A reversal of Hope:
Oregon appeals court rules
against church in property dispute
Jason P. Reagan, The Layman, May 3, 2011
An Oregon church’s buoyant hopes of holding on to its property have been punctured following a decision by the state’s appeals court.
On April 27, Oregon Court of Appeals overturned a 2010 decision by Jackson County Circuit Court Judge Phil Arnold, which had granted ownership of a 52-year-old building to Hope Presbyterian Church of Rogue River.
The three-member appeals court instead granted title to the Presbyterian Church (USA), claiming that Hope “expressed the intention of the congregation and its leadership that all property held by the church is held in trust for PCUSA,” when the church amended its bylaws and included a section stating the church would be bound by the denomination’s constitution.
Despite the fact that Hope’s amended bylaws were never filed with the Oregon Secretary of State, the court ruled that the property dispute was to be governed by the PCUSA Book of Order, which, according to the ruling “declare that local churches hold property in trust for the PCUSA.”
Church leaders say there are no amended articles.
“All of our legal documents clearly state Hope Presbyterian Church incorporated as being the owners of our property was what gave us the conviction that we are the legal owners,” Hope senior pastor Brian Boisen said, adding their dispute with the presbytery is rooted in both earthly and spiritual dissent.
A theological rift
Hope’s property ordeal began in 2007 when it split with the PCUSA. Citing theological differences, specifically concerning Christology, Hope joined the Evangelical Presbyterian Church (EPC)
“In my eight years of experience within Cascades Presbytery, I challenged a number of cases where ministers were approved after presenting textbook Christological heresies,” Boisen said.
“Each step of the way I and others challenged the presbytery, but they refused to follow through and enforce the Christological standards of our confessions,” he added.
In addition, the church decided to leave the PCUSA due to what they described as the PCUSA’s circumnavigation of issues vital to Biblical truths – issues such as chastity and fidelity. Church leaders say the EPC offered a more Bible-based model of leadership and belief.
Hope organized in 1901 with 11 members and two elders. The current church building was erected in 1959. The church affiliated with the United Presbyterian Church in the United States of America (UPCUSA), which eventually united with the Presbyterian Church in the United States (PCUS) in 1983, forming the PCUSA.
In 1961, the Presbytery of Southwest Oregon (now Presbytery of the Cascades) transferred the property to Hope by warranty deed.
At issue
The case demonstrates an evolving battle between two competing legal interpretations of church property disputes – hierarchical-deference and neutral principles of law.
At the trial level, Arnold agreed with Hope’s interpretation that the dispute should be resolved under neutral principle.
Arnold explained his understanding of the principle:
“[T]his Court must look at legal documents and must disregard purely church documents such as the Constitution of the Presbyterian Church (USA), statements of ecclesiastical doctrine and church polity, and the Book of Order. That means this court’s analysis of this civil dispute about ownership of property, in this civil law court, is based entirely upon legal documents such as deeds and any trust documents that have been appropriately executed according to Oregon law.”
Hope claimed, according to the ruling, that “the PCUSA is not ‘hierarchical’ in the sense that, say, the Catholic, Episcopalian, or Methodist churches are; rather, the PCUSA is a unique organization characterized by a ‘representative form of church government.’” Hope also pointed out that the Book of Order does not use the term.
The church argued that its title was clear and that there “is no evidence that a trust was created in accordance with the requirements of Oregon trust law.”
The PCUSA argued that the court must defer to the decisions or precedents of the denomination’s highest governing body and added that doing otherwise would violate the First Amendment rights of the PCUSA—essentially arguing for use of the hierarchical-deference principle.
The appeals court sided with the PCUSA, deciding that a precedent set by the Oregon Supreme Court left the judges no choice but to interpret the case using hierarchical-deference principle. In its ruling, the judges state that no previous state higher-court decision had “suggested that a different approach is now required in order for state courts constitutionally to resolve church property disputes.”
“Under either the hierarchical-deference or the neutral-principles approach to the resolution of church property disputes, the record in this case is clear that Hope Presbyterian held its property in trust for the PCUSA,” the judges stated, adding that Arnold erred in his ruling in favor of Hope.
The next step
The court decision may not be the final step in Hope’s legal journey. Boisen said church leaders would meet with their attorney on May 3 and then with Hope’s session.
“We [need] to gather some information first,” he said.
Along the way to its arduous trek for justice, Hope has learned a few lessons, Boisen said.
“By taking a stand with genuine risks, we at Hope have been forced to clarify our commitments, prioritizing the integrity of our witness to Jesus Christ over our own convenience and security,” he said, adding one of the church’s motivations in pursuing the matter stems from a desire to help other PCUSA churches leaving the denominational fold.
“We have already seen a positive impact on a few congregations in Oregon, and we’re hoping to further assist others who are being confronted with the change of moral policies and standards within the PC(USA),” Boisen said.
Boisen says Hope’s congregation remains steadfast despite the legal setback.
“There was some initial concern; wondering if we’d find chained doors on Sunday. But after I was able to explain things to the congregation, they felt much better and were all the more committed to our stand against the failings of the PCUSA.”