Church Not Liable for Molestation

Court ruled church not liable for molestation of minor student by teacher on basis of negligent hiring

Church Law and Tax Report

Church Not Liable for Molestation

Court ruled church not liable for molestation of minor student by teacher on basis of negligent hiring

Key point 10-04. A church may be liable on the basis of negligent selection for a worker’s molestation of a minor if the church was negligent in the selection of the worker. Negligence means a failure to exercise reasonable care, and so negligent selection refers to a failure to exercise reasonable care in the selection of the worker. Liability based on negligent selection may be imposed upon a church for the acts of employees and volunteers.

Key point 10-04.2. Some courts have found churches not liable on the basis of negligent selection for the molestation of a minor by a church worker since the church exercised reasonable care in the selection of the worker.

* A New York court ruled that a church was not liable on the basis of negligent hiring for the molestation of a minor student by a teacher. Prior to hiring the teacher the church contacted one of the three personal references listed on her employment application. This reference, who was a parent of a student who attended the church’s school, stated that she had known the teacher for many years and considered her to be “a wonderful person.” The church did not contact the other two references, and did not confirm the teacher’s prior employment history or contact any of her prior employers for a reference. The church did conduct a “Safe Environment” background check, which did not indicate that the teacher had been engaged in any prior criminal misconduct.

‘There is nothing here to indicate that a further investigation of [the teacher] was necessary.’

The church hired the teacher as a part-time music and gym teacher for kindergarten through the eighth grade. She groomed and eventually sexually assaulted one of her students. The victim sued the church, claiming that it was responsible for the teacher’s acts on the basis of negligent hiring. The court noted that “a necessary element of negligent hiring is that the employer knew or should have known of an employee’s propensity for the conduct that caused the injury.” The court pointed out that the church had contacted one reference, and conducted a “Safe Environment” criminal records check, which revealed no prior misconduct. Any duty to investigate further into the teacher’s fitness and background “may be imposed upon the employer only if it knew facts that would lead a reasonably prudent person to investigate the prospective employee. There is nothing here to indicate that a further investigation of [the teacher] was necessary, as there was nothing criminal in her background check. While [the church] may not have confirmed or contacted anyone from her prior work experience [the victim] has not submitted any evidence showing that checking more references would have revealed any improper conduct …. As such, the cause of action for negligent hiring is dismissed.” Jones v. Roman Catholic Archdiocese, 918 N.Y.S.2d 398 (N.Y. Sup. 2010).

Associate Pastor Sues Church for Senior Pastor’s Sexual Harassment

Employer is liable for supervisory employees’ acts of harassment

Church Law and Tax Report

Associate Pastor Sues Church for Senior Pastor’s Sexual Harassment

Employer is liable for supervisory employees’ acts of harassment

Employment practices

Key point 8-12.5. Sexual harassment is a form of sex discrimination prohibited by Title VII of the Civil Rights Act of 1964. It consists of both “quid pro quo” harassment and “hostile environment” harassment. Religious organizations that are subject to Title VII are covered by this prohibition. An employer is automatically liable for supervisory employees’ acts of harassment, but a defense is available to claims of hostile environment harassment if they have adopted a written harassment policy and an alleged victim fails to pursue remedies available under the policy. In some cases, an employer may be liable for acts of sexual harassment committed by nonsupervisory employees, and even nonemployees.

* A federal court in New York ruled that a church’s associate pastor could sue the church as a result of the senior pastor’s sexual harassment. A church employed an adult male (the “plaintiff) as a part-time pastor to assist the church’s senior pastor. The plaintiff claimed that the senior pastor engaged in both sexual discrimination and sexual harassment against him. Specifically, he claimed that she: (1) changed the format of the service to restrict his participation and work responsibilities in weekly services and to increase the participation of a less senior female associate pastor; (2) limited his raises to the minimum allowed by denominational guidelines while at the same time giving the church’s female associate pastor additional responsibilities and significant pay raises; (3) belittled and embarrassed him in front of other pastors and the congregation for his disabilities; (4) berated him in her office; and (5) sexually harassed him by complimenting his appearance, calling him “hot,” saying how they would look good as a couple despite being asked to stop. The plaintiff alleged that he informed the church and a regional denominational agency of the abusive treatment but they failed to take any protective action. He further claimed that when he complained about the discrimination he was threatened with the loss of his pastoral license.

The plaintiff sued the church for sex discrimination and sexual harassment. The court’s decision is summarized below.

gender discrimination

The court denied the church’s motion to dismiss the gender discrimination claim. It noted that the plaintiff alleged circumstances that gave rise to an inference of discrimination. In particular, he alleged that when the new senior pastor assumed her duties he began to experience a decrease in his work responsibilities and did not receive pay increases while a less experienced female associate pastor received raises and increased responsibilities. This treatment continued until he took medical leave and was fired. The court concluded: “Because the plaintiff alleges disparate treatment based on his gender by his direct supervisor which lead (sic) to a decrease in his job responsibilities and eventually his termination, he has sufficiently alleged gender discrimination.”

sexual harassment

The plaintiff also alleged that the senior pastor’s actions amounted to sexual harassment. Sexual harassment is a form of gender discrimination prohibited by Title VII of the Civil Rights Act of 1964. Equal Employment Opportunity Commission (EEOC) regulations define sexual harassment as follows:

(a) Harassment on the basis of sex is a violation of Sec. 703 of Title VII. Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when (1) submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment, (2) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, or (3) such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment.

According to this definition there are at least two separate types of sexual harassment:

(1) “quid pro quo” harassment, which refers to conditioning employment opportunities on submission to a sexual or social relationship, and

(2) “hostile environment” harassment, which refers to the creation of an intimidating, hostile, or offensive working environment through unwelcome verbal or physical conduct of a sexual nature.

The plaintiff claimed that the senior pastor was guilty of hostile environment harassment. The court noted that a claim of hostile work environment requires showing: “(1) that the harassment was sufficiently severe or pervasive to alter the conditions of the victim’s employment and create an abusive working environment, and (2) that a specific basis exists for imputing the objectionable conduct to the employer.”

The court noted that a plaintiff “can make a showing of hostile work environment by demonstrating either that a single incident was extraordinarily severe, or that a series of incidents were sufficiently continuous and concerted to have altered the conditions of the working environment.” The court recounted the plaintiff’s evidence supporting his claim of hostile environment sexual harassment, and concluded that it was “not sufficiently linked to gender and does not rise to the level of a hostile working environment.”

Application. This case is important for two reasons. First, it illustrates that “hostile environment” sexual harassment is not implicated by every offensive comment or act. Rather, the harassment must be “severe or pervasive enough to create an environment that a reasonable person would find hostile or abusive, and the victim must subjectively regard that environment as abusive.”

Second, this case illustrates that sexual harassment is gender-neutral, and exists regardless of the gender of the perpetrator. 2010 WL 980708 (N.D.N.Y. 2010).

* See also “Clergy—selection,” Thibodeau v. American Baptist Churches, 994 A.2d 212 (Conn. App. 2010), in the Recent Developments section of this newsletter.

Application of the FLSA Minimum Wage and Overtime Requirements to a Church Employee

New York court rules Episcopal church custodian not entitled to overtime or minimum wage under FLSA.


Key point 8-08.2.
The Fair Labor Standards Act mandates that employers pay the minimum wage, and overtime compensation, to employees who work for an enterprise engaged in commerce. There is no exception for religious organizations, but there are exceptions for certain classifications of employees.

Key point 8-08.3. The Fair Labor Standards Act mandates that employers pay the minimum wage, and overtime compensation, to employees who are engaged in commerce or in the production of goods for commerce. There is no exception for religious organizations, but there are exceptions for certain classifications of employees.

A federal district court in New York ruled that a custodian who worked for an Episcopal church was not entitled to minimum wage or overtime pay under the Fair Labor Standards Act since the church was not an "enterprise" and the custodian did not qualify for individual coverage.

In 1982, a church hired a new custodian (the "plaintiff") to clean the church. The plaintiff worked seven days a week. On Sundays, he worked from 7 a.m. until services ended. On all other days he worked from 8 a.m. to 5 p.m., though he often cleaned the church after evening services. His custodial duties included sweeping, mopping, and vacuuming the buildings and bathrooms, removing garbage, flushing the air conditioner, maintaining the boiler, and clearing the sidewalks of trash, leaves, and snow. The plaintiff was on-call at all hours if a problem arose with the electricity, plumbing, air conditioner, or boiler. When a new pastor was hired by the church in 1999, he increased the hours the plaintiff worked by requiring him to turn off the building's alarm at 7 a.m. and turn on the alarm after church functions concluded every evening.

The plaintiff paid the electrical, plumbing, and oil vendors on behalf of the church, purchased cleaning supplies, picked-up church vestments and the pastor's personal clothing from the dry-cleaners located across the street, delivered mail to the post office, and folded 800 church bulletins each week or took the bulletins to a local printing shop. The church reimbursed the plaintiff by check for these church-related purchases.

From 1982 until 2007 the plaintiff lived in the two-bedroom apartment located in a church building. Beginning in 1982, he earned $70 per week in wages and lived in the apartment rent-free. In 1986, the church's finance committee began requiring the plaintiff to pay $250 per month in rent for the apartment. In 2000, the church increased the plaintiff's bi-weekly wage to $519.76. In 2002, the church increased his bi-weekly wage to $625, an amount the pastor believed to be adequate compensation for forty hours of work per week. In addition to his wages, the plaintiff received $50 per event for helping during each event and cleaning afterward. He also received Christmas bonuses, though not every year. No one at the church recorded the hours the plaintiff worked. In 2004, the church paid two additional people to clean the buildings.

In September 2005, the plaintiff requested medical leave to undergo surgery and receive treatment. Throughout his convalescence, he continued to turn the alarm off and on every day and perform some of his custodial duties, such as shoveling snow and vacuuming the church, and the church continued to pay him. In February 2006, he provided the church with a letter from his doctor stating that he could return to work full-time in March 2006. On February 10, 2006, the pastor and an associate pastor met with the plaintiff and terminated his employment because the church "could no longer afford to wait for him and decided instead to let him go." The church offered the plaintiff several severance packages, but he rejected them all.

