Church Law & Tax Report

The Virginia Supreme Court ruled that a church lost title to a portion of its property in a boundary line dispute because an adjacent property owner acquired title to the disputed property through adverse possession by openly occupying and maintaining the disputed property with an intent to claim it as her own regardless of the actual legal boundary line.

An Arkansas court ruled that a church that occupied a building for several years failed to establish ownership through adverse possession since it did not prove that it occupied the building with an intent to displace the true owner.

The Tax Court ruled that miles driven by a minister from his home to a pastoral call are commuting miles that cannot be deducted or reimbursed as a business expense.

In an important decision, an Alabama court ruled that the clergy-penitent privilege does not apply to conversations with a minister in which the counselee communicates a threat to kill or seriously harm another person.

A Missouri court ruled that a charity could be sued by a bookkeeper who was dismissed as a result of her reporting financial improprieties by her supervisor.

A Virginia court ruled that a church that was destroyed by fire and that was insured for only one-third of the value of the property could sue its broker and insurance company for the balance.

A Louisiana court ruled that a church insurance policy did not provide any coverage for a pastor who was sued as a result of his sexual molestation of a minor girl.

A New York court ruled that a church was not legally responsible for injuries sustained by a member who slipped on a puddle of water in a church hallway near a water fountain.

A Louisiana court found a pastor guilty of sexually molesting an adolescent girl.

A Florida court ruled that churches and denominational agencies that dismiss clergy for sexual misconduct, and that later provide them with financial assistance to enable them to pursue studies in another profession, are not liable for injuries they cause in the course of their new profession.

An Illinois court ruled that a church's parking lots, a storage building, and a former sanctuary that had been badly damaged in a fire, were all exempt from property taxation.

A Louisiana court ruled that a church music director who claimed to have suffered increased sensitivity to chemicals as a result of her exposure to pine scented Lysol at church was not eligible for workers compensation benefits.

A Virginia court ruled that amounts payable to a church under its insurance policy following the complete destruction of its sanctuary in a fire would not be reduced by the amount of contributions the church received from sympathetic donors following the fire.

A New York court ruled that a church might be legally responsible for injuries occurring during the activities of a Boy Scout troop sponsored by the church.

Liability could not be avoided even if an independent contractor ran the "inherently dangerous activity."