Sunday, March 05, 2023

Fraud Claims Against Ministry May Not Proceed as Class Action

In Carrier v. Ravi Zacharias International Ministries, Inc., (ND GA, March 3, 2023), a Georgia federal district court held that claims for unjust enrichment and violation of the Georgia Fair Business Practices Act brought against a Christian apologetics ministry and the estate of its founder cannot proceed as a class action. Plaintiffs must instead proceed only in their individual capacities. The suit alleges that some of the contributions to the organization were used to facilitate or cover up the sexual misconduct by Ravi Zacharias.(See prior related posting.) The court found several reasons that a class action was not appropriate, saying in part:

[I]t is clear that the Court must require RZIM to disclose the identities of its donors in order to certify the class defined in the First Amended Complaint. The Proposed Class is defined as: “All persons in the United States who made contributions of monetary value to Ravi Zacharias and/or the Ravi Zacharias International Ministry from 2004 through February 9, 2021.”... It is impossible to certify such a class without compelling RZIM to disclose its donor lists. Compelled disclosure of RZIM’s donor lists and identification of the donors as financial supporters of a “sexual predator” would have an impermissible chilling effect upon their First Amendment rights to associate with RZIM and other likeminded religious believers....

In theory, a class could be certified that seeks an award of damages equal to all of the hundreds of millions of dollars contributed over the 16-year class period from 2004 through February 9, 2021. But the Plaintiffs admit that RZIM used the contributions of the Proposed Class to support a mission of spreading the Gospel, teaching new apologists, and trying to help people through humanitarian efforts. None of the donors were actually harmed by their contributions to RZIM, and it appears from the face of the First Amended Complaint that only a very small amount of the money contributed to RZIM was actually used to facilitate or cover up the sexual misconduct of Zacharias. Therefore, a class-wide damages award (even if possible) of all contributions would be inequitable and implausible....

While the Plaintiffs also ask the Court to enjoin the Defendants’ “unfair and/or deceptive acts or practices,” Zacharias died on May 19, 2020.... After that, RZIM commissioned an independent investigation of his misconduct and admitted wrongdoing; the results of that investigation have been well-publicized in the Christian community.... As pled, there is no further deceptive behavior by RZIM that would warrant injunctive relief.