In 2007, the plaintiff sued the church to recover unpaid minimum wages and overtime compensation pursuant to the federal Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL). The plaintiff also complained that the church failed to maintain adequate written records for hours worked and wages earned in violation of the FLSA and NYLL. The church asked the court to dismiss the case on the ground that the FLSA does not cover the church as an "enterprise" or the plaintiff as an individual employee.

The Fair Labor Standards Act

The FLSA requires that an employer pay minimum wages and an overtime wage of not less than one-and-a-half times the regular rate for hours worked in excess of 40 hours in a single work week if an employee is either (1) employed by an enterprise engaged in commerce or in the production of goods for commerce, or (2) engaged in commerce or in the production of goods for commerce. The two categories are commonly referred to as "enterprise" and "individual" coverage, respectively.

The employee bears the burden of establishing either enterprise or individual coverage. The burden then shifts to the employer to establish a specific exemption.

enterprise coverage: combining the church and diocese

The FLSA covers an enterprise engaged in commerce or in the production of goods for commerce if:

  1. employees engaged in commerce or in the production of goods for commerce, or employees handled, sold, or otherwise worked on goods or materials that have been moved in or produced for commerce by any person, and
  2. the enterprise has no less than $500,000 in annual gross volume of sales made or business done.
  3. The plaintiff conceded that the church did not meet this definition of an enterprise, but he claimed that the combination of the church and local diocese did meet the definition. The court conceded that two entities can be combined in applying the definition of an enterprise if (1) the entities engage in related activities performed through unified operation or common control, (2) for a common business purpose. To support the claim of unified operation or common control, the plaintiff described the hierarchical structure of the Episcopal Church where parishes financially support the dioceses and in return receive administrative and financial support and the right to perform religious activities.

    (1) related activities performed through unified operation or common control

    However, the court stressed that the diocese was not a party to this lawsuit, and that if the plaintiff claims that separate entities perform related activities through unified operation or common control, then he must "name each entity as a defendant in the action." Since he did not do so, the court "cannot consider the diocese in determining whether the church constitutes an enterprise because the diocese is not a party to this action. Even if the plaintiff had named both the church diocese as defendants, the court concluded that they could not be combined in determining enterprise coverage:

    Even if the plaintiff had sued the diocese, the court would not reach the merits of whether the diocese constitutes an enterprise because summary judgment would be granted in favor of the diocese on the threshold question of FLSA coverage. The FLSA applies only to an "employer" who "suffers or permits" an "employee" to work. If the plaintiff sued the diocese and church, then he would have the burden of proving that he constitutes an employee of the diocese or an employee of both the diocese and church as joint employers. [A federal appeals court] has identified nonexclusive factors to aid the courts in determining the "economic reality" of the relationship between an individual and an alleged employer, such as whether the alleged employer (1) had the power to hire and fire the individual, (2) supervised and controlled employee work schedules or conditions of employment, (3) determined the rate and method of payment, and (4) maintained employment records. Where an individual alleges that two entities constitute joint employers, courts must also consider whether both entities have "functional control over workers even in the absence of the formal control measured by the [preceding] factors."

    Considering all factors and facts to ascertain the economic reality here, the plaintiff constituted an employee of the church alone. Employees of the church had the power to hire and fire the plaintiff; the pastor hired the plaintiff in 1982 and his successor fired him in 2006. [The pastors] supervised and controlled the plaintiff's work schedule and conditions of employment; [one of the pastors] required the plaintiff to work seven days a week from eight in the morning until at least five in the evening and his successor increased the hours the plaintiff worked to include turning off the building's alarm at seven every morning and turning on the alarm after church functions concluded every evening. The pastors determined the rate and method of payment …. Checks used to pay the plaintiff for all wages and reimbursements were printed with the account name and address of the church and signed by church employees. Neither the diocese nor the church maintained employment records. There is no evidence that the diocese had any control over the plaintiff's work as a custodian for the church. He could not prove that the diocese and church constitute joint employers. The diocese is not relevant in this action or in theory.

    (2) common business purpose

    The second factor that must exist for two entities to be combined in determining enterprise coverage is a common business purpose. The court noted that a Department of Labor ("DOL") regulation provides nonprofit organizations with an exemption from the definition of an "enterprise." 29 C.F.R. § 779.214. An organization that performs religious, educational, or charitable activities "does not perform these activities for a business purpose, and thus does not constitute an enterprise, unless the activities compete in the marketplace with ordinary commercial enterprises."

    The court noted that in only two cases had a religious organization been found to have a business purpose:

    Tony & Susan Alamo Foundation v. Secretary of Labor, 471 U.S. 290 (1985). A church operated 33 businesses, including service stations, retail clothing and grocery outlets, hog farms, roofing and electrical construction companies, a recordkeeping company, a motel, and companies engaged in the production and distribution of candy, in three states. The United States Supreme Court found that the church constituted an enterprise because the businesses engaged in ordinary commercial activities that competed with other commercial enterprises, even though employees were "spreading the gospel."

    Boekemeier v. Fourth Universalist Society, 86 F.Supp.2d 280 (S.D.N.Y. 2000). A New York church employed a staff to solicit, through monthly mass mailings, press releases, and advertisements, intrastate and interstate renters for events. The court found that the church constituted an enterprise because the extent and result of the church's efforts to secure rental activity competed directly with other commercial landlords and rental facilities. The court also highlighted the fact that income from the rental activity supplemented church operations, as rental fees constituted 80 percent of the church's income.

    The plaintiff insisted that the church was engaged in a business purpose because of the rental of its facilities for weddings and other social events, and that it was competing with commercial enterprises. The court concluded that the church's rental activities did not constitute a business purpose that competed with commercial enterprises, since (1) the church rented its facilities for weddings and social events only 10 times per year; (2) the church did not advertise or market its properties for events; (3) the church did not employ a staff to solicit renters; (4) rental fees constituted only 4 percent of the income raised by the church. The court concluded that "no reasonable inference can be drawn in favor of the claim that this activity competes with ordinary rental facilities to serve the general public or that the church relied on rental income to support church operations."

    enterprise coverage: employees engaged in commerce

    The FLSA covers an enterprise where "employees engaged in commerce or in the production of goods for commerce, or employees handled, sold, or otherwise worked on goods or materials that have been moved in or produced for commerce by any person." The court concluded that the plaintiff's handling of janitorial goods that had moved in commerce was more than sufficient to invoke enterprise coverage.

    enterprise coverage: the $500,000 annual sales requirement

    The court noted that the FLSA will not cover an entity that has less than $500,000 in annual gross volume of sales made or business done. Charitable contributions donated to a nonprofit "are not included in this calculation unless the organization solicited or used the contributions for the purpose of furthering commercial activities." The court concluded that the plaintiff had failed to prove that the church received business income of $500,000 or more.

    In conclusion, the plaintiff "failed to prove two of the three essential elements of enterprise coverage with respect to which he has the burden of proof," and therefore the FLSA "does not cover the church as an enterprise engaged in commerce or in the production of goods for commerce."

    individual coverage

    The FLSA requires that an employer pay minimum wages and an overtime wage of not less than one-and-a-half times the regular rate for hours worked in excess of 40 hours in a single work week if an employee is engaged in commerce or in the production of goods for commerce. This is commonly referred to as "individual" coverage. The court noted that the FLSA can cover an employee "engaged in commerce or in the production of goods for commerce" regardless of whether the employer constitutes an enterprise.

    The DOL provides custodial employees with a specific ground for individual coverage where the employee "performs maintenance and custodial work on the machinery, equipment, or premises where goods regularly are produced for commerce or from which goods are regularly shipped in interstate commerce." 29 C.F.R. § 779.116.

    The plaintiff compared himself to the plaintiff in the Boekemeier case (summarized above) where the court found that the employee-custodian engaged in commerce by ordering cleaning supplies and equipment one to six times a year from out-of-state vendors by telephone and fax on behalf of the employer-church. The court reasoned that the employee purchased goods "important" to the employer in a "recurrent and frequent" manner.

    The court conceded that the plaintiff purchased cleaning supplies in a recurrent and frequent manner, and regularly contacted (by telephone) electrical, plumbing, and oil vendors, paid for their services, and received reimbursement from the church. However, unlike the church custodian in the Boekemeier case, he did so exclusively from in-state vendors. The Boekemeier case "is distinguishable from this case because the employee was closely related to the movement of commerce by purchasing goods directly from out-of-state vendors, while [the plaintiff in this case] simply affected commerce by purchasing goods from local vendors."

    The court conceded that the plaintiff delivered mail to the post office on a regular and recurrent basis. But, it noted that DOL regulations "make clear that this activity must be of an interstate nature to establish individual coverage." 29 C.F.R. § 779.102. There was no evidence in this case "that mail delivered by the plaintiff to the post office was of an interstate nature."

    What this means for churches

    This case is important because it is one of the most extended discussions of the application of the FLSA minimum wage and overtime requirements to a church employee. Few churches will meet the FLSA's definition of enterprise coverage. But of greater relevance is the court's interpretation of "individual" coverage. The court's conclusion that church custodians who order janitorial supplies from in-state vendors by phone or the mail are not "engaged in commerce" will make it more difficult for church employees to pursue a claim for minimum wage or overtime pay under the FLSA. Note, however, that such claims may be more likely to succeed under state employment laws. Locke v. St. Augustine's Church, 690 F.Supp.2d 77 (E.D.N.Y, 2010). See also "Compensation," Tarasi v. Jugis, 692 S.E.2d 194 (N.C. App. 2010), in the Legal Developments section of this website.

Catholic Archdiocese Not Held Responsible for Sexual Abuse

Federal court rules archdiocese not responsible for negligent hiring in sexual abuse case, based on no prior knowledge of wrongful act by priest.

Church Law and Tax Report

Catholic Archdiocese Not Held Responsible for Sexual Abuse

Federal court rules archdiocese not responsible for negligent hiring in sexual abuse case, based on no prior knowledge of wrongful act by priest.

Key point 10-04.2. Some courts have found churches not liable on the basis of negligent selection for the molestation of a minor by a church worker since the church exercised reasonable care in the selection of the worker.

Key point 10-09.2. Some courts have found churches not liable on the basis of negligent supervision for a worker’s acts of child molestation on the ground that the church exercised reasonable care in the supervision of the victim and of its own programs and activities.

Key point 10-18.2. Most courts have refused to hold denominational agencies liable for the acts of affiliated ministers and churches, either because of First Amendment considerations or because the relationship between the denominational agency and affiliated church or minister is too remote to support liability.

