Local Congregation Cannot Sue Parent in Property Dispute After All Its Members Were Excommunicated

Church of God of Crandon v. Church of God, (WI App., Oct. 15, 2024), involved a dispute between a local congregation-- the Crandon Church-- and its parent body, Church of God (COG). The Crandon Church opposed the parent body's decision that the local church would be merged with a congregation in a different location and the Crandon Church property would be sold. Crandon members filed suit against the parent body seeking a declaration confirming its interest in local church building and its bank accounts. In response, the COG Bishop issued a Declaration excommunicating Crandon Church members and then moved to dismiss the lawsuit against COG on the ground that Crandon no longer had any members so that it effectively has ceased to exist and has no interest in Crandon property. The appellate court agreed, saying in part:

... [T]he 1994 warranty deed states that all property—both real and personal—becomes the property of the COG should a “local congregation” “cease to … exist.”  The Crandon Church cannot file a lawsuit to obtain an interest in property that it does not own.  Because we conclude that the First Amendment prohibits our review of the Declaration, the Crandon Church lacks standing to bring the current lawsuit seeking interests in the property and the CoVantage accounts....

... [A] civil court cannot, under the First Amendment, review:  whether the 2018 Minutes [giving the Bishop the authority to excommunicate unruly or uncooperative members] complied with due process or the Bible; what the COG meant by “unruly or uncooperative”; or whether Cushman properly determined that the excommunicated members were “unruly or uncooperative.”  Similarly, the First Amendment prohibits a civil court from examining the International Executive Committee’s review of those issues.  To hold otherwise “would undermine the general rule that religious controversies are not the proper subject of civil court inquiry.” ... Under the facts of this case, we must defer to the resolution of any ecclesiastical issues by the International Executive Committee, which denied the excommunicated members’ appeal.

State RFRA Bars Taxpayer Suit Challenging Church's Property Tax Exemption

 In In re Calvary Chapel Iowa, (IA Adm. Hearings Div., Sept. 17, 2024), an Iowa Administrative Law Judge held that the state's Religious Freedom Restoration Act protects churches from taxpayer suits challenging their property tax exemptions.  The ALJ said in part:

The issue in this case is whether as a matter of statutory (not constitutional) law individuals can use the taxpayer-standing provision of Iowa Code section 427.1 to force a religious organization into litigation and spend the time and resources to prove its entitled to its property-tax exemption already claimed by it.  Prior to the enactment of the Iowa Religious Freedom Restoration Act (“RFRA”) the answer was an unequivocal yes (with individuals having done precisely this for at least a generation); however, with the passage of RFRA, the answer now appears to be no at least under the circumstances of this case. 

As discussed below, this is because this type of litigation imposes a substantial burden on the exercise of religion and because the State’s compelling interest in the appropriate administration of tax law can be met with the lesser restrictive means of having the State (with its constitutional and statutory constraints) enforce tax law.  To hold otherwise would be to allow the unaccountable political opponents of a church the option to use the power of the State to target and/or retaliate against the religious organization for the organization’s activities, thereby creating a chilling effect not only on that specific religious group but also all other similarly oriented religious organizations.  This is precisely the type of religious interference that RFRA was designed to prevent, and until the judiciary provides different guidance on the scope of RFRA, this case must be dismissed.

Christian Post reports on the decision.

Alabama Supreme Court Refuses to Order United Methodist Conference to Allow Church Disaffiliations

In Aldersgate United Methodist Church of Montgomery v. Alabama- West Florida Conference of the United Methodist Church, Inc., (AL Sup. Ct., May 31, 2024), the Alabama Supreme Court, in a per curiam opinion, applied the ecclesiastical abstention doctrine and dismissed a challenge by 44 Methodist congregations to a refusal by their parent Conference to allow the congregations to disaffiliate and retain their property. A few months before the congregations sought to disaffiliate, the Conference had changed its rules to provide that a member church could disaffiliate only after the Conference approved an eligibility statement that set out the reasons of conscience that led to the congregation's request. Prior to that, under a policy that was to expire at the end of 2023, congregations could disaffiliate and retain their property merely if they disagreed with the Chruch's policy on same-sex marriage and homosexuality. In affirming the dismissal of the case, the court said in part:

In order to grant the churches the relief they seek -- the right to vote on disaffiliation -- the trial court would have to survey the Judicial Council's ecclesiastical decisions, interpret the doctrinal scope of ¶ 2553 of the Book of Discipline, and review Conference determinations about the religious adequacy of the churches' eligibility statements.  That is, to decide any property questions, the trial court would have to adjudicate whether each of the churches had adequate "reasons of conscience...."  Resolving those issues would "inherently entail inquiry … into the substantive criteria by which [courts] are supposedly to decide the ecclesiastical question" -- whether the churches' reasons of conscience were sufficient for disaffiliation under ¶ 2553....   "But [that] is exactly the inquiry that the First Amendment prohibits."

Justice Bryan filed an opinion concurring specially which Justice Mitchell joined. Justice Cook filed an opinion concurring specially which Chief Justice Parker joined. Both opinions expressed sympathy with the churches' claim that the last-minute change in rules was engineered to prevent them from disaffiliating. Justice Mundheim filed an opinion concurring in the result, but not in the reasoning of the main opinion. Justice Sellers concurred in the result without filing a separate opinion. Justices Shaw, White and Stewart recused themselves.

Alabama Supreme Court: Ecclesiastical Abstention Doctrine Does Not Apply to Church Property Ownership Dispute

In Ex parte The Alabama-West Florida Conference of the United Methodist Church, Inc., (AL Sup. Ct., April 12, 2024), the Alabama Supreme Court held that the parent bodies of the Methodist Church in Alabama had not shown that an ownership dispute between them and a local church in Dothan, Alabama should be dismissed under the ecclesiastical abstention doctrine. The Methodist Church's Book of Discipline required church deeds to contain a clause providing the property was held in trust for the parent church. The deed to the Dothan church did not contain such a clause. Four of the Court's 9 Justices recused themselves in the case, and two lower appellate court judges were appointed to sit with the remaining 5 regular Justices to hear the case.  In the opinion for the court written by Justice Cook and concurred in by three others, the Court said in part:

First, the AWFC and the GCFA's claim that this is a church dispute over ecclesiastical, rather than property, issues is premised on the erroneous assertion that "Harvest wants the [trial] court to create a new disaffiliation process just for Harvest contrary to church law." ...

Harvest's complaint does not seek judicial review of the disaffiliation procedure set forth in the Book of Discipline or otherwise ask the trial court to judicially declare that Harvest's vote to sever its affiliation with the UMC was consistent with the Book of Discipline's requirements....

Instead, the complaint asks that the trial court (1) to recognize that Harvest "alone is the absolute, full, exclusive, fee simple owner of all real or personal property that is owned by [Harvest], held for [Harvest], or titled in its name," (2) to declare that the UMC and the AWFC do not have "any trust, equitable, or beneficial interest in any of the real or personal property so owned by [Harvest],"....

Accordingly, Harvest's claim, on the face of the complaint, pertains solely to the ownership and control of the local church property -- an issue that civil courts generally can resolve by applying "neutral principles of law." 

Chief Justice Parker filed an opinion concurring in part and concurring in the result, saying in part:

While I believe that the main opinion accurately applies our precedents on the limited issue of church-property disputes, I believe that it goes too far in announcing a grand unifying theory applicable to all church-dispute cases that will unfortunately result in a loss of religious liberty. 

Justice Sellers filed an opinion concurring in the result, saying in part:

[I]n my opinion, once Harvest used the civil legal system to file its deed and organizational documents, it consented to have secular law applied to its filings and, thus, opened the door to have any property dispute resolved pursuant to neutral principles of law.

Special Justice Edwards concurred in the result. 

