In Leach v. Gateway Church, (ED TX, Sep. 17, 2025), a Texas federal district court refused to dismiss a class action suit on behalf of Gateway Church members and tithers alleging misappropriation of tithed funds. The court said in part:
Plaintiffs allege Defendants induced Plaintiffs to donate money to Gateway by falsely representing fifteen percent (15%) of all donations would be distributed to global missions and Jewish ministry partners... [and that] Defendants guaranteed Plaintiffs a refund of their donated funds if Plaintiffs were dissatisfied with Gateway’s use of such funds.... Plaintiffs’ efforts to seek transparency and substantiation for Gateway’s use of Plaintiffs’ donations or to otherwise recover any allegedly misappropriated tithe funds have not been successful....
Because Gateway’s membership exceeds 100,000 members since its founding, Plaintiffs allege the proposed class will consist of “tens of thousands of persons,” including members that do not reside in Texas....
The court held that it was not required to abstain from hearing the case on the basis of the Class Action Fairness Act which directs class actions to state courts when there is minimal diversity of citizenship between members of the class and defendant.
The court also refused to dismiss the case on ecclesiastical abstention grounds. The court said in part:
Defendants argue neutral principles of law cannot resolve Plaintiffs’ claims because “Plaintiffs’ claims necessarily touch on the religious doctrine and practice of tithing and intrude in Gateway’s internal affairs and administration”...
At this stage ... Defendants have not established the disputed financial expenditures from Plaintiffs’ tithes were approved by a committee or governing body based on Gateway’s religious doctrine.... Second, Defendants have not pointed to any church policy outlining that its contested expenditures were justified by Gateway’s religious teachings.... Third, the Parties have not alleged they have differing definitions of “Jewish ministry partners” or any other term at issue....
... Plaintiffs’ claims seemingly address Defendants’ non-religious conduct: acts of concealment; discrepancies in the reconciliation of donated funds balances; unaccounted for donations; financial irregularities; and lack of transparency or substantiations for Gateway’s use of Plaintiffs’ donations.... The Court acknowledges the act of tithing is a religious act, but Plaintiffs do not dispute their tithing; rather, Plaintiffs allege their tithes were fraudulently allocated and Defendants misrepresented critical facts to Plaintiffs before tithing....
Ministry Watch reports on the decision.
