Carrollton Presbyterian Church v. Presbytery of S. La. of the Presbyterian Church (U.S.A.)

• Decision Date: 09 March 2015
• Docket Number: No. 2014 CA 1214.,2014 CA 1214.
• Citation: 172 So.3d 1
• Parties: CARROLLTON PRESBYTERIAN CHURCH v. The PRESBYTERY OF SOUTH LOUISIANA OF the PRESBYTERIAN CHURCH (U.S.A.).
• Court: Court of Appeal of Louisiana — District of US

172 So.3d 1

CARROLLTON PRESBYTERIAN CHURCH
v.
The PRESBYTERY OF SOUTH LOUISIANA OF the PRESBYTERIAN CHURCH (U.S.A.).

No. 2014 CA 1214.

Court of Appeal of Louisiana, First Circuit.

March 9, 2015.

172 So.3d 2

Lloyd J. Lunceford, Eugene R. Groves, Amy Groves Lowe, Baton Rouge, LA, for Appellee, Carrollton Presbyterian Church.

H. Alston Johnson, III, E. Wade Shows, Baton Rouge, LA, John A. Dunlap, Russell L. Foster, Harry M. Barton, New Orleans, LA, for Defendant/Appellant, The Presbytery of South Louisiana of the Presbyterian Church (U.S.A.).

Before GUIDRY, THERIOT, and DRAKE, JJ.

Opinion

DRAKE, J.

Appellant, the Presbytery of South Louisiana of the Presbyterian Church (U.S.A.), (“Presbytery”) appeals a judgment for sanctions against it in favor of Carrollton Presbyterian Church (“Carrollton”). Based on our review of the record, we affirm the trial court's judgment.

FACTS AND PROCEDURAL HISTORY

Carrollton first organized as a church in 1855, but membership declined due to the Civil War. In 1884, Carrollton reorganized, and thereafter, incorporated as a Louisiana corporation in 1894 with the right to buy and sell property. In 1983, the Presbyterian Church (U.S.A.) (“PCUSA”) was formed by the reunion of the United Presbyterian Church in the United States of America (northern branch) and

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the Presbyterian Church in the United States (southern branch) (“PCUS”). Prior to the reunification, Carrollton was established as place of worship in accordance with the “usages and doctrines” of the PCUS. The PCUSA is governed by representative bodies called, in order of rank, the lowest to the highest, “session, presbytery, synod, General Assembly.” The Book of Order sets forth the rules for the reunited church and its local members, Chapter 8 of the Book of Order contains the provisions of the church constitution governing property. Section G–8.0201 of the Book of Order contains the express trust provision:

All property held by or for a particular church ... 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 [PCUSA].

Section G–8.0501 of the Book of Order provides:

A particular church shall not sell, mortgage, or otherwise encumber any of its real property and it shall not acquire real property subject to an encumbrance or condition without the written permission of the presbytery transmitted through the session of the particular church.

Section G–8.0701 of the Book of Order permitted a local church within eight years of the reunification of the northern and southern churches in 1983 to opt out of the provisions of chapter 8 and provides:

The particular church voting to be so exempt shall hold title to its property and exercise its privileges of incorporation and property ownership under the provisions of the Constitution to which it was subject immediately prior to the establishment of the [PCUSA]. This paragraph may not be amended.

Carrollton timely exercised its right to opt out of chapter 8 as provided in G–8.0701 at a congregational meeting on July 8, 1984.

Prior to the reunion of the northern and southern branches of the Presbyterian Church, Carrollton was subject to the Book of Church Order (different from the Book of Order) of the southern branch, the PCUS, which provided in Section 6–8 that a local church did not need the consent or approval of any “church court above the level of the particular church in order to buy, sell or mortgage the property of that particular church.” On February 19, 2008, the Presbytery adopted a position statement “as the definitive statement on how this Presbytery interprets the Book of Order with respect to real property.” The position statement recognized:

[T]hat those churches which exercised the property exemption (G–8.0701) that was available in the eight-year window after reunion ... have the ability to buy, sell, lease, mortgage, or otherwise encumber any of their real property without further permission of the presbytery.