Alabama Supreme Court Affirms Dismissal of Church Property Dispute

 In Sails v. Weeks, (AL Sup. Ct., April 5, 2024), the Alabama Supreme Court by a vote of 8-1, without an opinion for the majority, affirmed the dismissal of a suit challenging the use and disposal of church property. Defendants contended that plaintiffs are not members of the church and thus could not bring suit on its behalf. Justice Mendheim filed a concurring opinion, saying in part: 

[I]t is inaccurate to attribute the genesis of the ecclesiastical-abstention doctrine to the First Amendment. The delicacy with which courts approach church-dispute cases arose more organically from America's history of seeking to disentangle church denominations from state governance...

I believe that our invocation of the ecclesiastical-abstention doctrine should come from a desire to protect religious freedom rather than an unfounded fear that religious ideas might taint our civil jurisprudence....

The Sails plaintiffs argued that the heart of this dispute concerns the alleged mismanagement or misuse of church property. However, I believe that the Sails plaintiffs' property allegations are a proxy for asking the courts to decide who controls the church -- an issue our courts lack the means and expertise to decide....

... "[T]he nature of the underlying dispute" is whether the Sails plaintiffs, who stopped attending the church several years ago, are still members of the spiritual church, who are the ones that ultimately control the incorporated church and the property it holds. In short, there is no way around the fact that, in this case, a decision concerning the use of the church property implicates the spiritual church because church membership is a spiritual concern. 

Justice Sellers filed a dissenting opinion, saying in part:

Defendants ... moved to dismiss the complaint, arguing, in part, that the plaintiffs lacked standing to bring an action on behalf of Union Baptist because, they claimed, Union Baptist was no longer a recognized legal entity under Alabama law because of the official name change that occurred in 2017....

... [C]hanging the name of a corporation, amending an organizational document, or reforming a deed involves the use of our civil legal system that by its very nature is not ecclesiastical.  The issue in this case then is who has the authority to act on behalf of the organization?  And, after identifying that issue, the question then becomes whether secular courts can decide that issue or whether that decision should be left to some ecclesiastical authority?  Because we have no ecclesiastical courts with enforcement authority, I am uncertain how the issue can be decided without court intervention. 

Michigan Passes Institutional Desecration Ban

 Last week, the Michigan legislature gave final passage to HB 4476 (full text) (legislative history) which creates the crime of "institutional desecration." A person is guilty of the crime if the person:

maliciously and intentionally destroys, damages, defaces, or vandalizes, or makes a true threat to destroy, damage, deface, or vandalize ... because of the actual or perceived race, color, religion, sex, sexual orientation, gender identity or expression, physical or mental disability, age, ethnicity, or national origin of another individual or group of individuals....

any religious building, educational institution, library, museum, community center, campground, cemetery, business or charitable institution.  The bill now goes to Governor Whitmer for her signature. Michigan Radio reports on the bill's passage.

NY Court Rules That Parent Body Is Entitled to Possession of Hare Krishna Temple

Kelley v. Gupta, (Sup.Ct. Nassau Cty. NY, Oct. 25, 2023), involves a dispute between two factions of the Hare Krishna movement over control of a temple in Freeport, New York. In this decision a New York state trial court concluded that The Governing Body Commission of the International Society for Krishna Consciousness ("GBC") is the highest ecclesiastical authority in the Krishna movement, and upheld GBC's expulsion of defendant for engaging in religious practices that are contrary to the teachings of the religion. The court said in part:

GBC has established that ISKCON Global is a religion that operates under a hierarchical system, whereby local temples are subject to review and control by the GBC and its ascending order of authority.... The GBC has continued to pass laws and make rulings on various ISKCON Global issues including religious practices and the management of properties. Among these rulings were the Resolutions prohibiting ritvik theory as "a dangerous philosophical deviation," and the expulsion of those who practiced ritvikism, including the defendant and Mr. Garuda. Accordingly, complete deference must be afforded to the GBC's decision making authority in ecclesiastical matters, and any final decisions of the GBC in such matters are therefore binding on this Court....

The court concluded that trustees of ISKCON "are entitled to immediate possession of the Freeport Temple premises and property belonging to the Temple, including but not limited to deities...."

