Lay Committee files amicus
supporting Indiana congregation
The Layman, February 1, 2011
The Presbyterian Lay Committee (PLC) and the American Anglican Council (AAC) have each filed an amicus (friend of the court) brief in support of the Olivet Evangelical Presbyterian Church’s appeal to the Indiana Supreme Court to overturn a previous ruling that awarded the congregation’s property to the Presbytery of Ohio Valley.
The PLC brief, which was filed in January, argues that the previous court ruling erred in its application of the neutral principles of the law and could detrimentally affect hundreds of congregations. It asks the Indiana Supreme Court to reverse the previous decision.
In December, the Appeals Court of Indiana struck down an earlier ruling that had awarded church property to the Evansville, Ind. congregation, following its split with the Presbyterian Church (USA) and new association with the Evangelical Presbyterian Church (EPC).
Declaring that Olivet’s participation in the denomination equates to compliance with the so-called trust clause – specifically its remaining in the PCUSA and agreeing to participate in Ohio Valley Presbytery’s dismissal process – the appeals court favored the presbytery based on its interpretation of the same neutral principles of law that often favors congregations.
Earlier this year, a local circuit court rejected claims by the presbytery and Synod of Lincoln Trails on Olivet’s property, awarding ownership to Olivet. That decision was based on applying the neutral principles of law to the deed and documents of ownership. The trial court also ruled that upon leaving the PCUSA Olivet was no longer bound by its rules, including the so-called trust clause.
But the appeals court applied the neutral principles of law differently than the trial court. That’s the reason the Supreme Court should hear the congregation’s appeal, according to the amicus brief.
“The court … found that a non-owner’s claim of a trust interest in property operated to divest the titled owner of the land of that interest based solely upon the denomination’s claim that it had that interest, irrespective of the owner’s desires,” the brief states. “In giving dispositive credence to the denomination’s claim the Court of appeals negated the doctrine of neutral principles and instituted a form of ‘denominational deference’ of questionable constitutional validity.”
According to the amicus brief, upholding the previous appeals court decision could divest hundreds of local congregations in Indiana of their property, against their will and intent.
“Should the decision … stand, a precedent will have been established which would allow a court to imply a trust and divest title holder owner of property,” the brief states. “This effects not only the obvious ownership interests of the landholder, but all who may have financial dealings with the landowner secured by that title. Any mortgage holder for church property is placed at risk by uncertainty of title. Obtaining loans will be complicated, all to the detriment of the various church entities, because of a potential cloud on title by virtue of their possible association with a denomination.”
The decision also raises questions about the courts entangling themselves in religious practice.
“Relying upon the Book of Order to establish a legal trust over property contradicts a provision it contains which clearly indicates it is not to have civil law effect,” the brief states. “This precedent raises the specter of giving effect to ecclesiastical declarations of trust based upon interpretation of church laws (constitutionally questionable) and without ever examining the sufficiency of the legal elements required to establish a trust. For this reason, a review of the case by this court is of utmost importance.”
The PLC amicus brief was funded through the ministry’s Legal Assistance Fund, provided by donors nationwide to assist congregations in retaining control of their property and assets in legal disputes with the denomination.