New Jerusalem Church of God, Inc. v. Sneads Cmty. Church, Inc.

• Decision Date: 12 September 2013
• Docket Number: No. 1D12–2603.,1D12–2603.
• Citation: 147 So.3d 25
• Parties: The NEW JERUSALEM CHURCH OF GOD, INC., Appellant/Cross–Appellee, v. SNEADS COMMUNITY CHURCH, INC., a Florida Not–for–Profit Corporation, James H. Lewis a/k/a J.H. Lewis, and Clara M. Lewis, his Wife, Appellees/Cross–Appellants.
• Court: Florida District Court of Appeals

147 So.3d 25

The NEW JERUSALEM CHURCH OF GOD, INC., Appellant/Cross–Appellee

v.SNEADS COMMUNITY CHURCH, INC., a Florida Not–for–Profit Corporation, James H. Lewis a/k/a J.H. Lewis, and Clara M. Lewis, his Wife, Appellees/Cross–Appellants.

No. 1D12–2603.

District Court of Appeal of Florida, First District.

Sept. 12, 2013.

Rehearing Denied Oct. 18, 2013.

Howard S. Marks and Jessica K. Hew of Burr & Forman LLP, Orlando, for Appellant/Cross–Appellee.

H. Guy Green of Green Law Firm; Frank A. Baker and Kathryn Michelle Blankenship Tagert of Baker, Mercer & Young, Marianna, for Appellees/Cross–Appellants.

Opinion

ROBERTS, J.

This appeal involves the ownership of a piece of real property housing a church in Jackson County, Florida. After a jury trial, title was quieted in favor of the appellee, Sneads Community Church, Inc. (SCC). The appellant, New Jerusalem Church of God, Inc. (NJC, Inc.), raises several issues on appeal. Primarily, it argues that the trial court erred in denying its motions for directed verdict and judgment notwithstanding the verdict (JNOV) on the grounds that NJC, Inc., is a hierarchical church and, therefore, owns the property at issue. We agree with the appellant that the trial court erred in denying its motion for directed verdict on this ground and accordingly reverse the denial of its motion for JNOV. The appellant also raises issues regarding the denial of its motion for new trial, namely whether the trial court erred in restricting its voir dire and whether the trial court erred in denying its requested jury instruction. We find no error in the voir dire and do not address the jury instruction issue as it is subsumed by our reversal. In light of our reversal, we also find it unnecessary to address the appellees' cross-appeal.

Facts

NJC, Inc., was founded by Bishop R.B. Hemingway and incorporated in 1947. NJC, Inc., self-identifies as a hierarchical church, meaning that there is a mother church in Orlando, Florida, and various local churches, primarily in Georgia and Florida, whose pastors are appointed by NJC, Inc., who receive guidance from NJC, Inc., when requested, and who are directed to follow NJC, Inc.'s religious tenets and doctrines including its governing document, The Book of Rules (the Book). The Book includes various requirements for church members including tithing and attendance at annual conferences.

With regard to property ownership by NJC, Inc.'s local churches, the Book mandates that local property is to be held in trust by NJC, Inc., by a legally elected board of trustees who are members of the church. The Book also provides that the local church deeds are to contain a trust clause that the property is for the ministry and membership of NJC, Inc., and subject to its doctrines and laws. With regard to property ownership, the Book provides:

Members of any New Jerusalem Church of God disorganizing or dissolving cannot use or take any property with them; such property will revert to the State annual for church purposes only under the supervision of the District Bishop.

The New Jerusalem Church of God of Sneads, Florida (NJC, Sneads), came into being sometime in the early 1960s. In 1964, Bishop Hemingway appointed Willis L. Raines, Sr., as the pastor of NJC, Sneads. In 1965, at an annual NJC, Inc., conference, appellee Mr. Lewis was ordained as a deacon. As early as 1965, NJC, Sneads, was reporting money to NJC, Inc., at the annual conference. As of 1965, NJC, Inc., believed that NJC, Sneads, was under its umbrella of churches.

In 1966, NJC, Sneads, using money raised by local parishioners, purchased the property at issue. Title to the local property was taken by Raines, Mr. Lewis, Mrs. Lewis, and two others as “trustees of the New Jerusalem Church of God of Sneads, Florida.” This deed did not conform to the manner dictated by the Book in several undisputed ways: the trustees were not elected, the local church was not deeded to NJC, Inc., and the requisite trust clause was not included. The appellees argue that this non-conformance was intentional to reflect their intent that the local church would own the property rather than NJC, Inc. The appellant maintains that it was not aware that the deed did not conform to the Book because NJC, Sneads, affirmatively represented that the property was deeded to NJC, Inc., and continued to actively participate with NJC, Inc., long after the property was acquired.