Church Autonomy Bars Court Adjudicating Dispute Over Withdrawal from Parent Body

 In Deutsche Evangelisch Lutherische Zions Gemeinde v. Evangelical Lutheran Church in America, (Kings Cty NY Sup. Ct., Aug. 16, 2023), a New York state trial court dismissed a suit brought by a German Lutheran church in Brooklyn that claims it has broken away from its parent bodies, the Evangelical Lutheran Church in America (ELCA) and ELCA's Metropolitan New York Synod over the parent bodies' stance accepting same-sex marriage and ordination of gay clergy. The parent bodies claim that the church is still affiliated with them. Plaintiff asks the court to determine that its membership with the parent bodies has been terminated and that the parent bodies lack authority to take control of church property. It also alleges in defamation claims that false statements about its affiliation injure its reputation and dissuade new members from joining. In rejecting those claims, the court said in part:

... [T]he neutral principles of law approach cannot be applied to adjudicate plaintiff's property claims which directly call into question the authority that has been vested in the synod to impose synodical administration which would allow it to dissolve the church and take control over its property....

The MNYS's power to impose synodical administration is far broader, however, than its authority to take control over a local church's property.... Plaintiff's argument ... ignores the inherent religious elements.... [T]he decision to impose synodical administration over a church involves consideration by the Synod of such issues as church governance, religious doctrine and practice, scripture, and the spiritual well-being of the local church's remaining members. Thus, it concerns subject matter with which this court is forbidden from entangling itself pursuant to the First Amendment. Indeed, synodical administration is an inherently religious matter although it incidentally concerns a local church's property.....

In order to resolve the dispute of whether plaintiff terminated its membership with defendants, this court would necessarily intrude into areas of church polity, religious doctrine, practice, and scripture in order to force the Synod to accept the votes taken by plaintiff's congregation in 2008 and 2009 to terminate the relationship. Whether plaintiff remains a member church of the ELCA and the MNYS is more than just a mere associational question but a religious one.

8th Circuit Upholds Constitutionality of Federal Ban on Damaging Religious Real Property

In United States v. Hari, (8th Cir., May 10, 2023), the U.S. 8th Circuit Court of Appeals upheld the constitutionality under the Commerce Clause of 18 USC §247.  The statute bars damaging religious real property because of the religious character of the property, and bars obstructing a person's enjoyment of free exercise of religion by force or threat of force against them or against religious real property, when the person's conduct affects interstate commerce. The court said in part:

Here, the statute specifically requires that the offense “affects interstate or foreign commerce.” This “ensures, through a case-by-case inquiry, that each defendant’s [offense] affected interstate commerce.”

The court also upheld defendant's conviction under 18 USC § 924(c)(1) for carrying or using a destructive device during and in relation to any crime of violence.  The conduct for which defendant was convicted was described by the court:

In August 2017, Emily Hari loaded a pickup truck with a 20 pound pipe bomb, two assault rifles, and a sledgehammer and drove with two confederates from Illinois to the Dar al-Farooq Islamic Center in Bloomington, Minnesota. The trio smashed a window of the Imam’s office before the parishioners’ dawn prayer and threw gasoline, diesel fuel, and the pipe bomb inside. The bomb detonated. No one was injured; the building suffered fire and smoke damage. Hari and the others fled.

Suit By Florida Breakaway Methodist Churches Is Dismissed

In Grace United Methodist Church Inc. v. Board of Trustees of FL Annual Conf of UMC Inc., (FL Cir. Ct., April 18, 2023). a Florida state trial court dismissed a suit by 71 Methodist congregations throughout Florida which seek to break away from their parent body because of their objections to United Methodist Church allowing bishops and clergy to officiate at same-sex weddings and to be openly gay. The congregations want to reaffiliate with the more conservative Global Methodist Church. Current UMC rules impose substantial financial costs on congregations seeking to disaffiliate. The court concluded that, under Florida precedent, it must defer to decisions of church hierarchical bodies. It also concluded that actions to determine title to property must be brought in local courts covering the jurisdiction in which the property is located. The court added:

[C]onsidering the recent clarifications from the Supreme Court of the United States on matters of discrimination and unequal treatment based on religious status, along with the abrogation of Lemon v. Kurtzman ... it seems to the Court that merely deferring to the UMC on all matters and denying the Plaintiffs access to the courts to litigate neutral property and trust matters does not meet the strictest scrutiny. Nevertheless, the Court is bound to follow the law as established by the higher courts in the State of Florida.