* A federal court in New York ruled that a Catholic archdiocese was not responsible on the basis of negligent hiring, supervision, or retention for the sexual misconduct of a priest, since it had no knowledge of prior wrongful acts. A Catholic priest asked a female parishioner (the “plaintiff”) if she had been sexually abused as a child. After the plaintiff told him that she had been abused, he informed her that he had helped other women with a history of abuse. In the course of three private “sessions” the priest engaged in various forms of sexual contact with the plaintiff as part of his “therapy” to help relieve her of the effects of the prior abuse. The plaintiff did not disclose this abuse until she began meeting with a therapist. The therapist promptly informed the victims’ assistance coordinator of the archdiocese of the plaintiff’s allegations. This was the first notice to the archdiocese of the plaintiff’s allegations concerning the priest, or of any other claims of sexual abuse made against him.

The plaintiff sued her church and the archdiocese (the “church defendants”), claiming that they were responsible on the basis of negligent hiring, supervision, and retention for the priest’s wrongful acts. The church defendants asked the court to dismiss the plaintiff’s lawsuit on the ground that there was no evidence that they were aware of the priest’s alleged propensity to commit sexual abuse.

The court began its opinion by noting:

Under New York law, a claim for negligent hiring, supervision or retention … requires a plaintiff to show: (1) that the [person causing injury to another] and the defendant were in an employee-employer relationship; (2) that the employer knew or should have known of the employee’s propensity for the conduct which caused the injury prior to the injury’s occurrence; and, (3) that the injury was committed on the employer’s premises or with the employer’s property …. A cause of action for negligent hiring or retention requires allegations that the employer failed to investigate a prospective employee notwithstanding knowledge of facts that would lead a reasonably prudent person to investigate that prospective employee.

The plaintiff insisted that the church defendants failed to conduct any investigation into the priest’s background, and failed to instruct him not to touch females. The court responded that the plaintiff was missing the point:

The defendants had no duty to investigate the priest, or to warn him not to sexually abuse parishioners, when they had no reason to believe that he would engage in such misconduct. Under New York law, there is no common-law duty to institute specific procedures for hiring employees unless the employer knows of facts that would lead a reasonably prudent person to investigate the prospective employee.

The court, in ruling that the church defendants had no knowledge of the priest’s propensity to engage in sexual misconduct, concluded: “While the defendants had offered evidence that they were unaware of [the priest’s] prior sexual misconduct, the plaintiff failed to counter with admissible evidence from which a reasonable juror could infer that the defendants, at any time prior to the relevant incident, knew or should have known of his propensity to engage in inappropriate sexual conduct.”

The lawsuit alleged that the preschool director approved the perpetrator’s enrollment in the preschool, despite being informed that he “had been sexually abused and had a history of acting-out sexually with other children.”

Application. This case is important because it illustrates the general principle, recognized by many courts, that an employer can be liable on the basis of negligent hiring or retention for the sexual misconduct of an employee only if it knew, or should have known of, the employee’s propensity to commit such acts and yet failed to investigate further. Bouchard v. New York Archdiocese, 719 F.Supp.2d 255 (S.D.N.Y. 2010).

Neutral Principle of Law Applied to Church Property Dispute

In many cases, a court may resolve a dispute over church property.

Church Law & Tax Report

Neutral Principle of Law Applied to Church Property Dispute

In many cases, a court may resolve a dispute over church property.

Key point 7-03.3. Most courts apply the “neutral principles of law” rule in resolving disputes over the ownership and control of property in “hierarchical” churches. Under this rule, the civil courts apply neutral principles of law, involving no inquiry into church doctrine, in resolving church property disputes. Generally, this means applying neutral legal principles to nondoctrinal language in any one or more of the following documents: (1) deeds to church property; (2) a church’s corporate charter; (3) a state law addressing the resolution of church property disputes; (4) church bylaws; or (5) a parent denomination’s bylaws.

Key point 7-04. Churches and denominational agencies can avoid church property disputes by adopting appropriate nondoctrinal language in deeds, trusts, local church bylaws, or denominational bylaws.

A New York court ruled that the property of a church that seceded from the Presbyterian Church U.S.A. was held in trust for the benefit of the national church, and therefore the seceding church had no further legal right of ownership or possession. In 1979, the United States Supreme Court issued a ruling pertaining to church property disputes, in which it ruled that a state is “constitutionally entitled to adopt neutral principles of law as a means of adjudicating a church property dispute.” Jones v. Wolf, 443 U.S. 595 (1979). In discussing the benefits of a “neutral principles of law” approach, the Supreme Court observed that “through appropriate reversionary clauses and trust provisions, religious societies can specify what is to happen to church property in the event of a particular contingency, or what religious body will determine the ownership in the event of a schism or doctrinal controversy. In this manner, a religious organization can ensure that a dispute over the ownership of church property will be resolved in accord with the desires of the members.”

In response to the Jones ruling, the predecessor to the Presbyterian Church (U.S.A.) (“PCUSA”) adopted the following provisions in its Book of Order:

G-8.0201 Property Is Held in Trust. All property held by or for a particular church, a presbytery, a synod, the General Assembly, or the Presbyterian Church (U.S.A.), whether legal title is lodged in a corporation, a trustee or trustees, or an unincorporated association, and whether the property is used in programs of a particular church or of a more inclusive governing body or retained for the production of income, is held in trust nevertheless for the use and benefit of the Presbyterian Church (U.S.A.).

G-8.0301 Property Used Contrary to Constitution. Whenever property of, or held for, a particular church of the Presbyterian Church (U.S.A.) ceases to be used by that church as a particular church of the Presbyterian Church (U.S.A.) in accordance with the Constitution, such property shall be held, used, applied, transferred, or sold as provided by the presbytery.

A church was established in 1792 and affiliated with a predecessor to the PCUSA in 1815. In or about 2005, the church informed its local presbytery that it was disassociating itself from PCUSA “for reasons too numerous to be listed.” The letter further stated that:

We leave with only that which is ours—what we have bought and paid for without your help. We do not ask for an accounting or that you return to us what we have given in support of the denomination, but rather will rely on our Lord to supply all our needs according to His riches in Christ Jesus. We have determined that our property, real and personal, belongs to [our local congregation] and will continue to be used for the work which Christ Jesus has appointed for us. All sources that we have reviewed indicates that all right, title and interest belongs to us—the Scriptures, which are the only rule for faith and practice, the Confessions, our Certificate of Incorporation, and the Laws of the State of New York. We find no trust, express or implied. Such a trust would be contrary to the Scriptures and Confessions. We have reviewed reports of title and have obtained a legal opinion that we are vested with title. We have arranged for the defense of our title and a counterclaim for damages should that prove necessary, though we pray that such will not be necessary, reminding you of the injunction in 1 Corinthians 6:1-20.

The local presbytery responded to this secession letter by informing the church that “the Book of Order of our denomination is very clear about the property of a particular church that ceases to be part of the Presbyterian Church (U.S.A.), stating ‘such property shall be held, used, applied, transferred, or sold by the presbytery.’ That being the case, I remind you that the session of your church, individually and collectively, is responsible for preserving the church’s assets, making no unusual transfers or expenditures, until the presbytery’s control of the assets is actualized either by the session’s agreement or by court decision.”

The presbytery filed a request for a declaratory judgment with a local court in which it asked the court to declare that all of the secessionist church’s assets were held in trust for the presbytery pursuant to the trust provisions contained in the Book of Order. The court denied the requested relief, concluding that local Presbyterian churches owned their property free and clear of any provisions in the Book of Order. The presbytery appealed.

A state appellate court noted that the PCUSA, by adopting the canons in its Book of Order addressing local church property, “employed the means discussed by the United States Supreme Court in Jones v. Wolf [quoted above] to ensure that church property was held in trust on its behalf by adding an express trust provision to its constitution.” The court added that “contrary to the church’s suggestion, nowhere does the United States Supreme Court indicate that the deeds to the property were required to be amended in order to reflect a trust provision. On the contrary, the Court specifically stated that adding a trust provision to the denomination’s constitution was an alternative to amending deeds or corporate charters.” The court explained:

The presbytery presented several additional provisions of the Book of Order that indicated that local churches were not authorized to act with respect to the property in their possession in whatever manner they saw fit. Sections G-8.0501 and G-8.0502 required local churches to obtain the permission of the presbytery prior to selling, encumbering or leasing any church property. Furthermore, section G-8.0601 placed the power to determine which faction would retain church property in the event of a schism in the membership of a particular church in the hands of the presbytery. These additional provisions are further proof that the PCUSA’s constitution expressly provided that all church property in the possession of local churches remained under the ultimate care and control of the presbytery.

So long as a civil court can resolve such a dispute by referring to neutral provisions in these documents, without any inquiry into doctrine or polity, it may do so.

The court found it relevant that throughout the church’s existence it “conducted its affairs in accordance with the PCUSA’s constitution and was an integral member of its polity,” thereby “lending additional support to the finding that an implied trust was created.”

Application. The court correctly noted that most church property disputes are resolved on the basis of neutral principles of law contained in deeds, local church charters and bylaws, and denominational bylaws. So long as a civil court can resolve such a dispute by referring to neutral provisions in these documents, without any inquiry into doctrine or polity, it may do so. It is worth observing that the Supreme Court has noted that one of the principal advantages of the neutral principles of law approach to resolving church property disputes is that it permits religious organizations to “order their affairs” in advance of a property dispute through “appropriate reversionary clauses and trust provisions” that could reflect the intentions of a church and its members. Many churches and denominational agencies have done so. Several examples are cited in section 7-04 of Richard Hammar’s four-volume treatise, Pastor, Church & Law (4th ed. 2008). Presbytery v. Trustees, 895 N.Y.S.2d 417 (N.Y.A.D. 2010).

This Recent Development first appeared in Church Law & Tax Report, May/June 2011.

Are Churches and Affiliated Organizations Separate Entities?

A church and its affiliate may be considered a “single employer.”

Church Law & Tax Report

Are Churches and Affiliated Organizations Separate Entities?

A church and its affiliate may be considered a “single employer.”

Key point. There are several legal defenses available to a denominational agency that is sued as a result of the acts or obligations of affiliated clergy and churches. These include a lack of temporal control over clergy and churches; a lack of official notice of a minister’s prior wrongdoing in accordance with the denomination’s governing documents; lack of an agency relationship; the prohibition by the First Amendment of any attempt by the civil courts to impose liability on religious organizations in a way that would threaten or alter their polity; and elimination or modification of the principle of joint and several liability.

