Friday, June 26, 2026

Suit Charging Misrepresentation of Use of Tithed Funds Dismissed on Ecclesiastical Abstention Grounds

In Leach v. Gateway Church, (ED TX, June 23, 2026), a Texas federal district court dismissed on ecclesiastical abstention grounds a class action suit brought by donors to the church who claim that the church misrepresented the charities to which tithed funds would be distributed. The court said in part:

Plaintiffs allege that Defendants represented or promised that “15% of all tithe dollars would be distributed to global missions and Jewish ministry partners,” inducing Plaintiffs to give generously toward these ends.... Plaintiffs contend that Defendants made these representations through various mediums, including during sermons, in the “Members’ Handbook,” at conferences, and on Gateway’s website..... Plaintiffs assert that Defendants did not allocate these funds as they represented that they would.... Plaintiffs argue that Defendants’ reallocation of their tithe dollars from “global missions” and “Jewish ministries” to “secret organizations” or to other “charitable purposes,” ... was an improper transfer....

The claims at issue will implicitly require the Court to determine the meaning of Plaintiff’s references to “global missions,” “Jewish ministry partners,” “local, national, and international outreach efforts,” and other terms that implicate religious beliefs.... 

... [W]hile both parties acknowledge Plaintiffs’ claims are grounded in traditional civil law, resolving the claims would require the court to examine the management of Gateway’s donated funds, which will “necessarily implicate[] questions of faith, scripture, and religious doctrine.”...

Further, resolving Plaintiffs’ claims would require the Court to “evaluat[e] the truth of [a] sermon.”... Plaintiffs specifically alleged that two senior pastors promised to give the congregation their money back if they were dissatisfied with how the church used it.... These promises were purportedly made during sermons....

... [T]his analysis may have been different if Plaintiffs had alleged that Morris, Dulin, or any other Gateway leader reallocated their tithe dollars for personal gain....

Fort Worth Report reports on the decision.