UM News reports on the decision.

185 Methodist Churches in Georgia Sue Parent Body Seeking Disaffiliation

 At the end of last month, 185 Methodist congregations in Georgia filed suit in a Georgia state trial court against their parent body and its officials.  The congregations are attempting to disaffiliate from the North Georgia Conference of the United Methodist Church pursuant to a provision (❡2553) added to the Church's Book of Discipline in 2019.  The provision, which applies to disaffiliations completed by the end of 2023, allows disaffiliating congregations to keep their real and personal property.  The complaint (full text) in Carrollton First United Methodist Church, Inc. v. Trustees of the North Georgia Conference of the United Methodist Church, Inc., (GA Superior Ct., filed 3/30/2023), alleges in part that: 

Defendants have conspired to "run out the clock" on Plaintiffs ability to utilize ❡2553 by a combination of ultra vires actions, fraudulent misrepresentations, and promises which they have failed to keep so that, unless this court intervenes, Plaintiffs cannot and indeed will not be allowed to fulfill the legislated requirements of ❡2553 in time to meet the sunset date of 12/31/23.

The complaint also alleges that the parent body is no longer allowing disaffiliating churches a credit for their share of a $23 million pension plan reserve fund.

In introductory paragraphs, the complaint contends:

This case can be resolved in accordance with secular Georgia law ... without interfering with the separation of church and state.... Defendants cannot be heard to contest this point, as Defendants have availed themselves of the same principles recently in a substantially similar context in this very court....

UM News, reporting on the lawsuit, says in part:

The lawsuit ... involves more than a quarter of the North Georgia Conference’s nearly 700 congregations. 

It’s also the most congregations that have banded together in a single lawsuit since the denomination began undergoing a slow-motion separation after decades of intensifying debate over LGBTQ inclusion.

North Carolina Methodist Churches Sue to Disaffiliate from Parent Body

Suit was filed last month in a North Carolina state trial court by 38 United Methodist Churches in North Carolina which are seeking to disaffiliate from the United Methodist Church and retain their buildings and property.  The complaint (full text) in Mount Carmel United Methodist Church v. Western North Carolina Conference of the United Methodist Church, (NC Super. Ct., filed 11/10/2022), alleges in part:

Plaintiff Churches wish to disaffiliate from the United Methodist Church ("UMC") to pursue their deeply held religious beliefs. Defendants want to force Plaintiff Churches to stay affiliated with the UMC, and violate those beliefs by holding their church buildings and property hostage. Defendants claim Plaintiffs' Churches property is encumbered by an irrevocable trust for the benefit of the UMC and the only way for Plaintiff Churches to disaffiliate without surrendering the buildings and property that are central to their congregations is by the permission of the UMC and payment of a financial ransom.

Plaintiffs ask the court to declare that the UMC trust is terminated or is revocable and to quiet title to the Churches properties. Religion News Service reports on the lawsuit, saying in part:

Legal action — or the threat of legal action — represents a new strategy on behalf of churches that want to leave the 6.4 million-member United Methodist Church. The denomination is undergoing a wholesale splinter after decades of rancorous debate over the ordination and marriage of LGBTQ members.

The denomination allows churches to leave through the end of 2023. The exit plan allows them to take their properties with them after paying two years of apportionments and pension liabilities.

