Church Law & Tax Report
March/April 2009
Feature Article
Whose Church Is It? 
California Supreme Court rules on ownership issue between national Episcopal church and local parish that seceded.
Recent Developments
Issues that affect ministers and churches, with Richard R. Hammar
Compensation and Benefits; Employment Practices
Breach of Contract and the Ministerial Exception 
Court agrees to hear church organist's breach of contract lawsuit.
Compensation and Benefits
Clergy Compensation Disputes 
Court rules that it cannot resolve a pastor's lawsuit for breach of contract.
Charters, Constitutions, and Bylaws; Church Members
Expelled Church Members Sue Church, Directors and Officers 
Court agrees to resolve former members' complaint.
Sexual Misconduct by Clergy, Lay Employees, and Volunteers
Off-Premises Sexual Misconduct 
Employer not liable for employees' off-premises sexual assault.
Defamation
Can Opinions Be Defamatory? 
Former music director sues church for defamation after his dismissal.
Sexual Misconduct by Clergy, Lay Employees, and Volunteers
Segregation of Damages 
If this principle applies, exposure to monetary damages in sexual misconduct claims may be reduced.
Employment Practices
Hostile Environment Sexual Harassment 
Court rules that church employee's behavior does not qualify as harassment.
Employment Practices
Are Parochial School Teachers Ministers? 
Court rules that ministerial exception does not apply to teacher in Catholic school.
Employment Practices
Whistleblower Protections for Church Employees 
Dismissing or disciplining a whistleblower can have legal consequences.
Q&A
Q&A: Pastor's Taxable Income? 
A no-interest loan to a pastor brings up a number of issues.