A New York court ruled that a church and an affiliated education center could be treated as a “single employer,” and therefore the church was jointly liable for the acts and obligations of the center. A church operated an “educational center” through which it conducted a summer camp for children. Two adolescent males (the “plaintiffs”) who worked at the camp claimed that they were sexually abused by an adult camp worker, and they sued the church for injuries they allegedly sustained.

The lawsuit referred to the church and its education center as one entity. The church asked the court to dismiss it from the case on the ground that it was a legally separate entity from the education center and as a result was not responsible for the plaintiffs’ injuries. It pointed out that:

However, the church’s pastor acknowledged that:

Was the church responsible for the actions of an employee of its affiliate? The court observed:

To determine whether separate entities should be considered a “single employer” for liability purposes, courts have employed a four-factor test that examines the interrelation of operations, common management, centralized control of labor relations and common ownership. [Also] relevant are the use of common office facilities and equipment and family connections between or among the various enterprises … and ultimately single employer status depends on all the circumstances of the case and is characterized by absence of an arm’s length relationship found among unintegrated companies.

The court concluded that there was sufficient evidence that the church and education center were a “single employer” and as a result it rejected the church’s request to dismiss it from the case. It concluded:

Although the church and center are not commercial enterprises, the allegations of the complaint and the affidavits submitted showing, among other factors, control by the church pastor of the operations of the center and asserting grossly improper activity on the part of the perpetrator in his relationship with the very young plaintiffs working under his supervision, raise a triable issue of fact as to whether the church and the center should be considered an integral enterprise for the purposes of liability for the various claims asserted herein.

Application. Many churches operate affiliated entities. Common examples include schools and preschools. In some cases church leaders separately incorporate an affiliated entity in order to protect the church from liability for the acts and obligations of the affiliate and its employees. Unfortunately, such arrangements often do not work because the church fails to divest itself of control over the affiliate. As this case illustrates, the courts sometimes conclude that the church and its affiliate comprise a “single employer” for liability purposes, despite the fact that the affiliate is separately incorporated.

One of the first courts to recognize this theory noted that “superficially distinct entities may be exposed to liability upon a finding they represent a single, integrated enterprise: a single employer.” Trevino v. Celanese Corp., 701 F.2d 397 (5th Cir. 1983). The court gave the following definition, which has since been applied by many other courts (including the New York court in the case addressed in this article):

Factors considered in determining whether distinct entities constitute an integrated enterprise are (1) interrelation of operations, (2) centralized control of labor relations, (3) common management, and (4) common ownership or financial control.

As this case illustrates, the mere fact that an affiliate is separately incorporated does not, by itself, preclude single employer status. This is so even if the two entities have separate officers. The court concluded that the several examples of interrelationship between the two entities (summarized above) were sufficient to overcome the church’s argument that it and the center were not a single employer. Nunez v. Mariners Temple Baptist Church, 2009 WL 3254510 (N.Y. Sup. 2009).

This Recent Development first appeared in Church Law & Tax Report, November/December 2010.

Liability for Playground Injuries

What churches can learn from ruling involving a school.

A New York court ruled that a school was not liable for injuries sustained by a five-year-old child who was injured when he fell from monkey bars in the school's playground during recess.

At the time of the accident, there were approximately 100 students on the playground with six teachers' aides to supervise them. One teacher's aide was specifically assigned to supervise the monkey bars upon which the victim was playing at the time of the accident. The victim's parents sued the school, claiming that their child's injuries were attributable to the school's negligent supervision of the children on the playground and in permitting the victim to use playground equipment that was inappropriate for a five-year-old.

The school asked the trial court to dismiss the case, but the court ruled that there was sufficient evidence of negligence to let the case proceed to trial. The school appealed, and a state appeals court reversed the trial court's ruling and dismissed the case.

The appeals court began its opinion by noting that "schools have a duty to adequately supervise students in their charge and will be held liable for foreseeable injuries proximately related to the absence of adequate supervision." It concluded, however, that there was so little evidence of negligent supervision that the case had to be dismissed. It concluded that the school 'demonstrated that it provided adequate supervision during recess and, in any event, that the accident occurred in such a manner that it could not reasonably have been prevented by closer monitoring, thereby negating any alleged lack of supervision as the proximate cause of the victim's injuries."

The court also noted that the school had submitted evidence demonstrating that the playground equipment was appropriate for the victim's age group, and was not defective.

What This Means for Churches. Generally speaking, a church may be legally responsible on the basis of negligent supervision for injuries resulting from a failure to exercise adequate supervision of its programs and activities.

However, as this case illustrates, churches, like schools, are not "guarantors" of the safety of children on their premises. They have a duty of using reasonable care in the supervision of activities in which children are engaged. So long as they exercise reasonable care, they will not be negligent and therefore they will not be responsible for injuries occurring to children.

In this case, the court concluded that the school had provided adequate supervision of the children participating in recess on the school playground, and therefore it was not responsible for the victim's injury. Troiani v. White Plains City School District, 882 N.Y.S.2d 519 (N.Y. App. 2009).

This Recent Development appeared in the March/April 2010 edition of Church Law & Tax Report.

Former Music Director’s Defamation Claim Dismissed

Truth is nearly always a defense to defamation.

Church Law & Tax Report

Former Music Director’s Defamation Claim Dismissed

Truth is nearly always a defense to defamation.

Key Point 4-02.03. A number of defenses are available to one accused of defamation. These include truth, statements made in the course of judicial proceedings, consent, and self-defense. In addition, statements made to church members about a matter of common interest to members are protected by a “qualified privilege,” meaning that they cannot be defamatory unless they are made with malice. In this context, malice means that the person making the statements knew that they were false or made them with a reckless disregard as to their truth or falsity. This privilege will not apply if the statements are made to nonmembers.

A New York court ruled that a church did not defame a former music director by informing the staff and congregation that he had been dismissed as a result of a false statement in his resume that he had an earned doctorate from the Eastman School of Music. In 2006, a church began a search for an Interim Director of Music. A man (the “plaintiff”) applied for the open position, indicating to the church in both a cover letter and resume that he had earned a doctorate degree from the Eastman School of Music and had completed “post-doctoral” studies at several prestigious institutions. After multiple communications with church leaders, the plaintiff was hired as the church’s Interim Director of Music and church organist.

Three months later, the church began inquiry into plaintiff’s academic credentials after church leaders became aware that plaintiff had not been awarded a doctorate degree and was using the title of “Doctor” inappropriately. Further investigation, culminating with verification from the Eastman School of Music, confirmed that plaintiff, who had satisfied many of the performance requirements leading to the doctorate degree, was never actually awarded the degree because he had not yet passed the oral portion of his doctoral qualifying examinations. Church leaders also learned that plaintiff had been previously cautioned by the Eastman School against using the title “Doctor” prior to conferral of the actual degree.

After affording plaintiff an opportunity to explain the apparent academic misrepresentation, a decision was made to terminate his employment. Shortly thereafter, the church’s senior pastor generated two emails about the change in staff which he sent to the church staff and members of the church choir. The email contained the following statements:

Following our second service of worship yesterday, it became my responsibility to dismiss [the plaintiff] as Interim Choir Director and organist. The action was the result of a failure to reach satisfaction between the Personnel Committee and [the plaintiff] with regard to his academic qualifications and the apparent accuracy of the degree listed in his resume …. The resulting lack of credibility and trust toward [the plaintiff] caused by this matter has rippled through the staff, the sanctuary choir and beyond. I trust you will hold the music ministry of [the church] and all of us, in your thoughts and prayers.

The following week, the church issued the following statement about plaintiff to the entire church congregation in its weekly newsletter:

This past Sunday [the plaintiff] was dismissed as Interim Choir Director and organist. This action was taken with the concurrence of the personnel committee after it learned that the representation on his resume that [the plaintiff] had completed his [doctoral degree] was inaccurate. We appreciate [the plaintiff’s] energy and contributions to our music ministry since last December. In the coming weeks, guest choir directors and organists will assist our choir in our upcoming services. Your prayers are sincerely requested for our music ministry, choir members, and our church’s staff at this challenging time.

A few months following these communications, the plaintiff sued the church and senior pastor for defamation. The court began its opinion by noting that defamation consists of (1) a false statement about another; (2) that is communicated to others without privilege or authorization; and (3) that causes injury to the other’s reputation. The court noted:

The plaintiff faces several insurmountable obstacles that required a dismissal of his claims. The “largest obstacle by far, is that the statements made by defendants with respect to plaintiff’s apparent misrepresentation of his academic credentials are true …. Plaintiff was never actually awarded a [doctoral degree] by the Eastman School of Music and as such, did not hold that degree when he applied to the church for the position of Interim Director of Music. This simple truth acts as an absolute defense to plaintiff’s claims of defamation with respect to the statements made by defendants about plaintiff’s misrepresented education credentials.

The court also ruled that the statements made by the pastor concerning plaintiff’s academic credentials “are protected by a qualified privilege, which exists because the statement was made to the church staff, the music staff and choir, and the congregation. All of these individuals share a common interest in that they are entitled to know the about the circumstances surrounding plaintiff’s dismissal.” As a result, the statements could not be defamatory without proof that they were made with malice. In this context, malice means that the pastor knew that the statements he made regarding the plaintiff’s academic credentials were false, or he made them with a reckless disregard as to their truthfulness.

Application. This case is instructive for the following reasons:

1. It illustrates the potential for fraud in job applications and resumes. According to some surveys, the most common misrepresentations on job applications and resumes pertain to education (i.e., school attended, degrees earned). Many churches now routinely conduct criminal background checks on new employees, but checking an applicant’s educational background is less common. As this case illustrates, this can result in hiring decisions being made on the basis of incorrect information.

2. It illustrates the cardinal rule that truth is an absolute defense to defamation.

3. It illustrates the concept of qualified privilege. According to this widely-recognized legal principle, statements made by church leaders to members regarding matters of common interest generally cannot be defamatory unless made with “malice.” Malice in this context means that the person making the statements knew they were false, or made them with a reckless disregard as to their truthfulness. Malice is very difficult to prove, and this means that churches have significant protection when communicating with members regarding matters of common interest.

