Thursday, September 08, 2022

Ecclesiastical Abstention Doctrine Does Not Bar Suit Over Compliance With Non-Profit Corporation Law

 In Auguste v. Hyacinthe, (FL App., Sept. 7, 2022), a Florida state appellate court held that the ecclesiastical abstention doctrine does not bar the court's deciding whether defendants violated provisions of the Florida Not For Profit Corporation Act.  After the founding pastor of a Baptist church died, the congregation split into two factions.  Plaintiffs allege that after defendant was removed as a director, he continued to purport to act on behalf of the church by filing annual reports with the state, falsely listing members of his faction as officers and falsely removing others. Plaintiffs allege that he also, without proper notice, held a secret meeting with some church members and executed a false resolution claiming that other of the directors were expelled. The court said in part:

Count I alleged that Hyacinthe violated section 617.0808, Florida Statutes (2018), regarding removal of directors. Count II alleged that Tibois violated the same statute. Count III alleged that Appellees violated chapter 617 in holding secret meetings....

Appellants’ counts I-III did not raise claims that would necessarily require the trial court to decide which faction of the Church has control or seek resolution of questions regarding the Church’s governance. Instead, we conclude counts I-III raise issues of the propriety of actions of the board of trustees, board of directors, or corporate officials of a corporation under chapter 617, Florida Statutes....

Conversely, we determine that the trial court did not err in dismissing Appellants’ count IV – raising a cause of action for conversion against Appellees.... Appellants’ count IV would necessarily require the trial court to determine which faction controlled the Church....