Presbytery of St. Andrew, Presbyterian Church United Statesa., Inc. v. First Presbyterian Church Pcusa of Starkville, 2016–CA–01275–SCT

• Decision Date: 12 April 2018
• Docket Number: NO. 2016–CA–01275–SCT,2016–CA–01275–SCT
• Citation: 240 So.3d 399
• Parties: PRESBYTERY OF ST. ANDREW, Presbyterian Church U.S.A., Inc. v. FIRST PRESBYTERIAN CHURCH PCUSA OF STARKVILLE, Mississippi
• Court: Mississippi Supreme Court

240 So.3d 399

PRESBYTERY OF ST. ANDREW, Presbyterian Church U.S.A., Inc.

v.FIRST PRESBYTERIAN CHURCH PCUSA OF STARKVILLE, Mississippi

NO. 2016–CA–01275–SCT

Supreme Court of Mississippi.

April 12, 2018

ATTORNEYS FOR APPELLANT: P. SCOTT PHILLIPS, Greenville, ANDREW FRANK TOMINELLO

ATTORNEYS FOR APPELLEE: RYAN K. FRENCH, Baton Rouge, LLOYD J. LUNCEFORD, DOLTON W. McALPIN, Starkville

EN BANC.

RANDOLPH, PRESIDING JUSTICE, FOR THE COURT:

¶ 1. First Presbyterian Church PCUSA of Starkville, Mississippi, ("FPC") filed its complaint for declaratory judgment, a temporary restraining order, and a preliminary injunction in the Chancery Court of Oktibbeha County requesting legal protection and injunctive relief against the Presbytery of St. Andrew Presbyterian Church U.S.A., Inc. ("Presbytery"), after the Presbytery claimed FPC's property was held in trust for the Presbyterian Church in the United States of America ("PCUSA"). The chancery court granted summary judgment in favor of FPC, finding no evidence of any trust, express or implied. We affirm the finding of the chancery court.

STATEMENT OF THE FACTS AND PROCEDURAL HISTORY

¶ 2. FPC has occupied the same piece of land in central Starkville for more than 160 years, as it was founded in 1821 as a Congregational Church and mission to the Western Frontier. FPC holds title to six parcels of real property in Starkville—the most significant being the main church facility. FPC acquired the main church property in 1837, through a deed of conveyance to the "Trustees for the Presbyterian Church in the Town of Starkville." In 1924 FPC constructed its current sanctuary on the property.

¶ 3. FPC has transitioned into and out of multiple Presbyterian denominations, including the Old School Presbyterian Church; the Presbyterian Church, Confederate States of America; and the Presbyterian Church in the United States ("PCUS"). In 1983, the PCUS merged with another Presbyterian denomination to create the Presbyterian Church in the United States of America ("PCUSA"). FPC has been affiliated with the PCUSA since its inception.

¶ 4. FPC claimed that, although it was affiliated with several different Presbyterian denominations, it existed as an "independent, unincorporated religious association from its founding until 2003." On June 22, 2003, FPC's governing board (its session) passed a resolution declaring that "it is in the best interest of this association that it be forthwith incorporated as a nonprofit corporation." The resolution was approved by the congregation, and FPC has remained an incorporated entity (First Presbyterian Church PCUSA of Starkville, Mississippi) since that date.

¶ 5. Following its incorporation, FPC conveyed to the corporation its main property and facility in Starkville. The titleholder of record was then identified as FPC's corporate entity. Any property duly transferred to the corporation remains held by and titled in the name of First Presbyterian Church, Starkville, Mississippi.

¶ 6. Prior to 1982, no official documents of the PCUS included trust language. Moreover, in 1953, PCUS adopted an official position unambiguously disclaiming any trust interest in property and confirming that the beneficial interest in the property remained with the congregation. In 1982, PCUS amended its constitution to include the word "trust." Further, a reservation provision was included with the adoption of the trust clause, which allowed a local church not to be required to seek or obtain consent or approval of any other entity to buy, sell, or mortgage the church's property as a church of the PCUS.

