In Zaks v. Mosdos Chofetz Chaim Inc., (SD NY, Dec. 7, 2021), a New York federal district court affirmed a bankruptcy court's decision in a dispute between two rabbis, who are brothers, over the transfer of real property in Spring Valley, New York under the Plan of Reorganization of Mosdos Chofetz Chaim. Among other things, the court rejected appellant's argument that by applying the "common corporate structure" test, the Bankruptcy Court violated the First Amendment right of Mosdos to have its ecclesiastical leadership control all facets of its governance in compliance with its religious obligations.