Many courts, however, have explicitly limited this privilege to communications that are made to church members. The court in this case applied the qualified privilege to statements made to the staff, choir, and “congregation,” with no indication of whether church membership was required.

Church leaders wanting to preserve the qualified privilege defense when communicating matters of common interest to the congregation should take steps to ensure that their statements are directed exclusively to members. Be sure to consult with legal counsel before making any communication that is potentially damaging to any one or more persons. 2008 WL 5781051 (N.Y. App. 2008).

This Recent Development first appeared in Church Law & Tax Report, September/October 2009.

Fiduciary Duty and Legal Liability

Breach of fiduciary duty is difficult to prove in court.

Church Law & Tax Report

Fiduciary Duty and Legal Liability

Breach of fiduciary duty is difficult to prove in court.

Key Point. Under some circumstances ministers may owe a fiduciary duty to members of their congregation, and they may be liable for breaching this duty. Most cases of fiduciary duty involve sexual misconduct, but this basis of liability is not limited to such cases.

Key Point. Intentional infliction of emotional distress is a theory of liability that involves extreme and outrageous conduct. Plaintiffs rarely establish this theory of liability because of the difficulty of proving that a defendant’s actions were outrageous.

A New York court ruled that a pastor who allegedly disseminated information about a member’s criminal record to both staff and congregants did not breach any fiduciary duty or commit intentional infliction of emotional distress. A woman (the “plaintiff”) was an active member of her church. Because of her background in psychiatry, the church’s senior pastor sought advice from her on both church and personal matters, and it was during these private conversations that the plaintiff claims she shared information concerning her personal life, and her strategies for dealing with her own personal challenges. She characterized the pastor as her “friend, confidant, as well as [her] pastor and spiritual counselor.”

Plaintiff was charged with a property crime, and during the two-year course of her criminal proceeding, the pastor counseled her and attended court with her in his capacity as friend and pastor. The plaintiff was convicted of the crime. A few years later, she began alleging mismanagement of church funds by the pastor, and it was at this time that copies of her conviction record began circulating among the church staff and congregation in what the plaintiff claimed was a deliberate attempt to humiliate her and intimidate her from further criticism of the pastor’s management of the church. She sued the pastor, claiming that he was responsible for intentionally disseminating the information. The lawsuit claimed that the pastor’s disclosures amounted to a breach of a fiduciary duty, and caused her emotional distress.

Breach of fiduciary duty claim

The plaintiff claimed that the pastor breached a fiduciary duty that he owed to her by intentionally disseminating information about her criminal conviction that he learned in his role as her pastor and counselor. The court reached the following conclusions regarding this claim:

The court concluded that even if the pastor had disseminated information about her criminal conviction to the church staff and congregation, this fell far short of demonstrating that she “became uniquely vulnerable and incapable of self protection as a result of her relationship with him.” The court further noted that the criminal record allegedly disseminated by the pastor was a matter of public record. As a result, the court dismissed this theory of liability.

Emotional distress

The court noted that liability for the intentional infliction of emotional distress requires a demonstration that a defendant’s conduct was (1) extreme and outrageous, (2) intended to cause severe emotional distress, (3) resulted in severe emotional distress. As such, “success turns on whether the conduct complained of is extreme, amounting to more than mere threats or annoyances, and ultimately, so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious and utterly intolerable in a civilized community.”

The court added that “the threshold of outrageousness is so difficult to attain, that of the intentional infliction of emotional distress claims considered by the [state’s highest court] every one has failed because the alleged conduct was not sufficiently outrageous.”

The court concluded that the pastor’s conduct in disseminating information concerning the plaintiff’s criminal conviction fell far short of this standard: “By far, the most problematic obstacle is the simple fact that the document distributed here, plaintiff’s criminal record, is a public document. The distribution of this record while perhaps embarrassing, on its own carries no constitutional right to privacy …. One’s criminal history is arguably not a private personal matter at all, since arrest and conviction records are matters of public record.”

The court also noted that the pastor’s involvement in the dissemination of the plaintiff’s criminal record had never been conclusively proven. Plaintiff testified that she did not know who had obtained her criminal record, or who had distributed the copies.

Application. This case illustrates the difficulty of proving breach of fiduciary duty, or intentional infliction of emotional distress, by a pastor. These theories of liability are even harder to establish when they involve the dissemination of matters of public record such as a criminal conviction. 863 N.Y.S.2d 874 (N.Y. Sup. 2008).

This Recent Development first appeared in Church Law & Tax Report, July/August 2009.

When Can Members Inspect Church Records?

Know how to respond when a member of your church asks for access to your records.


Key point 6-03.1. Church members generally have no right to inspect church records unless such a right is conferred by state nonprofit corporation law, a church's charter or bylaws, state securities law (if the church has issued securities), or a subpoena. Church records enjoy no privilege against disclosure, with the exception of documents that are protected by the clergy-penitent privilege under state law.

A New York court ruled that a church member had the legal authority to inspect church records despite the pastor's refusal to allow him to do so.

Most church leaders are not sure how to respond when a member asks to inspect church records. Do members have a legal right to have access to church records? If so, under what conditions? Are there exceptions? These are very relevant and important questions for which church leaders should have answers. A recent New York case addresses these issues and provides helpful guidance.

A church member (and former church officer) suspected that the senior pastor and several current church trustees diverted or misappropriated church funds. When his request to inspect church financial records was denied, he sued the church citing a provision in the state nonprofit corporation law authorizing members of nonprofit corporations to inspect specified corporate records.

The New York nonprofit corporation law contains the following language regarding the inspection of records:

Except as otherwise provided herein, every corporation shall keep, at the office of the corporation, correct and complete books and records of account and minutes of the proceedings of its members, board and executive committee, if any, and shall keep at such office or at the office of its transfer agent or registrar in this state, a list or record containing the names and addresses of all members, the class or classes of membership or capital certificates and the number of capital certificates held by each and the dates when they respectively became the holders of record thereof. A corporation may keep its books and records of account in an office of the corporation without the state, as specified in its certificate of incorporation. Any of the foregoing books, minutes and records may be in written form or in any other form capable of being converted into written form within a reasonable time. Any person who shall have been a member of record of a corporation for at least six months immediately preceding his demand … upon at least five days written demand shall have the right to examine in person or by agent or attorney, during usual business hours, its minutes of the proceedings of its members and list or record of members and to make extracts therefrom.

A trial court rejected the member's request to inspect corporate records, and the case was appealed. A state appeals court ruled that the member did have the right to inspect the church's financial records as a result of the above-quoted statute. It observed: "Not-For-Profit Corporation Law § 621 authorizes any person who is a member of a not-for-profit corporation for at least six months immediately preceding an unsuccessful demand to inspect the corporation's books and records to commence a special proceeding to compel the production of those books and records …. Contrary to the [trial court's] determination, the issue of whether the plaintiff, who seeks to enforce a statutory right, is entitled to the production of the church's books and records, can be determined by resort to neutral principles of law" involving no inquiry into church doctrine.

What this means for churches

This case provides church leaders with some useful insights into the meaning of state nonprofit corporation laws that give members a limited right to inspect corporate records. Consider the following:

Tae Hwa Yoon v. New York Hahn Wolee Church, Inc. 870 N.Y.S.2d 42 (N.Y.A.D. 2008).

Can Opinions Be Defamatory?

Former music director sues church for defamation after his dismissal.

Church Law & Tax Report

Can Opinions Be Defamatory?

Former music director sues church for defamation after his dismissal.

Key point. Defamation consists of (1) oral or written statements about another person; (2) that are false; (3) that are “published” (that is, communicated to other persons); and (4) that injure the other person’s reputation.

A New York court ruled that a pastor did not defame his church’s music director by stating that he had been dismissed due to a “lack of credibility.” Church leaders dismissed the church’s music director after discovering that he had misrepresented his academic credentials at the time of his employment. The senior pastor of the church informed church staff and choir members that the “resulting lack of credibility and trust toward [the music director] caused by this matter has rippled through [the church and choir].” The dismissed music director sued the pastor and church for defamation. The court dismissed the lawsuit, noting that the pastor’s comments were “an expression of opinion” and therefore could not be defamatory.

Application. Defamation consists of a false statement about another that is publicized and injures the victim’s reputation. Since opinions cannot be “false,” they generally cannot be defamatory. Hamrick v. Perdue, 2008 WL 5214647 (N.Y.A.D. 2008).

This Recent Development first appeared in Church Law & Tax Report, March/April 2009.

Defenses to Discrimination Lawsuits

Know how to defend your ministry in the event of a discrimination lawsuit.

Church Law & Tax Report

Defenses to Discrimination Lawsuits

Know how to defend your ministry in the event of a discrimination lawsuit.

Key Point 8-12.8. Congress enacted the Religious Freedom Restoration Act to prevent the government from enacting any law or adopting any practice that substantially burdens the free exercise of religion unless the law or practice is supported by a compelling government interest. The compelling government interest requirement applies to any law, including neutral laws of general applicability. The objective of the Act was to repudiate the Supreme Court’s decision in the Smith case (1990) in which the Court ruled that neutral laws of general applicability that burden the free exercise of religion do not need to be supported by a compelling government interest in order to satisfy the First Amendment. In 1997, the Supreme Court ruled that the Act was unconstitutional. However, other courts have limited this ruling to state and local legislation, and have concluded that the Act continues to apply to federal laws.

A federal court in New York dismissed an age discrimination claim against a church, and based its conclusion on the federal Religious Freedom Restoration Act rather than the so-called ministerial exception. A minister was forced into retirement at age 70 by a policy of his denomination. The minister sued his church and a denominational official for violating a federal age discrimination law making it unlawful for any employer with 20 or more employees that is engaged in commerce to discriminate in any employment decision on the basis of the age of any person who is at least 40 years of age. The minister asserted that the mandatory retirement policy was a “secular” matter that was not influenced by any religious considerations. He acknowledged that most courts refuse to intervene in employment disputes between churches and clergy as a result of the so-called “ministerial exception” to employment laws, but he insisted that the ministerial exception “should not insulate a church’s non-religious regulations that discriminate against ministers on the basis of age.” A federal district court dismissed the lawsuit on the basis of the ministerial exception.

