In Christian Methodist Episcopal Church v. Montgomery, 2007 U.S. Dist. LEXIS 5133 (D SC, Jan. 18, 2007), a South Carolina federal district court dismissed a RLUIPA claim, but permitted a First Amendment claim to proceed, in a damage action brought by a church that was being asked to comply with zoning ordinances by the town of Atlantic Beach, SC. The suit alleged harassment by officials, but the church was not closed down. The court rejected plaintiffs' RLUIPA claim because the owners of of the church's building never attempted to obtain a zoning variance. It held that the Church could not prove that the Town's zoning laws substantially burden the exercise of religion by merely requiring the owners-- or the church as tenant through assignment of the owners-- to apply for a special use permit. The court also found that the Town has a compelling interest in requiring the owners of the land to be involved in the zoning application, instead of permitting the church alone as tenant to apply.
The court however permitted plaintiffs to proceed with their First Amendment claim that officials interfered with their free exercise rights by harassment such as repeatedly stopping by, inspecting and entering the church building, even during services. It held that the Town, and two officials if they acted intentionally, could be liable for damages.