In New Bethel Baptist Church v. Taylor, (TX App., Aug. 29, 2023), a Texas state appellate court held that the ecclesiastical abstention doctrine does not prevent civil courts from adjudicating fraud, breach of fiduciary duty and conversion claims against its former pastor who also served as the general contractor on a church construction project. Plaintiff claims that the pastor withdrew $300,000 from the church's bank account without authorization. The court concluded that the claims can be resolved using neutral principles of law. the court said in part:
... [T]he resolution of these causes of action does not depend on the interpretation of New Bethel’s bylaws and constitutions or other relevant provisions of governing documents. Indeed, this is an example of a civil law controversy in which a church official happens to be involved....
However, the court affirmed the dismissal of the suit because the attorney did not carry her burden of proof that she was authorized to represent the church. The court said in part:
... [R]egardless of how it is named or classified in the underlying suit, it is undisputed that there is only one church. Within this one church, there are two competing factions claiming control, i.e., the board of deacons and directors. With two competing factions claiming control of the church, attorney Robinson, as the challenged attorney, was either authorized to represent both entities, or she was not. In granting Taylor’s rule 12 motion to show authority, the trial court concluded that attorney Robinson failed to discharge her burden of proof to show her authority to act and nothing more.