Church's Attempt To Separate From Parent To Avoid Receivership Was Fraudulent

In Pentecostal Church of God v. City of Refuge Ministries Toledo Ohio, (OH Com. Pl., Aug. 15, 2022), an Ohio state trial court held that the transfer of a Toledo, Ohio church building by a quitclaim deed to City of Refuge, a separate non-profit entity, was fraudulent.  The court concluded that Toledo congregation was a satellite church of Detroit Pentecostal Church of God, and the members signing the deed had no authority to transfer the property. The transfer was made in order to attempt to separate the Toledo congregation from the receivership imposed on the Detroit congregation. The court said in part:

Here, the dispute is over a quit-claim deed that transferred property held by PCG to City of Refuge in 2018. Deciding if that deed was fraudulently transferred from PCG to City of Refuge will not invade upon protected ecclesiastical matters.....

[T]his Court finds that the deed executed in 2018, conveying the contested property from PCG to City of Refuge Ministries Toledo, Ohio as void, ab initio. Further, the title to said property is vested to PCG alone and the defendant, City of Refuge does not have any estate, right, title, or interest in the property.

Disaffiliated Congregation Not Entitled To Church Property

In Hebron Community Methodist Church v. Wisconsin Conference Board of Trustees of the United Methodist Church, Inc., (WD WI, July 25, 2022), a Wisconsin federal district court rejected a claim by a local congregation that it retained title to the church's real property after it disaffiliated from its parent organization.  The local congregation asked for a declaration that a Wisconsin statute specifically governing property of disaffiliated Methodist congregations is unconstitutional.  The statute provides:

Whenever any local Methodist church or society shall become defunct or be dissolved the rights, privileges and title to the property thereof, both real and personal, shall vest in the annual conference and be administered according to the rules and discipline of said church.

The court however held that it need not reach the constitutional question, because the local congregation "has not pleaded facts sufficient to show that any neutral principle of law would allow Hebron to retain its property after disaffiliation." Wisconsin law directs courts to look to the Church's governing documents. The congregation had adopted the Book of Discipline as its governing document.  The Book of Discipline provides in part:

All properties of United Methodist local churches and other United Methodist agencies and institutions are held, in trust, for the benefit of the entire denomination....

Courthouse News Service reports on the decision.

Break-Away Faction In Church of God Not Entitled To Property Ownership

In Blue v. Church of God Sanctified, Inc., (TN App., June 27, 2022), a Tennessee state appellate court held that in a property dispute between a break-away faction of a local Church of God and the National Body (as well as a faction loyal to the National Body, labeled the Mother Church), the National Body and its local adherents own church property.  The court said in part:

 We agree with the trial court’s determination that as a matter of ecclesiastical government, the procedure for separation of an affiliated member church from a hierarchical church organization is an issue over which civil courts do not have subject matter jurisdiction.... The trial court did not err in declining to exercise subject matter jurisdiction over Local Church’s initial request for a judgment declaring it to be a separate entity from the National Body....

The court went on to apply the "hybrid neutral principles" approach to affirm the trial court's conclusion that the local church property belongs to the National Body. It described the "hybrid neutral principles" approach:

 “[u]nder this approach, courts defer to and enforce trust language contained in the constitutions and governing documents of hierarchical religious organizations, even if this language of trust is not included in a civil legal document and does not satisfy the formalities that the civil law normally requires to create a trust.”

The court concluded:

 Although no ecclesiastical judgment is in the record, we conclude that the evidence presented at the summary judgment stage demonstrates that the National Body considered Mother Church to be the congregation entitled to possession and use of the Property.... Moreover, as the trial court found, Local Church had already sought disaffiliation from the National Body and had “appointed [its] own pastor, deacons, and trustees outside of the requirements of the [Manual].” We therefore defer to the National Body’s determination, acting through Bishop Hill, that Mother Church is the congregation entitled to possession and use of the Property and its associated personalty.

Kentucky Governor Signs Bill Protecting Houses Of Worship During Emergencies

Yesterday, Kentucky Governor Andy Beshear signed into law House Bill 43 (full text) that prohibits the governor, during a state of emergency, from seizing or condemning "houses of worship, except to the extent that such houses have become unsafe to a degree that would justify condemnation in the absence of a state of emergency." ADF issued a press release announcing the governor's action.

