Several church property cases ripen across the country
The Layman, October 11, 2012
As congregations historically affiliated with the Presbyterian Church USA and the Episcopal Church USA seek to realign with more conservative branches of their denominational families, court battles over property continue across the country. At issue is often not the question of “ownership,” because in many cases the deeds are clearly in the name of the local church. What the denominations assert is a “trust” over the property which they assert has only been held by the local church for the larger body.
Texas
On Oct. 16, 2012 the Texas Supreme Court will hear oral arguments for both the Salazar and Masterson cases. Both cases involve Episcopal churches. The Salazar case involves the Episcopal Diocese of Ft. Worth which is seeking to realign en masse with the Anglican communion. The Masterson case involves Good Shepherd Episcopal Church of San Angelo which is also seeking to leave the ECUSA for a more conservative Anglican expression of the faith. At issue is the practice of Texas courts called “hierarchical deference.” In both cases the appeal is for the application of neutral principles of law which would favor those trying to retain the use of properties which they legally own, maintain, insure and use. The Presbyterian Lay Committee filed an amicus brief in the Masterson case, on behalf of the congregation.
North Carolina
In September 2008, the Presbytery of Western North Carolina filed suit against the Montreat Presbyterian Church (EPC). The case will go to trial on October 15, 2012.
The Montreat PC property is situated in the PCUSA’s flagship national retreat center which bears the same name. Montreat left the PCUSA to affiliate with the Evangelical Presbyterian Church (EPC) in 2007.
Although the church has moved on in ministry and mission, it has done so under the continuing weight of a lengthy legal battle with the presbytery.
Rulings in the Texas and North Carolina cases will be reported at www.layman.org when issued by the respective courts.
Other decisions in Presbyterian cases
Indiana Supreme Court: Presbytery of Ohio Valley v. Olivet Presbyterian Church – In a ruling issued on July 31, the court rejected the “hierarchical deference rule” in favor of the neutral-principles approach. After applying those principles, examining the relevant documents and considering Jones v. Wolfe, the court found that a trust had never been expressly created under Indiana law. The presbytery has appealed.
Missouri Court of Appeals for the Western District: Heartland presbytery v. Gashland Presbyterian Church and Colonial Presbyterian Church v. Heartland presbytery – In both cases the presbytery was unsuccessful in convincing the court that local churches held property in trust for the denomination. In a June 26 ruling, the court applied neutral-principles of law and concluded that despite the denomination’s insistence to the contrary, no trust was established under Missouri law.
The Texas First Court of Appeals came to a diametrically opposite opinion in the case of Windwood Presbyterian Church v. Presbyterian Church USA. In an Aug. 30 ruling the court affirmed a summary judgment on behalf of the PCUSA that Windwood held its property in trust for the national church. The court reached this opinion under both the deference approach and the neutral-principles approach as the state has yet to clarify which approach represents Texas law. That is the issue now before the Texas Supreme Court in the two Episcopal cases at the lead of this article.
In Louisiana, the U.S. Supreme Court has turned thumbs down on a South Louisiana Presbytery petition for a writ of certiorari, effectively demolishing the Presbyterian Church (USA)’s attempt to unilaterally impose a trust on one of its Louisiana congregations. With the denial, the Louisiana First Circuit Court of Appeal’s decision affirming the trial judge’s grant of summary judgment in favor of the 20-member Carrollton Presbyterian Church in New Orleans has become final.
The Layman maintains a legal database of church property related cases. If you have more information about cases pending, please notify us at laymanletters@layman.org.