A federal appeals court ignored the ministerial exception and ruled that the lawsuit was barred by the federal Religious Freedom Restoration Act (RFRA). It noted that the ministerial exception “has no basis in statutory text, whereas RFRA, if applicable, is explicit legislation that could not be more on point. Given the absence of other relevant statutory language, the RFRA must be deemed the full expression of Congress’s intent with regard to the religion- related issues before us and displace earlier judge-made doctrines that might have been used to ameliorate the age discrimination law’s impact on religious organizations and activities.”

RFRA provides: “Government shall not substantially burden a person’s exercise of religion even if the burden results from a rule of general applicability … [unless] it demonstrates that application of the burden to the person is in furtherance of a compelling governmental interest, and is the least restrictive means of furthering that compelling governmental interest.” The court reasoned that RFRA was broad enough to apply to a minister’s lawsuit against a church “since it applies to all federal law and the implementation of that law.” This language “easily covers the present action.”

The court rejected the minister’s claim that RFRA is unconstitutional. It concluded that RFRA represents a constitutional exercise of congressional power as it applies to the federal government. The court remanded the case back to the district court for reconsideration based on RFRA.

The district court concluded that it was compelled by the appeals court’s ruling to apply RFRA, rather than the ministerial exception, in resolving the plaintiff’s age discrimination claim. It noted that the appeals court found RFRA to be “the full expression of Congress’s intent with regard to the religion-related issues before us and displaces earlier judge-made doctrines that might have been used to ameliorate the ADEA’s impact on religious organizations and activities,” including the ministerial exception.

The district court concluded that outcome in this case was the same whether RFRA or the ministerial exception was applied, even though the denomination allegedly had made an exception to its retirement policy in at least one prior case:

The fact that the defendants may have deviated from this policy on one occasion, does not detract from the principle that it must have the right to appoint ministers without interference from the civil courts. Thus, because application of the ADEA to the defendant’s mandatory retirement policy would interfere with its right to select its own clergy, it places a substantial burden on its right to manage its own internal affairs. This conclusion is supported by the “long line of Supreme Court cases that affirm the fundamental right of churches to ‘decide for themselves, free from state interference, matters of church government as well as those of faith and doctrine ….'” We cannot conceive how the federal judiciary could determine whether an employment decision concerning a minister was based on legitimate or illegitimate grounds without inserting ourselves into a realm where the Constitution forbids us to tread, the internal management of a church.

Application. Churches and denominations that are sued for discrimination under any federal employment law should cite both the ministerial exception and RFRA as defenses. Hankins v. The New York Annual Conference, 516 F.Supp.2d 225 (E.D.N.Y. 2007).

This Recent Development first appeared in Church Law & Tax Report, September/October 2008.

Woman Barred from Suing After Five-Year Sexual Relationship

A New York state law prevented the woman from suing the synagogue leader.

Church Law & Tax Report

Woman Barred from Suing After Five-Year Sexual Relationship

A New York state law prevented the woman from suing the synagogue leader.

Key Point 4-11.1. Clergy who engage in sexual contact with an adult or minor are subject to civil liability on the basis of several legal theories. They also are subject to criminal liability.

Key Point 4-11.02. Clergy who are sued for sexual misconduct may be able to assert one or more defenses.

A New York court ruled that a state law abolishing any remedy for alienation of affections and seduction barred a woman from suing a spiritual leader and counselor for damages she allegedly suffered as a result of a five-year sexual relationship. The founder and spiritual leader of a Jewish synagogue (the “defendant”) held himself out as a counselor and advisor with an expertise in women’s issues. A woman (the “plaintiff”) began attending services at the synagogue. The defendant advised her with respect to her personal, legal and financial problems, and represented that he would assist her in finding a husband so she would be able to marry and have children as she wished. The two eventually began a sexual relationship that lasted for five years.

The plaintiff alleged that she was induced by defendant to engage in this physical relationship “as part of a course of sexual therapy which he represented would lead to her achieving her goals of marriage and children.” He told her she was “closed to the possibility of finding a husband” and “would never find a husband in her current state.” He advised her “to permit him to have sexual intercourse with her so that her ‘life will open up and men will come’ to her.” He told her he “was as close to God as anyone could get,” and engaging in sexual relations with him would be her “only hope.” The relationship did not lead to the outcome the plaintiff desired. Rather, she claimed, the defendant “physically and emotionally abused [her] for his own sexual pleasure and gratification,” and warned that if she told anyone about their sexual relationship he “would have her placed in a straight jacket,” “have her put in the penitentiary,” and “would turn the community against her.”

The plaintiff sued the defendant for breach of fiduciary duty. Specifically, the plaintiff claimed that since the defendant held himself out as a counselor with an expertise in women’s issues, he “owed a fiduciary duty to [her] and a duty not to abuse their relationship of trust and confidence.” She also sued the defendant for emotional distress and her synagogue for negligent retention of the defendant. The court rejected the breach of fiduciary duty claim for two reasons.

First, a state law abolished all claims for alienation of affections and seduction and defined seduction as “any conduct on the part of a man, without the use of force, in wrongfully inducing a woman to surrender to his sexual desires.” The plaintiff’s claims “fall squarely within [this statute] whether couched as a claim for breach of fiduciary duty or intentional infliction of emotional distress.”

Second, the court noted that “the allegations that the defendant held himself out as a counselor and advisor with an expertise in women’s issues are merely general allegations; the mere giving of advice that is in turn accepted is not sufficient to create a fiduciary relationship …. While plaintiff asserts that defendant occupied a position as fiduciary as [her] counselor, advisor and therapist, there is no claim that he held himself out to be a professional counselor, that the parties had a professional relationship, that he was trained to be a therapist in any particular specialty or even that he was counseling her in a specific area. On the contrary, she claims that he counseled her with respect to her personal, legal and financial problems. That plaintiff may have succumbed to defendant’s persuasive power and may have been exploited by him for his own sexual gratification is insufficient to impose a legal duty on him, entitling plaintiff to the recovery of damages. She must allege more than her subjective belief in defendant’s rectitude and honesty.”

The court also dismissed the plaintiff’s claim of emotional distress on the ground that it was barred by the state law abolishing any recovery for alienation of affections or seduction. Marmelstein v. Kehillat New Hempstead, 841 N.Y.S.2d 493 (N.Y.A.D. 2007).

This Recent Development first appeared in Church Law & Tax Report, July/August 2008.

Church’s Application for Special Use Permit Denied

City refuses to allow a church to move into an area zoned for industrial use.

Church Law & Tax Report

Church’s Application for Special Use Permit Denied

City refuses to allow a church to move into an area zoned for industrial use.

Key Point 7-06.2. Some courts permit local zoning commissions to restrict the location of churches in residential areas.

A New York court affirmed a city’s decision to deny a church’s application for a special use permit that would have allowed it to relocate to an area of the city that was zoned exclusively for industrial use. A church entered into a contract to purchase property in an area of town that was zoned for industrial uses. The contract contained a contingency clause specifying that the contract was subject to the city issuing a special use permit to the church within 60 days authorizing the use of the property as a church. The city council denied the church’s application for a special use permit by a vote of 7 to 0 on the ground that the property was zoned for industrial rather than church purposes. The city zoning ordinance allowed churches in areas that were zoned residential, commercial, or manufacturing, but not industrial.

The court concluded that it was permissible for a city to balance “the presumed beneficial purpose of a church” in an industrial zone against public health, safety, welfare, and “other legitimate considerations” such as the economic benefit associated with the development of an industrial park. The city concluded that balance tipped in favor of preserving the exclusively industrial nature of the property the church had acquired. This was especially true in light of the fact that churches were permitted in every other zoning classification. Western New York Dist., Inc. of Wesleyan Church v. Village of Lancaster, 841 N.Y.S.2d 740 (N.Y. Sup. 2007).

This Recent Development first appeared in Church Law & Tax Report, July/August 2008.

Churches Not Liable for Safety of Students When They Leave Premises

Church’s duty to protect ends when a child leaves the physical custody of the church.

Church Law & Tax Report

Churches Not Liable for Safety of Students When They Leave Premises

Church’s duty to protect ends when a child leaves the physical custody of the church.

KEY POINT 10-11 A church may be legally responsible on the basis of negligent supervision for injuries resulting from a failure to exercise adequate supervision of its programs and activities.

* A New York court ruled that a school has no legal duty to protect students against criminal assaults after they leave school property, and as a result a school was not responsible for injuries suffered by a high school student who was assaulted by another student while on his way home. A 15- year-old high school student was on his way home from school when he was assaulted by a fellow student on a subway platform. The victim sued his school, claiming that it was negligent in failing to provide “adequate security and to protect students from foreseeable criminal activity.” The court noted that when physical custody and control over a child ceases because the child has “passed out of the orbit of its authority in such a way that the parent is perfectly free to reassume control over the child’s protection, the school’s custodial duty also ceases.” As a result, “when a student is injured off school premises, there can generally be no breach of a duty that extends only to the boundaries of school property. Under the circumstances of this case, the [school] may not be held liable for the plaintiff’s injuries.”

Application. This case is significant because it demonstrates that schools, and churches, are not necessarily responsible for injuries to minors that occur off of church property and outside the context of any official program or activity. The court concluded that the school’s duty to protect the plaintiff only extended “to the boundaries of school property.” Stagg v. City of New York, 833 N.Y.S.2d 188 (N.Y.A.D. 2007).

FMLA Requirements

A federal court in New York ruled that a church pension board did not violate the Americans with Disabilities Act of the Family and Medical Leave Act when it dismissed an HIV-positive employee.

Church Law & Tax Report

FMLA Requirements

A federal court in New York ruled that a church pension board did not violate the Americans with Disabilities Act of the Family and Medical Leave Act when it dismissed an HIV-positive employee.

Key point 8-10. The federal Americans with Disabilities Act prohibits employers with at least 15 employees, and that are engaged in interstate commerce, from discriminating in any employment decision against a qualified individual with a disability who is able, with or without reasonable accommodation from the employer, to perform the essential functions of the job. Accommodations that impose an undue hardship upon an employer are not required. Religious organizations may give preference to nondisabled members of their faith over disabled persons who are members of a different faith.

Key point 8-21. The federal Family and Medical Leave Act requires employers with 50 or more employees and engaged in interstate commerce to allow employees up to 12 weeks of unpaid leave each year on account of certain medical and family needs. There is no exemption for religious organizations.

