Indiana church that was dismissed from PCUSA sued over property
By Patrick Jean, Staff Writer ,The Layman Online, July 20, 2007
An Indiana church that was granted its request to be dismissed from the Presbyterian Church (USA) late last year is now being sued by the Presbytery of Ohio Valley and the Synod of Lincoln Trails over the church’s property.
Olivet Evangelical Presbyterian Church in Evansville is one of two defendants in the lawsuit, which was filed July 2 in Vanderburgh County Circuit Court in Evansville. The other defendant is the Evangelical Presbyterian Church, which the Olivet congregation joined after leaving the PCUSA.
The lawsuit contends that because Olivet Church assumed sole control over its property and is not using it for the purposes of the PCUSA, it has breached the December 2006 agreement that led to its dismissal to the EPC.
The litigation seeks a declaratory judgment in favor of the plaintiffs and either of two orders. The first order would:
- 1. Declare “that all matters set forth herein above should be decided and resolved according to the Constitution of [the] Presbyterian Church (USA), and that by reason of the defendants’ breach or failure to meet the conditions set forth in the resolution, the Olivet defendants remain subject to the governance of the Presbyterian Church (USA).”
- 2. Impose “a constructive trust on the interests in favor of the presbytery, until such time as the matter can finally be resolved in the ecclesiastical courts of the Presbyterian Church (USA).”
The second order would:
- 1. Declare “that the defendants have no right, title or interest in the interests, including the property, personalty and accounts and any proceeds therefrom.”
- 2. Impose “a constructive trust on the interests in favor of the presbytery, determining that any interest held by any defendant is one held in trust for the Presbyterian Church (USA), and holding the defendants responsible for rent and any and all damages to and diminution in value of the interests since the Olivet Church’s disassociation from the Presbyterian Church (USA).”
- 3. Grant “quieting title to the property in favor of the presbytery and against the defendants.”
- 4. Require the defendants “to convey unconditionally to the presbytery as trustee for the Presbyterian Church (USA) all of defendants’ rights, titles and interests in the interests.”
- 5. Grant “an order of replevin in favor of the presbytery and against defendants for the personalty.” (A replevin is a legal form or action typically used to recover possession of specific personal property unlawfully withheld from a plaintiff.)
- 6. Require “an accounting of the accounts for … funds received by the defendants before and after Dec. 7, 2006, or relating to, arising from, or which are proceeds of the interest, and awarding all such amounts to the presbytery.”
- 7. Award the plaintiffs “their attorneys’ fees, costs and expenses incurred in connection herewith.”
- 8. Grant the plaintiffs “all other relief at law or in equity to which they are entitled.”
The case has been assigned to Judge Carl A. Heldt but does not yet have a hearing date, said Judy L. Woods, an Indianapolis attorney who is part of the legal team representing the presbytery and synod. The defendants have until July 25 to respond, she said.
The Rev. Dr. Jeffrey Jeremiah, stated clerk of the EPC, declined to comment on the lawsuit, and the Rev. David Mills, pastor of Olivet Church, could not be reached for comment on the suit.
Presbytery makes case online
Ohio Valley Presbytery has a page on its Web site about the lawsuit. The page features links to a news release; letters from the executive presbyter and the president of the board of trustees; and the court documents.
“The presbytery seeks a declaration that it is the legal owner of the church property, but has not sought to evict the Olivet congregation from the building,” the news release states. “Before filing the lawsuit, the presbytery made repeated efforts to come to an amicable agreement for the lease and use of the property, but the Olivet congregation refused to negotiate, and is now claiming an exclusive right to occupy the property. The presbytery would like to see a resolution of this dispute that allows both denominations to fulfill their respective missions.”
The letter from the Rev. Lorna Kuyk, executive presbyter, expresses regret that conversations about the church’s property have not moved forward. “How do we accomplish the details of separation that will honor our mutual responsibilities to be faithful?” she writes. “It is our desire that the courts will require mediation and if mediation fails, determine who owns the property. It is an attempt to hold conversation that will be productive when all other means to that conversation seem to have ended.”
Kuyk emphasizes “what is not true” in her letter. “We do not desire to destroy Olivet’s ministry by depriving them of their worship and ministry space,” she writes. “We are not giving them the building for a dollar. Rather, we seek the court’s assistance in reaching an agreement that will provide for a continuation of Olivet’s mission in their current buildings while furthering the PCUSA’s mission in Evansville.”
The letter from the Rev. Rob Allen, president of the board of trustees, explains in detail why the presbytery filed the lawsuit. “The presbytery has asked for this assistance from the court neither as a punitive measure nor as a pre-emptive strike, but as the most appropriate, civil way for resolving the situation based on the impasse of the parties,” he writes. “Once we have a court ruling, we can determine best how to proceed.”
Allen repeats Kuyk’s hope that the court will impose mediation. “If possible, we can reach resolution decisions face-to-face and not leave everything to attorneys and the courts,” he writes. “In seeking judicial assistance, we hope to resolve issues that may now be a distraction and impediments to worship and mission within our community of faith.”
