabor Evangelical Lutheran Church and School v EEOC, 565 US___, (01/11/2011), with which everyone is now trying to bring their employment relationships into alignment, the teacher in question was classified as a “minister” because of her religious licensure and her religious teaching responsibilities.  As such, employment decisions could not be reviewed by the courts without violation of the First Amendment Ecclesiastical Abstention Doctrine.  Other religious organizations have had the idea based on the case that all of their employees, regardless of expertise, are also religious operatives and so described them in employment contracts and employment policy manuals.

Will it work?

So far, it generally has.  It probably will if the job, as described in the policy manual, includes religious education or other religious duties.  In the absence of a policy manual or job description, there may be other proof of the religious entanglement of even secular positions.  If the religious organization accepts government money there may be the need to trace whether the federal programs in which the employees serves is secular, and funded by government, or secular but related to the religious objectives.  Absent a financial entanglement with government, most courts will likely allow church schools to enforce the tenants of their religious sponsors and probably most other types of organizations, too.

Another valid question would be, is it necessary?  Most courts will see the reality rather than look only to the form.  For now, until a few more court decisions come down the pipeline, the better practice is to revise employment agreements and policy manuals of church schools to make clear the religious nature of the duties of the teachers.

Another method of deflecting employment claims will be the “morality clause” inserted in employment contracts or policy manuals.  Most denominations have a central document that sets forth a clear statement of the religious morality expected or sought, too.  Evangelical churches that do not have a denominational base document usually have corporate bylaws or other constitutional documents upon which the church school or employment policy manual can be based to achieve the same result.