Churches' Liability After Out-of Court Settlements

• Key point. A church or denominational agency cannot be liable for a pastor's sexual misconduct if the victim enters into a settlement releasing the pastor from liability.

• Key point. A denomination's bylaws do not impose a fiduciary duty upon the denomination to protect church members from sexual misconduct.

! The North Dakota Supreme Court ruled that a denominational agency could not be liable for a pastor's sexual misconduct since the victim had entered into an agreement releasing the pastor from liability. A police officer was killed in the line of duty. His widow sought out her pastor for counseling. Within a few months, the pastor initiated a sexual relationship with the widow. The affair lasted for nearly a year, at which time the pastor was assigned to a position in another state. The couple continued their relationship for seven years, meeting four or five times each year ...