¶ 7. After the PCUSA was formed, the Book of Order contained a trust clause, and local churches then were required to "obtain permission before selling, mortgaging, or otherwise encumbering the property of that particular church." Because this new trust clause was a departure from prior practice, the PCUSA's constitution allowed for a "property exception" which provided as follows:

The provisions of this chapter shall apply to all congregations of the Presbyterian Church (U.S.A.). Except that any congregation which was not subject to a similar provision of the constitution of the church of which it was a part, prior to the reunion of the Presbyterian Church in the United States [PCUS] and the United Presbyterian Church in the United States of America [UPC] to form the Presbyterian Church (U.S.A.) [PC(USA) ], shall be excused from the provision of this chapter if the congregation, within a period of eight years following the establishment of the Presbyterian Church (U.S.A.), vote to be exempt from such provision in a regularly called meeting and shall thereafter notify the Presbytery of which it is a constituent church of such vote. 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 Presbyterian Church (U.S.A.)[PC(USA) ]. This paragraph may not be amended.

¶ 8. In response to this "opt out" clause and a session meeting with a representative of the presbytery, FPC voted to exempt itself by passing a resolution voting to opt out of the trust clause. The resolution read that FPC

does hereby vote to be exempt from the provisions of Chapter VIII of the Book of Order to which it was not subject prior to the Reunion which established PCUSA and will hold title to its property and exercise its privileges of incorporation under the Book of Church Order, PCUS (1982–1983 edition).

(Emphasis added.) FPC maintained this same position for the next few years, as evinced by session minutes from a June 1989 meeting.

Elder James Long brought it to the attention of the Session that he had talked with David Snellgrove at Presbytery regarding the property question and determined that in 1984 we passed a resolution at a Congregational Meeting to remain under the Old Book of Church Order. In the beginning of 1990 Presbytery will publish a list of churches who opted to remain under the Old Book of Church Order. Elder Long further stated at the time of the resolution that the Transition Commission met and acted on the resolution. Elder Long has requested a copy of the minutes of this Commission which our name appears. At the present time there are three situations which could exist under the Old Book of Church Order.

1. If there was a split in the congregation, the Presbytery would decide which half would get the property.

2. If our church is dissolved then Presbytery gets the property.

3. If we pull out of the Presbyterian Church, we get our property.

These are the three scenarios we are operating under. Rev. Parsons stated that he had re-submitted the request so as to cover this church in the eventuality that no action was taken earlier.

¶ 9. When incorporating in 2003, and subsequently adopting bylaws, FPC placed in those bylaws a reaffirmation of its intent to be exempt. In 2005 Session minutes, FPC reported that it had submitted the following to the chief officer of the Presbytery:

The Church By Laws were introduced and it was related that the bylaws will follow the Book of Church Order with the exception of retaining ownership of church property in the event the church dissolves. The property will not become property of the Presbytery .

(Emphasis added.)

¶ 10. The Presbytery is a council of the church and a governance level. In Presbyterian governance, the Presbytery is the central governing unit. Under the governing constitution of the PCUSA, the local presbytery is responsible for waiving or seeking enforcement of any property claims of the denomination against the local church.

¶ 11. Due to increasing disagreement with the PCUSA, FPC voted to cease monetary contributions to the Presbytery and look at the possibility of joining another Presbyterian denomination. In response to schism in the membership of FPC, the Presbytery notified FPC that it had appointed a Presbytery committee, called an Administrative Commission, to "inquire into and settle difficulties" at FPC. The Administrative Commission was authorized to fire the pastor, substitute itself for FPC's elected leadership, and take over FPC's property.

¶ 12. On March 22, 2015, FPC's session passed a resolution authorizing the filing of a legal action to determine the property rights of FPC, the Presbytery, and the PCUSA. FPC sought a declaratory judgment recognizing FPC's exclusive ownership of all property held by it or in its name, free of any trust claimed by the PCUSA. FPC also requested a temporary restraining order prohibiting the Presbytery from taking control or possession of FPC's property or from interfering with FPC's property ownership.

¶ 13. In response, the Presbytery argued that the historic polity of the Presbyterian Church holds that when a congregation is in schism, as the Presbytery contends is the case at FPC, its presbytery determines which faction receives the property, based on which faction is loyal to its denomination of membership. The Presbytery contended that the Administrative Commission's goal was to effect reconciliation of the church's members and to hold the congregation together. According to the Presbytery, the Complaint was filed by "one faction in the schism, who currently have a majority vote of the session and believe that they have a majority of membership on their side."

¶ 14. The Presbytery asserted a counterclaim for declaratory relief that FPC is subject to PCUSA's Constitution, governance, and dispute-resolution procedures, resulting in dismissal of the case or holding the case in abeyance indefinitely pending review by PCUSA. In the alternative, PCUSA asked the court to declare that the subject property was held in trust for the use and benefit of the Presbytery of St. Andrew. The Presbytery also sought injunctive relief, enjoining FPC from encumbering, selling, divesting, or otherwise transferring any property until such time as...