In a 3-2 decision in
Banks v. St. Matthew Baptist Church, (SC Sup. Ct., Sept. 25, 2013), the South Carolina Supreme Court held that a defamation lawsuit by former trustees of a church against the church's pastor can proceed under the "neutral principles of law" approach without violating the First Amendment. In the case, the trustees complained that at a congregational meeting, the pastor falsely charged them with mismanagement of funds, failing to insure an apartment building purchased with church funds and placing a mortgage on church property without his knowledge.
Chief Justice Toal and Justice Kittredge dissenting argued:
the Trustees ignore the pertinent facts that the alleged defamation took place during a congregational meeting and that the allegedly defamatory statements directly concerned their continued leadership, both financial and spiritual. Thus, the dispute here involved integral components of ecclesiastical governance.
