Presbytery of Ohio Valley v. Olivet Presbyterian Church
Indiana court will broadcast arguments
online in church-property clash
By Jason P. Reagan, The Layman, August 30, 2011
Arguments in a church-property case that could set a legal precedent in Indiana are scheduled to be broadcast online.
The Indiana Supreme Court will offer live web-streaming of oral arguments in a property dispute between Olivet Evangelical Presbyterian Church of Evansville, Ind. and the Presbytery of Ohio Valley. The webcast will begin at 10:30 a.m. EDT on Thursday, Sept. 1.
According to the Indiana Supreme Court, most appeals are adjudicated in written form after each side files legal briefs. “However, in some cases, a court may choose to set an oral argument, which provides an opportunity for appellate judges to question attorneys in person about the material they have included in the written briefs they filed earlier with the court,” states the court’s website.
The case
Citing theological differences, Olivet was dismissed from the Presbyterian Church (USA) in 2006 and has since fought a back-and-forth battle to retain property it has owned since 1968.
In 2010, the state appellate court dealt the church a legal setback when it unanimously ruled that Olivet retained no rights to its property and that the presbytery had established a constructive trust on the 11-acre tract.
The three-judge panel stated the church acknowledged the PCUSA’s authority over it when it negotiated the terms of dismissal, thereby agreeing to the denomination’s trust clause.
“Olivet reaped the myriad benefits of being affiliated with a national organization,” the decision read. “When Olivet decided to leave the PCUSA, it did so by following the procedures set forth in the PCUSA Constitution.”
However, the court also acknowledged in its decision that the church’s “warranty deed stated that the property was conveyed to ‘Olivet Presbyterian Church.’”
The case may help define where Indiana stands on the issue of church property. Generally, state courts have been guided by one of two standards: neutral principle or hierarchical deference.
Under neutral principle, courts must evaluate property cases such as Olivet strictly upon secular legal documents such as deeds and trust documents that have been properly executed according to state law without regard for denominational policies like those found in the PCUSA’s Book of Order.
With hierarchical deference, courts defer to the decisions or precedents of the denomination’s highest governing body.
In previous legal decisions, Indiana courts have applied both principles.
In 2006, Presbytery of Ohio Valley approved Olivet’s dismissal and decided to retain the $2.45 million property. Olivet rejected the decision, as well as the presbytery’s decision to lease the property. Ohio Valley sued in 2007. In Vanderburgh County Circuit Court, Olivet won the dispute only to see the decision reversed in 2010.
In January, the Presbyterian Lay Committee (PLC), as well as the American Anglican Council (AAC) filed an amicus (friend of the court) brief to support Olivet’s appeal to the state Supreme Court. The PLC brief challenged the appellate court’s application of neutral principles of the law and called on the higher court to reverse the decision.
As for Olivet, the congregation plans to pray for all five members of the Indiana Supreme Court.
“We all recognize [the property is] not ours. It’s not the presbytery’s – it’s God’s,” said Olivet Pastor David Mills in June. “The question is really one of stewardship … we believe we’re the primary stewards,” he added.
The Supreme Court is comprised of Justice Randall T. Shepard, Justice Brent E. Dickson, Justice Frank Sullivan, Jr., Justice Robert D. Rucker and Justice Steven H. David.
To access the oral arguments, users must have Windows Media Player installed (click here to download).
The live webcast will be available two minutes before oral arguments begin. An archived copy may be made available two hours after the beginning of the hearing. The court has been streaming webcasts of arguments since 2001.