On March 27, 2008, Carrollton filed a Petition for Declaratory Judgment against the Presbytery, seeking a declaration that all property held by or for Carrollton was held without any trust in favor of a national denomination or any of its regional administrative units; that all property held or titled in Carrollton's name is held by it in full and exclusive ownership; and that neither the national denomination nor a regional administrative unit has any right, title or interest in said property nor the right to determine the ownership or disposition of said

property. Carrollton later amended its petition on February 13, 2009,

172 So.3d 4

to further seek injunctive relief restraining the Presbytery from filing any documents or otherwise taking any action to claim or assert ownership, use, or control over Carrollton's property or to assert any rights to Carrollton's property.

The underlying facts prompting the petitions and the ensuing proceedings in the trial court were discussed in Carrollton Presbyterian Church v. Presbytery of S. Louisiana of Presbyterian Church (USA), 11–0205 (La.App. 1 Cir. 9/14/11), 77 So.3d 975, 976–77, writ denied, 11–2590 (La.2/17/12), 82 So.3d 285, cert. denied, ––– U.S. ––––, 133 S.Ct. 150, 184 L.Ed.2d 32 (2012), as follows:

Over the course of years, Carrollton acquired property in its name, including the immovable property in New Orleans that is the site of Carrollton's sanctuary. Carrollton also sold property it held in its name. In recent years Carrollton's membership had declined, and there was some talk of Carrollton dissolving, although Carrollton did not formally petition to do so. Carrollton also began investigating a potential sale of its sanctuary property.

The declaratory judgment portion of this dispute raises the issue of whether Carrollton holds, in full and exclusive ownership, property held in its name, and therefore, may sell its property as it desires. The Presbytery maintains that Carrollton is subject to the Book of Order's express trust provision, which creates an express trust in church property in favor of the PCUSA. Carrollton argues that the trust provision of the Book of Order does not comply with Louisiana trust law and further contends that the provision is inapplicable here, as Carrollton timely exercised its option to exempt itself from the trust provision.

After Carrollton amended its petition, the district court granted a temporary restraining order (“TRO”) prohibiting the Presbytery from establishing an administrative commission to take jurisdiction over Carrollton's “session.”¹ After finding that Carrollton set forth a prima facie showing that it would prevail on the merits of the suit, the district court issued a preliminary injunction effective against the Presbytery and pertaining to all property held by or for Carrollton, enjoining the Presbytery from filing documents in the mortgage and conveyance records of Orleans Parish that would create a cloud on Carrollton's title to its property, or interfering with Carrollton's right to determine ownership, use, control, or disposition of its property. The preliminary injunction further enjoined the Presbytery from: changing the church locks; initiating disciplinary action against Carrollton's ministers or members in relation to the subject matter of this litigation; dissolving Carrollton or appointing or initiating processes leading to appointment of an administrative commission to assert jurisdiction over Carrollton to assume control over its governance of or control of the subject property; or interfering with Carrollton in any way pertaining to ownership, control, use, or disposition of church property.

The district court then granted Carrollton's motion for summary judgment, declaring that all property held by, for, or in Carrollton's name is held and owned by Carrollton, which holds and owns all property in its name in full, complete, and unfettered ownership in accordance with Louisiana law and further, that the express trust provisions relied on by the Presbytery are unenforceable and without legal effect as to

172 So.3d 5

the subject property. Additionally, the district court issued a permanent injunction enjoining the Presbytery from asserting ownership, use, control, or a trust over any property titled in [ ] Carrollton's name and also from taking any action that could affect Carrollton's property rights, which specifically included, but was not limited to, the actions enumerated in the preliminary injunction.

This court further stated:

The First Amendment to the United States Constitution prohibits courts from resolving such

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