Ecclesiastical Abstention Doctrine Bars Adjudication Of Some Claims In Dispute Between Church Factions

In In re Thomas, (TX App., Jan.14, 2022), Jan. 14, 2022), a Texas state appellate court ruled on the extent to which the ecclesiastical abstention doctrine bars various claims in a dispute between two factions in a Baptist church over who should be its pastor and which faction controls its large bank account. The court held that the ecclesiastical abstention doctrine bars civil courts from ruling on the deacons' authority to terminate the church's pastor and on whether one group is obligated to relinquish control over the church's financial records and bank account. However, the ecclesiastical abstention doctrine did not necessarily bar adjudication of claims for breach of fiduciary duty, conversion of church funds and access to the church's books, records and bank statements.

Church's Suit Against Bank Dismissed On Ecclesiastical Abstention Grounds

In Eglise Baptiste Bethanie De Ft. Lauderdale, Inc. v. Bank of America, N.A., (FL App., May 26, 2021), a Florida state appellate court, in a 2-1 decision, affirmed the dismissal of a suit by a Baptist church against a bank for negligently transferring control of the church's bank accounts to the widow of the deceased pastor. The court said in part:

Here, although the Church’s negligence claims against the Banks involve a question of control over bank accounts, in order to resolve those claims the court would necessarily have to decide which faction within the Church controls the bank accounts. The only way for the court to make this determination is for it to consider the Church’s internal governance structure. “[Q]uestions of church governance are manifestly ecclesiastical.” Id. Accordingly, the trial court did not err in dismissing the case for lack of subject matter jurisdiction based on the ecclesiastical abstention doctrine.

Judge Winter dissented, saying in part:

Appellants argued that the case could be decided on neutral legal principles, and to determine otherwise goes beyond the four corners of the complaint. At best, therefore, dismissal was premature. The ecclesiastical abstention doctrine applies to church property disputes in hierarchical religious organizations. A different rule applies to churches which are congregational organizations. Based upon the correct rule, dismissal was error.

Court Continues 30-Year Old Church Factional Dispute

In Trustees of the General Assembly of the Lord Jesus Christ of the Apostolic Faith, Inc. v. Patterson, (ED PA, March 19, 2021), a Pennsylvania federal district court, in an 85-page opinion, granted a preliminary injunction to prevent the county sheriff from carrying out a Writ of Possession and Eviction Notice against plaintiff Church and Church Corporation which holds title to Church property. As explained by the court:

The instant action is one in a long line of other cases ... over the past three decades, in state court and federal court alike. The heart of each case is the same, though the procedural postures may differ. They all seek to resolve, once and for all, a question that has been posed since 1991, after the death of the late Bishop McDowell Shelton and the subsequent schism in the Church: Who gets to control the Church and Church Corporation and their assets?

The Writ of Possession at issue grew out of a 2006 Arbitration Award which was upheld in 2017. The court concluded, however, that the case giving rise to the arbitration award was between individual leaders of the two factions seeking control. Since the Church and the Church Corporation were not parties to that action, it was not binding on them. Thus a judgment is being enforced against them when they never had the opportunity to litigate the matter.

Church's Appeal of Bank's Interpleader Is Dismissed

United Community Bank v. Wakefield Missionary Baptist Church,  (NC App., March 16, 2021), involves a dispute over who is entitled to bank accounts of Wakefield Missionary Baptist Church on deposit at United Community Bank. The Bank filed an interpleader action. The church trustees sought dismissal on the ground that the dispute was an ecclesiastical matter requiring determination of who is a church member, and their roles and authority. As recounted by the appeals court:

The trial court granted the Bank’s motion for interpleader and discharge, ordering the Bank to relinquish all of the disputed funds to the Clerk of Superior Court to be held until further orders. The Bank complied.

The court dismissed the appeal as interlocutory, saying in part:

The interlocutory order granting interpleader does not impair the Trustee Defendants’ ... rights because the issue of who has control over the Church’s assets with the Bank is the very thing yet to be decided at the trial court.... The proceeding does not interfere with the Trustee Defendants’ substantial right to be free from ecclesiastical entanglement because the trial court can resolve the controversy based on neutral principles of law.