News Archives

State supreme court rules against conference in property case

 


State supreme court rules against conference in property case

Dec. 3, 2004   

By Jeneane Jones*

SACRAMENTO, Calif. (UMNS) — The California State Supreme Court has denied a petition by a United Methodist regional office to review a property dispute involving a Fresno church.

The court refused to hear the petition from the United Methodist Church’s California-Nevada Annual (regional) Conference in the case of St. Luke’s, whose congregation broke away from the denomination in 2000. The conference argued that the denomination’s trust clause barred local congregations from taking their church property with them in such situations.

Robert M. Shannon, trial attorney for the California-Nevada Conference, called the Dec. 1 decision a disappointment. But he said it was only the most recent development in a process that would make the denomination and its trust clause – which dates back 250 years to Methodism’s founder, John Wesley – stronger.

“The Supreme Court was in a position to rule on an important question of law that affects thousands of local churches within the United Methodist denomination,” Shannon said. “This case not only impacts the United Methodist Church but other mainline denominations with similar methods of holding property. These other denominations could potentially see their own trust clauses challenged and invalidated using the St. Luke’s case.”
 
The United Methodist Church’s trust clause declares that the local church holds its property in trust for the denomination. The clause has been upheld in U.S. courts throughout the 200-plus history of the denomination in the United States.
 
St. Luke’s pastor and members left the denomination after disagreements over biblical interpretation and the enforcement of the denomination’s law book, the Book of Discipline. The congregation withheld apportionments — funds that support the ministry of the wider church — in protest of the conference’s decision not to discipline pastors for participating in a same-sex union service.

After the break, St. Luke’s members continued to meet on the disputed property.
 
In August, the California Fifth District Court of Appeal overturned the trial court decision that a local church could not revoke the trust clause. The appeals court found that St. Luke’s Church trustees violated their fiduciary duty to the United Methodist Church in attempting to do so.

At the time of the August ruling, the Rev. Kevin Smith, pastor of St. Luke’s, said, “I love the United Methodist Church. But they can’t just pick and choose which parts of the Discipline they want to adhere to.”

Smith said California’s corporate laws have always been on the side of the congregation. “California corporate law allows us, as owners of the property, to change terms of the trust in which we hold the property.”
 
Smith could not be reached for a reaction to the latest court ruling.

Bishop Beverly J. Shamana, who leads the California-Nevada Conference, called the state supreme court decision disturbing.

“One of our values is the continuity of ministry from one generation to the next,” she said in a statement. “We understand that disagreement is a part of living together. As United Methodists, we also know we are bound together for the common good of sharing the gospel of Christ that makes a difference in communities. The secular legal community has overruled our Book of Discipline with its interpretation of a California corporation code. This is disconcerting. But it does not stop ministry. It does not sever the Body of Christ.”

*Jones is communications director for the California-Nevada Annual Conference. Additional reporting was provided by United Methodist News Service.
 
News media contact: Kathy L. Gilbert, Nashville, Tenn., (615) 742-5470 or
newsdesk@umcom.org.


 

Ask Now

This will not reach a local church, district or conference office. InfoServ* staff will answer your question, or direct it to someone who can provide information and/or resources.

First Name:*
Last Name:*
Email:*
ZIP/Postal Code:*
Question:*

*InfoServ ( about ) is a service of United Methodist Communications located in Nashville, Tennessee, USA. 1-800-251-8140

Not receiving a reply?
Your Spam Blocker might not recognize our email address. Add this address to your list of approved senders.

Would you like to ask any questions about this story?ASK US NOW


Contact Us

This will not reach a local church, district or conference office. InfoServ* staff will answer your question, or direct it to someone who can provide information and/or resources.

Phone
(optional)

*InfoServ ( about ) is a ministry of United Methodist Communications located in Nashville, Tennessee, USA. 1-800-251-8140

Not receiving a reply?
Your Spam Blocker might not recognize our email address. Add InfoServ@umcom.org to your list of approved senders.