* A federal court in New York ruled that a church pension board did not violate the Americans with Disabilities Act of the Family and Medical Leave Act when it dismissed an HIV-positive employee. A man (the “plaintiff”) was employed by a church pension board (the “defendant”). The defendant had many different employment-related policies, which were printed in an employee manual. These included policies pertaining to equal employment opportunity; punctuality and attendance; sick leave; FMLA; leaves of absence; grievance procedures; and disciplinary procedures. The defendant also provided a Health Insurance Portability and Accountability Act (” HIPPA” ) handbook as an appendix to the employee manual to advise employees of the issues regarding confidentiality and disclosure of health and medical information. The defendant claims to maintain a ” zero tolerance policy” for discrimination and harassment.

With regard to sick leave, the employee manual requires employees to call their supervisor prior to the beginning of each workday if they will be absent due to illness. Moreover, the manual specifically states: “An employee who fails to report to work for two consecutive days and fails to notify his or her supervisor of absence due to illness, shall be considered to have abandoned his/her position and will be discharged, unless there are extenuating circumstances satisfactory to the defendant.”

Although the plaintiff received the employee handbook, he stated that he never reviewed it. Despite not reading the handbook, the plaintiff conceded that he understood that if he was going to be absent from work, he was required to contact the office.

On January 27, 2004, plaintiff called the defendant to report that he would not be coming into work that day. He did the same on the following day. On January 29, 2004, defendant received a handwritten note from a physician stating that the plaintiff was under his care “for an exacerbation of chronic illness and has been unable to work since this past Monday. He will be able to return to work February 9, 2004.” The note did not specify the nature of the illness. According to the physician, the chronic illness to which the note referred was Human Immunodeficiency Virus (“HIV”), and the exacerbation was part of the typical progression of the disease. The plaintiff had begun treatment for HIV infection in 1998. In late January 2004, his HIV condition had worsened considerably. The physician further stated that by January of 2004 the plaintiff was exhibiting the most severe signs of anxiety and depression that he had exhibited in the previous six years. The source of this anxiety, the physician concluded, was the plaintiff’s fear of his disease process.

During plaintiff’s time out of work pursuant to his doctor’s note, the defendant made several attempts to contact him, all of which were unsuccessful. On February 5, the defendant learned that the plaintiff was in Costa Rica. The plaintiff did not report to work on February 9, 2004, nor did he contact defendant that day.

On February 10, the defendant terminated the plaintiff’s employment due to his failure to contact the defendant despite his ability to do so, and that the defendant had no facts, such as a doctor’s statement, indicating any medical reason for his absence. The defendant asserted that had there been timely medical documentation that plaintiff was absent on February 9 and 10 for medical reasons, he would not have been terminated. Plaintiff was informed by letter that the termination was for job abandonment and cited the employee manual. Before plaintiff, no other employee of the defendant had abandoned his job by failing to call or report to work for two straight days.

On February 11, 2004, the day after the decision to terminate him. the plaintiff contacted the defendant from Costa Rica by telephone. He stated that he had had a nervous breakdown, described some of his symptoms, and said that a doctor’s note would be forthcoming.

On March 1, 2004, the plaintiff’s physician examined him and concluded that plaintiff would have been unable to work on February 9 and February 10, and that he remained incapable of working. Consequently, the physician wrote another note excusing plaintiff from work. The note indicated that plaintiff was under his care “for chronic illness recently complicated by a nervous condition requiring psychiatric care” and that plaintiff was “unable to work until he becomes stable on appropriate medication.”

The plaintiff sued the defendant for discrimination based on disability in violation of the Americans with Disabilities Act, and a violation of the Family and Medical Leave Act (FMLA).

Americans with Disabilities Act

The court noted that an evaluation of a disability discrimination claim requires the following “burden shifting” analysis: The plaintiff bears the initial burden of proving that the employer engaged in the discriminatory practice. This can be done by direct evidence of discrimination, but more often it is done by showing “disparate treatment”—that is, the plaintiff was treated less favorably than other employees who were not members of a protected group. The courts have ruled that a plaintiff can meet the initial burden of proof by establishing a “prima facie case” of discrimination by a preponderance of the evidence. This is done by showing that (1) the plaintiff is a member of a class protected by the Americans with Disabilities Act; (2) the plaintiff suffered an adverse employment decision (such as not being hired if a job applicant, or being dismissed or disciplined if an employee); (3) a direct relationship exists between membership in the protected class and the adverse employment decision. If the plaintiff is successful in making out a prima facie case of discrimination, then a presumption of discrimination exists, and the burden shifts to the employer to show a legitimate, nondiscriminatory reason for the adverse employment decision. If the employer demonstrates a nondiscriminatory reason for the adverse employment action, then the presumption is rebutted and the plaintiff must prove that the nondiscriminatory reason was a pretext for discrimination.

The defendant conceded that the plaintiff had proven the first two elements of a prima facie case, but it vigorously challenged the third element (a direct connection existed between plaintiff’s HIV status and his termination). The defendant insisted that it had no knowledge that the plaintiff was HIV positive at the time it fired him. The court agreed that the defendant was unaware of the plaintiff’s illness, and noted that “at a minimum, the employer must have knowledge of the disability.” Similarly, the court ruled that the defendant was not aware that the plaintiff had a mental condition that was a disability.

But even if plaintiff had established a prima facie case, the court concluded that he had failed to demonstrate that the defendant’s reason for the termination was a “pretext” for what amounted to discrimination. It noted that the plaintiff’s actions “provided a reasonable basis to terminate his employment. His behavior was simply conduct which an employer could legitimately determine was inappropriate and unacceptable in the workplace. Plaintiff was terminated for violating company policy requiring an employee to call in to work if he or she was going to be absent for any reason. Certainly, an employer is entitled to discharge an employee who fails to follow company rules and fails to appear for work without notification, even if the absences are attributable to a medical problem. The record indicates that plaintiff was capable of complying with the call-in policy despite his alleged disability, especially in light of the fact that he was in daily telephone contact with his mother while in Costa Rica before his termination.”

In summary, the evidence disclosed “no connection between plaintiff’s alleged disabilities and his termination. The record contains no statement that plaintiff was terminated due to a disability, no comments were made to indicate a bias against HIV positive individuals or those suffering mental health impairments. Plaintiff has contended that defendant would have wanted to terminate him because of the costs associated with employing people with disabilities, however, no such cost considerations are contained in the record. Plaintiff has not established that defendant knew he had a qualifying disability, that the disability was the reason for his discharge or even actions to show a prior bias by defendant against individuals with disabilities. The failure to call in during audit time constituted an abandonment of his obligations as [an employee]. Moreover, he has not demonstrated that this policy was unevenly applied. To the contrary, plaintiff was the only person who ever failed to call or appear for work for two consecutive days. In short, he has failed to establish that the termination was due to discrimination based on disability status.”

FMLA

Under the FMLA, eligible employees are entitled to twelve weeks per year of unpaid leave “because of a serious health condition that makes the employee unable to perform the functions of the position of such employee.” At the conclusion of an employee’s FMLA leave, he is entitled to return to the same position or its equivalent. The FMLA allows employees to seek money damages against any employer that violates their FMLA rights. The plaintiff claimed that the defendant interfered with his FMLA rights.

The court noted that to state a claim for interference with FMLA rights, plaintiff must demonstrate that: (1) he was an eligible employee under the FMLA; (2) the defendant is an employer under the FMLA; (3) plaintiff was entitled to leave under the FMLA; (4) plaintiff gave notice to defendant of his intention to take leave; and (5) plaintiff was denied benefits to which he was entitled under the FMLA. The defendant asserted that plaintiff failed to prove the fourth and fifth elements of his interference claim (i.e., notice and denial of benefits).

The court noted that under FMLA, employees are required to provide, whenever possible, at least 30 days’ notice for leave that is foreseeable. However, where the need for leave has arisen unexpectedly, the regulations provide that:

(a) When the approximate timing of the need for leave is not foreseeable, an employee should give notice to the employer of the need for FMLA leave as soon as practicable under the facts and circumstances of the particular case. It is expected that an employee will give notice to the employer within no more than one or two working days of learning of the need for leave, except in extraordinary circumstances where such notice is not feasible. In the case of a medical emergency requiring leave because of an employee’s own serious health condition or to care for a family member with a serious health condition, written advance notice pursuant to an employer’s internal rules and procedures may not be required when FMLA leave is involved.

(b) The employee should provide notice to the employer either in person or by telephone, telegraph, facsimile (“fax”) machine or other electronic means. Notice may be given by the employee’s spokesperson (e.g., spouse, adult family member or other responsible party) if the employee is unable to do so personally. The employee need not expressly assert rights under the FMLA or even mention the FMLA, but may only state that leave is needed. The employer will be expected to obtain any additional required information through informal means. The employee or spokesperson will be expected to provide more information when it can readily be accomplished as a practical matter, taking into consideration the exigencies of the situation.

Employees seeking FMLA leave need not expressly invoke the FMLA in the notification to their employer; it is sufficient that they “give a basis for their leave that qualifies under the FMLA.” After the employee provides the required notice, “the burden shifts to the employer to inquire further if it needs further information to ascertain whether the leave is FMLA-qualifying.” The plaintiff insisted that his phone call to defendant on January 27, and his physician’s letter of January 29, constituted adequate notice under the FMLA. The court disagreed: “Merely calling in sick, as plaintiff did on January 27, is insufficient to put a company on notice that an employee is requesting leave that may be eligible under the FMLA. There is no evidence in the record that plaintiff provided any information in his calls that his absence was due to a condition that could be eligible for FMLA coverage. [His physician’s] letter was similarly vague, in that it stated that plaintiff was suffering from ‘an exacerbation of chronic illness’ and in any event stated that plaintiff would be able to return to work on February 9.” Finally, the court noted that communications that the plaintiff’s mother and sister made to the defendant did not constitute FMLA notice, since the FMLA regulations specify that a spokesperson for the employee may give notice on his behalf “only if the employee is unable to do so personally …. There is nothing in the record to suggest that plaintiff was unable to contact defendant himself; indeed, the record indicates that plaintiff was in fact able to do so. Thus, the statements of plaintiff’s mother and sister do not constitute adequate notice under the FMLA.” Brown v. The Pension Board, 488 F.Supp.2d 395 (S.D.N.Y. 2007).

* See also “Clergy—removal,” Leavy v. Congregation Beth Shalom, 490 F.Supp.2d 1011 (N.D. Iowa 2007), in the recent developments section of this newsletter.

