Church Law & Tax Report
July/August 2017
Feature Article

Is Your Church Breaking Public Accommodations Laws? 
To answer this question, churches must be well-versed in federal, state, and local laws.
Articles
Recent Developments
Issues that affect ministers and churches, with Richard R. Hammar
Wills, Trusts, and Estates
Provisions in Decedent’s Will Could Be Reformed by Recourse Based on Religious Charities’ Extrinsic Evidence 
The court noted that "the charities have articulated a valid theory that will support reformation if established by clear and convincing evidence."
Wills, Trusts, and Estates
Restrictive Provision in Churches’ Charitable Trust Can Be Expanded to Allow Additional Investments 
Case demonstrates that the low rates of return on such investments may enable churches to obtain a court order authorizing a broader range of investment options.
Sexual Misconduct by Clergy, Lay Employees, and Volunteers
Judge’s Severe Comments During Youth Pastor’s Trial Ruled Insufficient Grounds to Reverse Conviction 
Court fairly considered all of the evidence presented at trial and, despite its harsh rhetoric, imposed a sentence significantly under the maximum aggregate term that defendant faced.
Personal Injuries on Church Property or During Church Activities
Student Successfully Appeals Lawsuit Against Synagogue for Injuries Sustained During Study Abroad Program 
Case demonstrates that the host organization may be legally responsible for injuries that occur.
Church Members; Defamation
Court Rules First Amendment Bars Its Involvement in Defamation Claim Against Couple’s Former Pastor and Church 
Case illustrates the reluctance of the civil courts to resolve internal church disputes involving the discipline or dismissal of members.
Insurance
Court Rules Church’s Insurance Policy Exclusion Precludes Coverage for Church in Negligence Lawsuit 
Sexual misconduct exclusions in church insurance policies may apply even though a church is being sued on the basis of vicarious liability, negligence, or some other form of "indirect" liability.
Trial Court’s Order Banning Man Guilty of Food Stamp Fraud from Food Pantries Ruled Unlawful 
Churches that run food pantries need to ensure that beneficiaries are not obtaining food and then selling their food stamps to raise money for themselves.
Breach of Contract; Clergy - Discipline and Removal; Officers, Directors, and Trustees
Pastor’s Breach of Contract Lawsuit Against Board Members Dismissed by Court 
The court concluded that church board members are not personally liable for breach of contract, since "whenever a corporation makes a contract, it is the contract of the legal entity … and not the contract of the individual members."
Clergy - Discipline and Removal; Compensation and Benefits
Court Willing to Resolve Pastor’s Lawsuit Against Church for Compensation Dispute 
Court ruled that it was not barred by the "ministerial exception" and "ecclesiastical abstention doctrine" from resolving a claim by a pastor that his church had failed to pay him the salary and benefits to which they had contractually agreed.
Clergy - Discipline and Removal
‘Ministerial Exception’ Prevents Court from Resolving Dismissed Minister’s Wrongful Termination Lawsuit 
The court concluded if the application of the ministerial exception is obvious from the face of a civil lawsuit, then a pre-discovery motion to dismiss is appropriate.
Arbitration; Charters, Constitutions, and Bylaws
Mosque Members’ Lawsuit Concerning Financial Improprieties Must Be Resolved By Binding Arbitration Due to Mosque Bylaws’ Arbitration Clause 
Court concluded that the mosque's bylaws constitute a contract between it and plaintiffs.
Q&A

Q&A: Do Donor Envelopes Substantiate Contributions? 
Envelopes have a number of advantages, but substantiating donations isn't one of them.