Judge: PCUSA trust clause violates state law
Missouri court rules in favor of
Colonial Church in property dispute
By Jason P. Reagan, The Layman, June 15, 2011
One of Kansas City’s largest Presbyterian churches joined the growing ranks of departing churches that are winning property cases against the Presbyterian Church (USA).
On July 10, Judge Justine E. Del Muro ruled in favor of Colonial Presbyterian Church of Kansas City, Mo. in a decision that will allow the 1,700-member congregation to keep its property following its 2010 departure from Heartland Presbytery.
Filed in the Circuit Court of Jackson County, Mo., the summary judgment recognized Colonial as the legal owner of all church property, which is valued at just over $15 million and includes two campuses, despite Heartland’s claim that a trust existed between the church and the PCUSA.
Located near Kansas City, Colonial left the PCUSA following an overwhelming 927-27 vote in August 2010. Citing theological differences with the denomination, the congregation also approved a move to join the Evangelical Presbyterian Church (EPC).
Efforts to seek an agreeable departure agreement with Heartland led to a protracted battle that included restraining orders from both denominational and secular judicial bodies, formal complaints by other Heartland churches and a flurry of letters. One of Heartland’s letters told Colonial it had no right to leave the denomination. Ultimately, Colonial filed a lawsuit against the presbytery and Heartland filed counterclaims against Colonial.
‘No such trust’
Del Muro’s decision proved to be a resounding validation of neutral principles of church-property law – a validation which may prove helpful to other churches facing similar disputes across the U.S. as many state courts affirm state law rather than denominational edicts to decide property cases.
“Missouri courts, when resolving issues of church property disputes, must apply the neutral principles approach by relying on objective concepts of trust and property and scrutinizing any documents in purely secular terms,” Del Muro stated in her decision.
Heartland claimed that Colonial’s property was held in an express trust for the denomination, citing the PCUSA Book of Order. The presbytery anchored its case on a clause which states, “all property held by or for a particular church … is held in trust … for the use and benefit of the PCUSA.”
The judge rejected Heartland’s argument, stating the property had been titled to Colonial and that the church was not financially indebted to Heartland in connection with the property.
The language “for the use and benefit” confers only a right to use the property, not ownership, Del Muro said. She added, the Book of Order was created by the PCUSA, not Colonial and that the church had never signed its property over to the denomination.
Since Colonial never expressly declared that a trust existed between the congregation and the PCUSA, the judge added, “[Colonial] did not breach either an express or implied trust because no such trust had been created…no express trust exists.”
Missouri law requires that the subject matter of property in question be defined in order for a trust to be created – Del Muro found the PCUSA trust clause did not specifically define the property.
State law also requires that an express trust be created by the “direct or express words of a grantor or settler or by the intentional act of the party having dominion over the property,” an action the judge found missing in the case.
“The [PCUSA trust] clause is drafted by the [PCUSA] and not [Colonial] contrary to and in violation of Missouri law,” Del Muro said.
The PCUSA, via Heartland Presbytery, claimed Colonial submitted to its trust clause simply by being a member church in the denomination. The church’s bylaws stated that it was subject to the denomination’s constitution. However, the bylaws also stated that Colonial was subject to the laws of Missouri. And, the ruling insists, state law pertaining to trust creation supersedes the Book of Order.
Del Muro also found Colonial had not established an implied trust with the PCUSA since the denomination did not furnish the original deed and that Colonial had always retained title to property.
“The court finds that it would be [the PCUSA] who would be unjustly enriched by taking possession of [Colonial’s] property,” the judge stated.
‘God has revealed His will’
Reaction at Colonial was cautious but pleased as the church waits for Heartland’s next move.
“There is still a ways to go before this journey of uncertainty is finished,” lead pastor Jim West said in a recent letter to the congregation, noting that the presbytery could appeal the ruling – a move that could delay a final verdict for another year.
Prayer proved to be the most potent strategy throughout the process for Colonial. West told the Layman that the church relied on “a season of 24/7 prayer.”
“We called the church to pray for 10 days from June 2 to June 12 [two days after the decision],” West said. “We challenged them to not pray for victory; to not pray to keep our property. Don’t put God in a box – just ask ‘Thy will be done,’” he added.
“Colonial is confident that the Lord led us down this path. He has delivered us and He has received glory through this whole thing. For Colonial’s leadership, that was the most important deal.”
Repeated calls and e-mails to Heartland Presbytery were not returned as of June 14 so it is unclear whether or not an appeal will be made.
According to the Jackson County (Mo.) Assessment Department, Colonial’s Kansas City campus is valued at $4.7 million. The church’s Quivira campus in nearby Overland Park, Kan., is worth $10.57 million, according to the Johnson County Appraisers Office.
“My heart tells me that God has revealed His will, and that we should press forward with confidence regardless of any remaining uncertainty,” West stated. “I’m amazed how God reveals His will when the church prays,” he added.
Colonial was Heartland’s second largest congregation, according to a 2009 study.