Off-Property Injuries

A New York court ruled that a public high school cannot be liable for injuries occurring to students after they leave school property.

Church Law & Tax Report

Off-Property Injuries

A New York court ruled that a public high school cannot be liable for injuries occurring to students after they leave school property.

Key point 10-11. A church may be legally responsible on the basis of negligent supervision for injuries resulting from a failure to exercise adequate supervision of its programs and activities.

* A New York court ruled that a public high school cannot be liable for injuries occurring to students after they leave school property. A 15-year-old boy was on his way home from school when he was assaulted by a fellow high school student while exiting a subway. The boy’s parents sued the high school their son attended, as well as the board of education, claiming that they were negligent in failing to provide “adequate security and to protect students from foreseeable criminal activity.” In dismissing the parents’ lawsuit, the court observed: “A school’s duty is coextensive with, and concomitant with, its physical custody and control over a child. When that custody ceases because the child has passed out of the orbit of its authority in such a way that the parent is perfectly free to reassume control over the child’s protection, the school’s custodial duty also ceases. As a result, where a student is injured off school premises, there can generally be no [negligence, since a school’s duty of care] extends only to the boundaries of school property.”

Application. Many adolescents have been injured after leaving church property. A common example is a car accident involving a car containing one or more members of a church youth group. This case suggests that a church may not be liable for such injuries since the church’s duty of care extends only to its own property or, presumably, to off-campus church-sponsored activities. Note that this case represents a decision by a New York appellate court that may or may not be followed in other jurisdictions. Stagg v. City of New York, 833 N.Y.S.2d 188 (N.Y.A.D. 2007).

Risk of Injury on Church Property

A variety of defenses are available to a church that is sued as a result of an injury occurring on its premises.

Church Law & Tax Report

Risk of Injury on Church Property

A variety of defenses are available to a church that is sued as a result of an injury occurring on its premises.

Key point 7-20.4. A variety of defenses are available to a church that is sued as a result of an injury occurring on its premises.

* A New York court ruled that a boy who was injured when a large hole on a schoolyard basketball court caused him to fall and injure himself could not sue the school because the danger was open and obvious. Many churches have basketball courts or recreational equipment on their property that is used by neighborhood children during the week. Church leaders often are concerned about potential liability to the church for injuries that occur to minors using the church’s facilities, and wonder how this risk may be reduced or eliminated. Some wonder if the risk is too great to justify the use of recreational facilities. A recent case in New York is instructive. A 14-year-old boy was injured while playing basketball with several friends at a schoolyard owned by a public school. A hole in the surface of the basketball court caused him to fall. The boy estimated that the hole was two feet wide and two inches deep. He testified that he generally played basketball twice a week at one of several locations including the location where he was injured. He further testified that he had been playing basketball at the schoolyard where the injury occurred for approximately 40 minutes prior to the accident. The boy’s parents sued the school, claiming that it was responsible for their son’s injuries on the basis of negligence.

A trial court rejected the school’s request that the case be dismissed, and the school appealed. A state appeals court ruled that the trial court erred in not dismissing the case. It concluded: “A person who voluntarily participates in a sport or recreational activity is deemed to consent to those commonly appreciated risks which are inherent in and arise out of the nature of the sport generally and flow from such participation. This includes those risks associated with the construction of the playing surface and any open and obvious condition on it …. [The school established that it was entitled to have the case against it dismissed] by demonstrating that the victim voluntarily participated in the basketball game and that the hole in the surface of the court constituted an open and obvious condition.” Casey v. Garden City Park-New Hyde Park School District, 837 N.Y.S.2d 186 (N.Y.A.D. 2007).

Liability for Ex-Employees

Churches generally cannot be liable for the acts of employees that are committed in their own residences apart from an official church activity, or after the termination of their employment.

Church Law & Tax Report

Liability for Ex-Employees

Churches generally cannot be liable for the acts of employees that are committed in their own residences apart from an official church activity, or after the termination of their employment.

Key point. Churches generally cannot be liable for the acts of employees that are committed in their own residences apart from an official church activity, or after the termination of their employment.

* A New York court ruled that a church was not liable for the molestation of a young girl by a church’s youth pastor that occurred after his employment was terminated, and in his own home. A minor female was sexually molested by a youth pastor. She sued her church, claiming that it was responsible on the basis of negligent hiring, negligent retention, and negligent supervision for the youth pastor’s wrongful acts. A trial court dismissed the lawsuit, and a state appeals court affirmed this ruling. It concluded that the church could not be liable for the youth pastor’s acts since he was no longer employed by the church at the time he abused the victim. Further, the court pointed out that the abuse occurred in the youth pastor’s apartment, and so “there was no connection between his employment and the abuse of the plaintiff, as it was severed by time, place, and the intervening independent acts of the youth pastor.”

Application. This case is important for two reasons. First, it illustrates the general rule that a church is not liable for the acts of employees committed after the termination of their employment. Second, it demonstrates that a church generally is not liable for the acts of an employee committed in his or her own home, and unconnected to any official church activity. Farrell v. Maiello, 831 N.Y.S.2d 506 (N.Y.A.D. 2007).

* See also the feature article “Church Liability for the Sexual Molestation of Minors” in this newsletter.

Determining Church Property Ownership

Most church property disputes are resolved on the basis of neutral principles of law contained in deeds, local church charters and bylaws, and denominational bylaws.

Key point 7-03.3. Most courts apply the "neutral principles of law" rule in resolving disputes over the ownership and control of property in "hierarchical" churches. Under this rule, the civil courts apply neutral principles of law, involving no inquiry into church doctrine, in resolving church property disputes. Generally, this means applying neutral legal principles to nondoctrinal language in any one or more of the following documents: (1) deeds to church property; (2) a church's corporate charter; (3) a state law addressing the resolution of church property disputes; (4) church bylaws; or (5) a parent denomination's bylaws.

A New York court ruled that a local church retained ownership of its property following its disaffiliation from a parent denomination.

A church affiliated with the Presbyterian Church (U.S.A.) voted unanimously to disassociate from the parent denomination. A denominational agency (the "regional church") asked a court to declare that it was the lawful owner of the church's property including real estate, vehicles, investments, parishioner donations, furniture, ecclesiastical and sacramental items and church records and documents.

The court noted that it could resolve church property disputes without violating the First Amendment if it did so on the basis of neutral principles of law requiring no analysis of church doctrine. The court applied the following test announced by the New York Court of Appeals (the highest state court) in a previous case:

In applying neutral principles, the focus is on the language of the deeds, the terms of the deeds, the terms of the local church charter, the State statutes governing the holding of church property, and the provisions in the constitution of the general church concerning the ownership and control of church property. The court must determine from them whether there is any basis for a trust or similar restriction in favor of the general church, taking special care to scrutinize the documents in purely secular terms and not to rely on religious precepts in determining whether they indicate that the parties have intended to create a trust or restriction. First Presbyterian Church of Schenectady v. United Presbyterian Church in the United States of America, 476 N.Y.S.2d 86 (N.Y. 1984).

The court examined the deeds to the church's property and noted that none of them contained any language vesting a present or future interest in the favor of the regional or national church. However, in 1981 the national church amended its constitution (Book of Order) to create an express trust provision for congregational property. It states that all property held by a local church "is held in trust nevertheless for the use and benefit of the Presbyterian Church (U.S.A.)." It further provides, "Whenever property of, or held for, a particular church of the Presbyterian Church (U.S.A.) ceases to be used by that church as a particular church of the Presbyterian Church (U.S.A.) in accordance with this constitution, such property shall be held, used, applied, transferred, or sold as provided by the presbytery." Finally, under a provision entitled "Property of Church in Schism", the Book of Order provides that the relationship to the Presbyterian Church (U.S.A.) can only be severed by action by the presbytery.

The issue in this case, the court noted, was whether these provisions were binding on the church that voted to disassociate itself from the denomination. It concluded that they were not:

Only the owner of real property can convey an interest in the property; B can not create a future interest in A's property without A's consent …. In the absence of any language in the deed to [the church] indicating that title is held subject to the laws or discipline of the national church a change in the laws of the national church does not affect title to the property held by the local church. Moreover, when [the church] acquired the real property [the amendments to the Book of Order] did not exist.

The court distinguished several cases recognizing the legal validity of the so-called "Dennis Canon" adopted by the Episcopal Church in 1979. This canon specifically states that all real and personal property held by or for the benefit of a local parish or congregation is held in trust for the national church and the diocese in which the local church is located.

The New York court acknowledged that the courts have awarded title to the national Episcopal Church in several cases on the basis of this canon, but it stressed that the canon "codified a trust relationship which has implicitly existed between the local parishes and their dioceses throughout the history of the Protestant Episcopal Church."

Local churches, by accepting the principles of the Protestant Episcopal Church and the diocese, became subject to denominational canons, rules and practices. Such provisions "not only indicate that local church property was to be held for the benefit of the Protestant Episcopal Church and its dioceses, but they demonstrate the established customs of said church." In short, an implied trust was implicit in the polity of the Episcopal Church, but not the Presbyterian Church.

The national and regional churches argued that the local church was bound by the amendments to the Book of Order since it remained affiliated for 25 years after the amendments were adopted. The court disagreed, noting that "mere silence and continuing its membership in the denominational church, absent more, is an insufficient expression of an intent to create a trust."

What this means for churches

Most church property disputes are resolved on the basis of neutral principles of law contained in deeds, local church charters and bylaws, and denominational bylaws. So long as a civil court can resolve such a dispute by referring to neutral provisions in these documents, without any inquiry into doctrine or polity, it may do so.

The court in this case concluded that the local church had never ceded any control of its property to the national or regional churches in a deed, trust, or in its bylaws. Further, the church had never expressly recognized or adopted the amendments to the national church's Book of Order pertaining to church property, and therefore the national and regional churches had no claim to the church's property upon its withdrawal.

It is worth observing that the United States Supreme Court has noted that one of the principal advantages of the neutral principles of law approach to resolving church property disputes is that it permits religious organizations to "order their affairs" in advance of a property dispute through "appropriate reversionary clauses and trust provisions" that could reflect the intentions of a church and its members. Many churches and denominational agencies have done so. Several examples are cited in section 7-04 of Richard Hammar's, Pastor, Church & Law.

Presbytery v. Trustees of First Presbyterian Church, 821 N.Y.S.2d 834 (N.Y. App. 2006).

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