PCUSA lawyer clouds
Kirk settlement proposal
By John H. Adams, The Layman, October 22, 2008
The Presbyterian Church (USA) has notified attorneys in the property dispute between the Presbytery of Eastern Oklahoma and Kirk of the Hills Presbyterian Church that it will not consent to a settlement unless the trial court issues a ruling favoring the denomination.
Dean Luthey, a Tulsa lawyer who has handled a number of ecclesiastical disputes, sent the attorneys on both sides this message: “For the PCUSA to sign any release and or dismissal there will need to be an order or judgment memorializing the PCUSA’s success on its motion for summary judgment against the plaintiff reciting both the hiearchical deference ground and the neutral principals ground announced by the Court.”
“This could end up being a deal breaker,” said Tom Gray, co-pastor of the Kirk, now affiliated with the Evangelical Presbyterian Church. “The judge failed to finalize a judgment. We made the deal. Now they want to hold the closing on the basis of us having to wait for the judge to complete his judgment.”
Tulsa District Judge Jefferson Sellers has verbally ruled the denomination is the owner of the property. Before writing his order, he invited attorneys to suggest the wording. As a result of that hearing, Sellers decided to change his ruling from a “final judgment” to an “interlocutory adjudication,” allowing for further arguments by the attorneys. During that process, his ruling could change and leave the denomination without its desired “judgment memorializing the PCUSA’s success.”
But Luthey said the final verdict must be rendered – and must be favorable to the PCUSA – before the denomination would sign any release allowing the Kirk to pay $1.75 million for a clear title to its buildings and land.
Wayne Hardy, Gray’s co-pastor, told The Layman that an attorney for the Kirk had notified Luthey and presbytery attorneys that the denomination’s demand could be seen as an attempt to force the judge to rush to a ruling favorable to the PCUSA. He urged the presbytery and PCUSA lawyers to allow the settlement to continue as approved.
The Kirk congregation voted 508-483 on Oct. 19 to accept the presbytery’s settlement rather than continue to seek a favorable ruling in court. The settlement made no mention of the likelihood that the denomination would intervene. The presbytery did strongly deny assertions by the Kirk’s attorneys, who asked whether the Synod of the Sun might try to overturn the deal.
These are the terms of the presbytery’s offer:
- The Kirk of the Hills Corporation (“Kirk”) will agree to pay the Eastern Oklahoma Presbytery (“EOP”) the amount of $1,750,000 in exchange for an effective transfer of ownership and title to all real and personal property at issue in the litigation …
- Closing would occur on or before November 15, 2008.
- At Closing, there would be an exchange of mutual releases and the EOP, the Presbyterian Church (USA) (“PCUSA”) and Kirk would dismiss with prejudice any and all claims against each other including all officers, directors, trustees, employees, attorneys, accountants, banks and insurance carriers. The affidavit filed by the EOP in the Tulsa County Land records would be released as to the property to be conveyed to the Kirk. Further, the EOP will agree that they will assert no further claims nor will they take the position that the Kirk of the Hills Church, the Kirk of the Hills Corporation, Joppa Church Corporation or any of their respective members are still affiliated with the EOP or PCUSA such that any of their respective property would still be subject to a trust clause or any other restriction under the Book of Order once the purchase transaction is closed.
- This settlement is approved by EOP at a duly called meeting.
- The settlement is approved by the Kirk congregation and corporation at a duly called meeting …
- EOP and the Kirk will provide written representations that all of their actions regarding the approval of the settlement agreement and the obligation to sell and transfer title to the property in question are in compliance with their governing documents.
- Action on the enforcement of Judge Sellers’ decision shall be stayed by agreement of all parties until the earlier of 30 days after (i) the date on which this agreement is voided due to failure to approve such an agreement by the Kirk or the EOP or (ii) November 15, 2008.
- The terms of this proposal and any definitive settlement agreement reached as a result of this proposal shall not be confidential.