Pastor's Breach of Contract Suit Dismissed on Ecclesiastical Abstention Grounds

In Craver v. Faith Lutheran Church, (TX App., Nov. 8, 2023), a Texas state appeals court held that the ecclesiastical abstention doctrine requires dismissal of a pastor's suit for breach of contract and fraudulent inducement brought against the church that was his former employer. After the church's executive board received complaints against the pastor, the church entered a severance agreement with the pastor. The pastor contends that the agreement included an assurance that the allegations against him would not be spread throughout the congregation. The court said in part:

Craver argues his case presents a “run-of-the mill” civil dispute, which can be resolved by application of neutral principles of law and without reference to religious matters. He contends: “While Faith Lutheran’s decision to terminate [him] is generally unreviewable, [his] claims have nothing to do with that and are instead about Faith Lutheran’s obligations under a secular, civil contract not to make certain statements.”

We disagree that church matters can be so cleanly and completely severed. Instead, the substance and nature of Craver’s fraudulent inducement and breach of contract claims are “inextricably intertwined” with matters of Faith Lutheran’s church governance.... [B]oth claims rely on circumstances surrounding contract formation and it is those circumstances which implicate the ecclesiastical abstention doctrine...

[W]e cannot untwine recommendations Church executives made in the course of church governance from the allegedly fraudulent representations that form the basis of Craver’s lawsuit.

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.

Synod May Take Over Property of Defunct Church

In Central/Southern Illinois Synod of the Evangelical Lutheran Church in America v. Trinity Lutheran Church of Kankakee, (IL App., March 2, 2021), an Illinois state appellate court held that the parent Synod was entitled to take over the property of a local church whose membership had diminished to the point that it was no longer holding worship services or exercising governance functions. Both the constitution of the Synod and of the congregation provided that the Synod should take over the congregation's property in such cases. However one of the remaining church members changed the locks and prevented the Synod from entering. The court said in part:

Pursuant to both constitutions, the Synod Council determined that Trinity Lutheran was no longer viable and, thus, ceased to exist. Such a decision was within the province of the Synod Council and is an ecclesiastical matter involving church doctrine, polity, and practice. Therefore, we will defer to such a finding.

Church of Norway Formally Separated From the State Today

As reported by Sputnik News, today the Church of Norway, a Lutheran institution, officially became a separate entity after 500 years as an arm of the state. The movement toward disestablishing the Church was begun by Parliament in 2008. (See prior posting.) As of today, 1,250 priests and bishops will no longer be government officials. However, ties between the state and church remain. Norway's Constitution was amended to implement today's change.  While Article 2 now reads: "Our values will remain our Christian and humanistic heritage," Article 16 provides:

The Norwegian church, an Evangelical-Lutheran church, shall remain the Norwegian National Church and will as such be supported by the State.

However prior provisions making the Evangelical-Lutheran Church the "official religion" of the nation and placing the king in charge of religious matters were eliminated.

Lutheran Affiliated Senior Housing Not Entitled To Property Tax Exemption

In Meridian Village Association v. Hamer, (IL App., March 28, 2014), an Illinois appeals court upheld the Illinois Department of Revenue's denial of a property tax exemption to a senior housing facility that was affiliate with Lutheran Senior Services.  It found that appellants had not shown their property is used exclusively for charitable purposes, nor is it used exclusively for religious purposes:

While the retirement community allows members of the Lutheran Church an opportunity to act out and evangelize their religion in the context of caring for seniors, the operation of the facility is not necessary to promote their religion, because that can be accomplished through other means. Other than caring for the elderly in a faith-inspired manner, there was little evidence of actual religious activity on the property.

Montana Supreme Court Rules On Lutheran Church Property Dispute

In New Hope Lutheran Ministry v. Faith Lutheran Church of Great Falls, Inc., (MT Sup. Ct., March  12, 2014), the Montana Supreme Court held that members of a Lutheran congregation-- Faith Lutheran Church-- that voted to break away from the Evangelical Lutheran Church in America over ELCA's policy of ordaining gays and lesbians are not entitled to the church's property. The break-away members voted to affiliate instead with Lutheran Congregations in Mission for Christ. Under Faith Lutheran's constitution, while a 2/3 vote would authorize disaffiliation, a 90% vote was needed before title to the church's property would go to the break-away congregation. Only 71% of members voted to disaffiliate. The court said:

we conclude that a dispute over church documents susceptible to application of neutral principles may ... be resolved by a court using the neutral approach. The challenge raised here by Faith Lutheran to the validity of the 1993 constitution does not require us to delve into doctrinal matters, and only separate, secular language is used. Resolution is possible under application of neutral principles of contract, trust, and corporate law. Thus, no First Amendment concern is raised that would prohibit a court’s exercise of jurisdiction over the dispute.....

Finding that the church's 1993 constitution was valid, the court held that the congregation's property belongs to New Hope Lutheran Ministry-- the group that remains loyal to ELCA. However the court concluded that funds held by a Foundation that was created to support Faith Lutheran Church belong to the break-away congregation. The Montana Supreme Court also published a Synopsis of the Case.  Great Falls Tribune reports on the decision.