By all accounts, NJC, Sneads, actively participated in NJC, Inc., from the 1960s to the 1990s in various ways such as by attending annual conferences and contributing financially. Appellees Mr. and Mrs. Lewis along with Raines all admitted that for 30 years, NJC, Sneads, was associated with NJC, Inc., and that NJC, Sneads, followed the Book to some extent. However, the appellees seem to make the distinction that NJC, Sneads, was loosely associated with the New Jerusalem Church of God, but argue that it was not under the NJC, Inc., umbrella.

By the mid–1990s, Raines had left NJC, Sneads, and NJC, Sneads, became dissatisfied with the replacement pastor appointed by NJC, Inc. In 1995, a meeting was held in Sneads with representatives from NJC, Sneads, and NJC, Inc., during which NJC, Sneads, expressed its displeasure with NJC, Inc. The effect of this meeting reverberated differently with the parties. The appellant maintains that it understood NJC, Sneads' frustrations, but did not believe that NJC, Sneads, was formally disaffiliating from NJC, Inc. The appellees, however, maintain that this meeting constituted their notice that NJC, Sneads, was completely parting ways with NJC, Inc.

In 1997, the trustees on the original 1966 deed (including the appellees Mr. and Mrs. Lewis) conveyed the property “as trustees of the New Jerusalem Church of God of Sneads, Florida” to SCC. It was by this conveyance that the appellee SCC asserted ownership in the property. This conveyance was made without the knowledge of the appellant, who claimed to be unaware of the cloud on its title to the property until 2000.

In 2002, the appellant filed a complaint to quiet title in its favor. In the complaint, the appellant asserted that it was a hierarchical church and argued that the appellees were prohibited from claiming any right to the property as per NJC, Inc.'s governing documents. The appellant also argued that the appellee SCC had no right to the property because the purported grantors in the 1997 deed had no actual or apparent authority from NJC, Inc., the cestui que trust, to convey the property to SCC. The appellees filed affirmative defenses and counterclaimed to quiet title in favor of SCC on the basis of the 1997 conveyance.

A jury trial was held in which the appellant's witnesses testified that, although the Book did not specifically state that NJC, Inc., was a hierarchical church, the structure of the organization and manner of governance was clearly hierarchical. At the close of testimony, the appellant moved for directed verdict, arguing that the trial court was obligated to defer to its self-characterization as a hierarchical church. The appellant further argued that the evidence showed NJC, Sneads, was a part of the hierarchical church structure, and by virtue of this hierarchical structure, the property was owned by NJC, Inc. The trial court denied the motion for directed verdict, and the case was submitted to the jury, which returned a verdict finding that the property was owned by SCC.

The appellant filed a motion for JNOV in which it requested a judgment in accordance with its motion for directed verdict and based upon the manifest weight of the evidence in its favor. The motion for JNOV was denied, and final judgment was entered quieting title in favor of SCC.

We review the trial court's denial of the motion for directed verdict and the motion for JNOV de novo. See Specialty Marine & Indus. Supplies, Inc. v. Venus, 66 So.3d 306, 309 (Fla. 1st DCA 2011). As stated in Lindon v. Dalton Hotel Corp., 49 So.3d 299, 303 (Fla. 5th DCA 2010) :

When deciding the appropriateness of a directed verdict or JNOV, Florida trial and appellate courts use the test of whether the verdict is, for JNOVs, or would be, for directed verdicts, supported by competent, substantial evidence. Speedway SuperAmerica, LLC v. Dupont, 933 So.2d 75, 79 (Fla. 5th DCA 2006). A motion for directed verdict or JNOV should be granted only if no view of the evidence could support a verdict for the nonmoving party and the trial court therefore determines that no reasonable jury could render a verdict for that party. See Cecile Resort, Ltd. v. Hokanson, 729 So.2d 446, 447 (Fla. 5th DCA 1999). If there are conflicts in the evidence or different reasonable inferences may be drawn from it, then the issue is a factual one that should be submitted to the jury and not be decided by the trial court as a matter of law.

In considering the issues in this case, we find two layers of inquiry are necessary. First, whether the trial court was obligated, as a matter of law, to defer to NJC, Inc.'s self-characterization as a hierarchical church. Second, whether, as a matter of law and a matter of fact, NJC, Sneads, was affiliated with NJC, Inc., such that the property belonged to NJC, Inc. We find that both of these inquiries should be answered in the affirmative, thus requiring reversal of the final judgment.

NJC, Inc., as a Hierarchical Church

Over the years, the courts have been faced with balancing the constitutional guarantees regarding religion found in First Amendment with the need for judicial intervention in the resolution of interchurch disputes. The case law has unfolded to create two approaches to resolve interchurch disputes: the “neutral principles approach” and the “deference approach.”

The appellant represents that, with regard to resolving church-related property disputes, Florida has adopted the deference approach. The deference approach originated in Watson v. Jones, 80 U.S. (13 Wall.) 679, 20 L.Ed. 666 (1871). Watson ruled that, in a...