In Tae Hwa Yoon v New York Hahn Wolee Church, Inc., (NY App. Div., Nov. 25, 2008), a New York state appellate court reversed the dismissal of one claim in a lawsuit against a Yonkers (NY) church, its pastor and several of its trustees. Plaintiff, a member and former trustee of the church, alleged that defendants had diverted or misappropriated church funds. Invoking the New York Not-For-Profit Corporation Law, plaintiff sought to inspect the church's books and records, compel an accounting, enjoin defendants from accessing certain church funds and obtain a declaration that the election of the trustee who replaced him and the installation of a new pastor violated the church's bylaws. The trial court dismissed on the ground that the case could not be decided by the application of neutral principles of civil law.
The Appellate Division held that the claim for production of church books and records (N-PCL Sec. 621) could be decided without examining issues of religious doctrine. The Appellate Division upheld dismissal of the remainder of the claims, but on the ground that since they were asserting rights of the church, they needed to be brought as a derivative action and the special procedural requirements of such actions needed to be met. (N-PCL Sec. 623). [Thanks to J.J. Landa for the lead.]
