Petoskey News-Review reports that a settlement has been reached in a lawsuit against the Michigan village of Bay View that was established in 1875 as part of the United Methodist Church's Chautauqua movement. In 2017, a federal lawsuit was filed challenging provisions in the Bay View Association's rules that limited cottage ownership to practicing Christians, as well as the requirement that a majority of the Association board be Methodists. (See prior posting.) Later the Justice Department joined the lawsuit. In 2018, the provision limiting ownership to Christians was eliminated. (See prior posting.) However plaintiffs also objected to other provisions favoring Christians.
In the settlement reached in May, but which must still be approved by the court, Bay View Association will retain its status as a religious organization, but will need to file for its tax exempt status separately rather than through the United Methodist Church. It will end the requirement that a majority of its board be Methodists. The Association will also eliminate provisions in its bylaws that require members to "respect the principles of the United Methodist Church" and support Bay View's mission. Instead, the bylaws will be amended to read that members must "respect and preserve the history and values of the Association," which includes acting "in a manner consistent with Christian values." Finally, Bay View, through its insurers, will pay $75,000 in plaintiffs' legal fees. The Justice Department will monitor compliance with the settlement for five years.