Allen, who is pastor of Hemenway Memorial Presbyterian Church in Boonville, Ind., also expresses hope that the resolution will serve as an example to be followed. “If history ultimately records our effort as being successful, we will have provided a model whereby future matters of this nature will be determined with honor, integrity and love,” he writes. “Likewise, we will have forwarded a process that seeks to achieve justice and show compassion for all the participants involved.”
Defendants are ‘criminals’
Yet, for all the flowing prose in the letters about hopes for a graceful resolution, the lawsuit contains harsh language and allegations against Olivet Church and the EPC. The most damning statement accuses the defendants of criminal activity.
“By effectively assuming sole control over the trust property and using it for defendants’ purposes and not for the purposes of the Presbyterian Church (USA) and the presbytery, the defendants have engaged in wrongful conduct, including criminal conversion, criminal theft, criminal deception, criminal fraud, self-dealing, breach of trust and/or breach of fiduciary duty,” the lawsuit states.
The lawsuit also accuses Olivet Church of violating the PCUSA constitution that it had promised to uphold:
- The first violation came in September 2006, the lawsuit states, when the church, “without prior notice to the presbytery or the Presbyterian Church (USA) … amended its articles of incorporation to change its name and to attempt to place the interests beyond the control of the presbytery or the Presbyterian Church (USA) in breach of its trust obligations” to the PCUSA.
- The second violation is ongoing, the lawsuit states, as the defendants “have now claimed all right, title and interest in the interests, including the property, personalty and accounts, as their own and to the exclusion of any right, title or interest of the presbytery or the Presbyterian Church (USA).”
The lawsuit claims that the defendants:
- “Are estopped from asserting any right, claim or interest in the interests, including the property, personalty or accounts, adverse to the rights, claims and interest of the presbytery and the Presbyterian Church (USA).
- “Have never had and still do not have any right, power or authority to take, hold, convey or otherwise transfer the interests, including the property, personalty or accounts, without the consent of the presbytery and for the benefit of the Presbyterian Church (USA).”
While Kuyk and Allen express hope for a mediated settlement, the lawsuit makes it clear that the court should find for the plaintiffs.
“Any determination as to the lawful ownership of the real and personal property that is the subject of this dispute should be resolved in accordance with the Presbyterian Church (USA) constitution, including the Book of Order,” the lawsuit states. “This court must give hierarchical deference to the procedures, rulings and holdings of ecclesiastical courts of the Presbyterian Church (USA) in accordance with the Presbyterian Church (USA) constitution, the Indiana constitution, the United States Constitution and other applicable laws, statutes and/or regulations.”
The lawsuit argues that the presbytery is entitled to:
- 1. “A determination of the rights and interest, including the right to possession of the interests, including the property, personalty and accounts and all proceeds therefrom, of the parties.
- 2. “Quiet title in its name for the property, personalty and accounts and all proceeds therefrom.
- 3. “A judgment declaring that it is entitled to the interests, to be held in trust for the use and benefit of the Presbyterian Church (USA).”
- 4. Its mortgage liens and those of the PCUSA being declared “superior to all liens, claims or interests asserted by all defendants … and plaintiffs’ mortgages should be foreclosed and the real estate sold in the manner provided by law.
- 5. “Receive the full value of the interests, including the property, personalty and accounts, the benefit and enjoyment of them, any proceeds therefrom and damages for any diminishment in value or damages thereto resulting from the defendants’ wrongful conduct.”
‘Find that redemptive path’
In an interview with The Layman Online before the lawsuit was filed, Mills said Olivet Church would not file litigation for a declaratory judgment because it would force the presbytery to make its case in the civil court system.
“We just feel that it would be ironic to leave the denomination because we felt that they weren’t following any sort of Scripture and then disobey Scripture by taking our brothers to court,” he said.
Mills raised the possibility of walking away from the property if the church was sued.
“If we get taken to court,” he said, “then we have to make that decision there where, at that time, the Lord could just tell us, ‘It’s more important for the Kingdom of God to walk away’ – never, never, never declaring that they own the property – so as not to drag the Christian Church through the mud in the public papers and that kind of thing. … So, the Lord will lead us in that decision at that time.”
Mills, who has been pastor of Olivet Church for 14 years, said his church is trying to “find that redemptive path, and not dishonor Jesus in any way through that process. … There is a lot at stake, a lot at stake here for the ministry of Olivet Presbyterian Church. We’re not combative at all. We just are trying to find the Lord’s will for this process.”
Mills also continues to hold out hope for his former denomination.
“We still are seeking the face of Jesus,” he said. “We still are praying that there will be a renewal and a revival in the PCUSA and that this awesome church – which has 11,000 beachheads out there where the Gospel can be proclaimed – would return to its own constitution, would return to its Biblical roots and begin partnering again in the Kingdom of God.”
Patrick Jean is a staff writer for The Layman and The Layman Online. He can be reached at pjean@www.layman.org.