Tag: South Carolina

EVAPORATION OF THE WIDOW’S MITE

Church pastors often suffer from an imposed “vow of poverty.” Congregations that are not faithful donors often remain chronic. Founding pastors often remain for their entire career at the same church never subjecting the church to the reality of the marketplace. Pastors that make the mistake of residing in a “parsonage” lose the home equity most middle-class Americans treat as a civil right. Founding pastors often fail to install retirement plans until late in their career with no way to “catch up” without offending the good folks at the federal and state taxing authorities. However, when a pastor or a conscience driven church leadership tries to address the problem with inadequate resources and inadequate professional advice one or the other, or both, enter into arrangements that are questionable. The pastor, and usually the pastor’s widow, end up without a solution, or worse, with a ruined legacy.

In Jenkins v Refuge Temple Church of God, Slip Op. (SC App. 2018), the founding pastor appointed board members, however, the bylaws required congregational election. The pastor asked the board to enter into an employment agreement with him that contained a survivorship clause whereby his widow would receive income for life. The employment agreement with the survivorship clause was not voted upon by the congregation nor even revealed to the congregation. After the pastor died, the widow was paid by the congregation for six years. Financial necessities convinced the successor pastor and church leadership to phase out the payments. They believed the widow’s payments fulfilled their obligation as set forth in church tradition for such situations and did not learn of the written contract until the litigation for breach of the contract was brought by the widow. The trial court entered judgment for the widow on a breach of contract theory, apply neutral principles of law, but the Court of Appeals reversed. The failure of the board to be properly elected was fatal to the enforceability of the contract. That the church had made monthly payments to the widow did not estop the church under the laches doctrine because the church did not know about the contract.

Other financial arrangements might have worked far better than a “secret” contract adopted by a board of dubious legal authority. A Certified Public Accountant, a financial planner, or even an insurance specialist could have suggested many options and revealed their relevant costs. The pastor and the church may have had a moral obligation to the widow. Whether either fulfilled that obligation is a moral question not within the scope of this report. During the pastor’s ministry, a retirement plan should have been in place other than the employment contract survivorship clause. Both the pastor and the church leadership should have enacted it. A life insurance employment benefit, for example, would have been the easiest solution.

PROCEDURAL LAW BARRIERS TO CHURCH LAWSUITS

There are no statistics available, and if they were asserted their reliability would be suspect, regarding whether lawsuits involving churches are terminated on procedural grounds as often, more often, or less often than lawsuits involving other private or commercial entities. For one thing, the determination as to the precise role each argument played in a disposition is sometimes determined subjectively by the reviewer of the opinion. That disclaimer aside, many lawsuits involving churches do not proceed to a decision on the merits or even to a point sufficiently definitive to be reported here. Also, many state trial courts are not fully integrated into the world wide web such that interlocutory or even final trial court decisions are rarely sufficiently visible to be reported here. That does not mean they are not important cases or decisions. If we cannot see them, however, we cannot report them. However, sometimes the trial court’s procedural rulings are appealed and become visible.

In Eaddy v Capers, Slip Op. (unpublished) (S. Car., App., 2018), the court of appeals affirmed a trial court’s summary judgment that the excommunication of the Plaintiff was outside the jurisdiction of the South Carolinian courts. The trial court held it did not have jurisdiction over church disciplinary matters under the Ecclesiastical Abstention Doctrine. The appellate court noted that Plaintiff’s new arguments on appeal had not been submitted to the trial court and ruled upon, or otherwise preserved for appellate review. The new arguments were that (1) the church leadership had not been properly elected so they did not have authority to conduct church disciplinary proceedings and (2) that the Ecclesiastical Abstention Doctrine as interpreted by South Carolina did not apply to a congregational church like the defendant. But, because the arguments were not preserved for review, they could not be considered.

Preservation of arguments for appellate review is fundamental but trial counsel sometimes believe they have when they have not. That is a cautionary thought for church lawyers, too. Before trial level proceedings close, it may be necessary to review motions and court rulings on them issued many months or even years previously rather than rely on sometimes fallible memory. Making sure court rulings from the bench have been suitably memorialized in writing in the court record can also be a challenge if some of the proceedings were oral argument.