Free Exercise Claim In Tax Exemption Dispute Moves Forward

Michael v. Letchinger, 2011 U.S. Dist. LEXIS 86685 (ND IL, Aug. 5, 2011), involves zoning and tax disputes between George and Susan Michael and the village of Lake Bluff, Illinois.  The Michael's converted a portion of their expensive lake front home into what they claimed was an Armenian Orthodox Church, because Susan's health made it difficult for her to travel to an existing church in Chicago. They transferred ownership to a new religious corporation they created.  They then initially convinced the state of Illinois to grant a religious property tax exemption for their home. (See prior posting.)  The complaint alleges that village officials then began a campaign to drive the Church out of existence and reverse the tax exemption. The exemption was reversed, and the exemption denial was upheld by the Illinois courts.  This federal court lawsuit seeks $10.5 million damages for the actions of village and state officials. The court dismissed most of plaintiffs' claims, but permitted them to proceed on their claim that their free exercise rights were violated by the discriminatory enforcement of zoning and building codes against them. They claim that the enforcement was motivated by animus against the Armenian Orthodox Church.