Virginia College Bldg. Authority v. Lynn

• Court: Virginia Supreme Court
• Writing for the Court: LEMONS, Justice.
• Citation: Virginia College Bldg. Authority v. Lynn, 538 S.E.2d 682, 260 Va. 608 (2000)
• Decision Date: 03 November 2000
• Docket Number: No. 992099.,992099.
• Parties: VIRGINIA COLLEGE BUILDING AUTHORITY v. Barry LYNN, et al.

538 S.E.2d 682

260 Va. 608

VIRGINIA COLLEGE BUILDING AUTHORITY v. Barry LYNN, et al.

No. 992099.

Supreme Court of Virginia.

November 3, 2000.

William G. Broaddus (James A. Sonne; McGuire, Woods, Battle & Boothe, on briefs), Richmond, for appellant.

Ayesha Khan (Steven K. Green; Steve Bricker; Rebecca K. Glenberg, Richmond; Richard W. Ferris, Williamsburg; Steve Bricker & Associates, Richmond, on brief), for appellees.

Amicus Curiae: State Council of Higher Education (Mark L. Earley, Attorney General; William H. Hurd, Solicitor General; Ashley L. Taylor, Jr., Deputy Attorney General; Maureen R. Matsen, Senior Assistant Attorney General; Alison P. Landry, Assistant Attorney General; Valerie L. Myers, Assistant Attorney General, on brief), in support of appellant.

Present: CARRICO, C.J., LACY, KEENAN, KOONTZ, KINSER and LEMONS, JJ., and POFF, Senior Justice.

LEMONS, Justice.

The Virginia College Building Authority ("VCBA" or "Authority") approved the issuance of revenue bonds, colloquially referred to as "conduit bonds," for the benefit of Regent University ("Regent"). The funds to be raised by the bonds were designated to finance projects at a new campus in Alexandria and for refinancing of student housing on the Virginia Beach campus. Pursuant to the Public Finance Act of 1991, Code §§ 15.2-2600 to -2663, the VCBA filed a motion for judgment in the Circuit Court for the City of Richmond requesting validation of the bonds.

Appellees, Barry Lynn and other unnamed Virginia members of Americans United for Separation of Church and State, and Frank Feibelman, Mary Bauer, and Bernard H. Levin appeared and filed grounds of defense contesting the validation of the bonds. At the time of the circuit court hearing, VCBA had completed approximately thirty-five bond issues for private colleges or universities in the Commonwealth of Virginia.

After hearing evidence, the circuit court refused to validate the bonds, holding that Regent is ineligible to participate in the VCBA program because Regent is a pervasively sectarian institution and because its primary purpose is "religious training." In this appeal, we consider the circuit court's denial of Regent University's participation in bond financing of these projects pursuant to the Educational Facilities Authority Act, Code § 23-30.39 et seq. (the "Act").

I. FACTS

A. REGENT UNIVERSITY

Regent University is self-described as a "private Christian university" with a main campus located in Virginia Beach, Virginia. Regent offers more than 20 graduate degrees through eight accredited colleges, including the College of Communication and the Arts, School of Counseling and Human Services, School of Government, School of Business, School of Education, School of Law, School of Divinity, and the Center for Leadership Studies.¹ Regent is accredited by the Southern Association of Colleges and Schools ("SACS") and its Law School is separately accredited by the American Bar Association ("ABA").

Regent was founded upon Dr. M.G. ("Pat") Robertson's "inspired vision of establishing a graduate-level institution that would train mature men and women for the challenge of representing Christ in their professions." It was "incorporated ... to recover the Christian heritage of our nation." Regent's "ultimate purpose" is to "glorify[ God and His Son, Jesus Christ."

Regent was created under the auspices of the Christian Broadcasting Network, Inc. ("CBN"), the Board of Directors of which still appoints the chairman and all 48 members of the University's Board of Regents. Three members of Regent's board are also members of CBN's board. Characterized as a "parachurch organization" with a "Christian purpose," CBN is to own all assets and incur all debts in the event of the dissolution of Regent. Regent has received over $200 million in financial support from CBN. As the founder and president of CBN, and the Chancellor of Regent, Robertson acts as "the principal liaison" between CBN and Regent. He consults with Regent "on such matters as the mission of the university, its scope and its direction," and provides guidance on and coordinates matters such as Regent's fiscal expenditures and general resource development.

Regent's Articles of Incorporation, provide that:

[Regent] shall exist for the purpose of bringing glory to God and His Son Jesus Christ by providing an institution or institutions of learning in which those who are mature in the knowledge of God and His ways can assist and guide, in a spirit of free inquiry and scholarly excellence, those who would learn of Him, His ways, and His creation, while together they study ways to glorify God and better their world.

Regent has adopted a Statement of Faith that provides:

Regent University is a Christ-centered institution. The Board of Trustees, along with the faculty and staff of the university, are committed to an evangelical interpretation and application of the Christian faith. The campus community is closely identified with the present-day renewal movement, which emphasizes the gifts, fruit and ministries of the Holy Spirit. It is expected that all trustees, officers, administrators and faculty will subscribe to this statement in writing:

1. That the Holy Bible is the inspired, infallible and authoritative source of Christian doctrine and precept.

2. That there is one God, eternally existent in three persons: Father, Son and Holy Ghost.

3. That man was created in the image of God but, as a result of sin, is lost and powerless to save himself.

4. That the only hope for man is to believe on the Lord Jesus Christ, the virginborn son of God, who died to take upon Himself the punishment for the sin of mankind, and who rose from the dead, so that by receiving Him as Savior and Lord, man is redeemed by His blood.

5. That Jesus Christ will personally return to earth in power and glory.

6. That the Holy Spirit indwells those who receive Christ, for the purpose of enabling them to live righteous and holy lives.

7. That the Church is the Body of Christ and is comprised of all those who through belief in Christ have been spiritually regenerated by the indwelling Holy Spirit. The mission of the Church is worldwide evangelization and the nurturing and discipling of Christians.

Additionally, Regent has adopted a Mission Statement that provides:

Preamble-Regent University is a graduate institution that exists to bring glory to God the Father and His Son Jesus Christ through the work of the Holy Spirit.

Mission—Our mission is to provide an exemplary graduate education from biblical perspectives to aspiring servant leaders in pivotal professions and to be a leading center of Christian thought and action.

Vision—Our vision, through our graduates and other scholarly activities, is to provide Christian leadership in transforming society by affirming and teaching principles of truth, justice and love as described in the Holy Scriptures, embodied in the person of Jesus Christ, and enabled through the power of the Holy Spirit.

Regent Provost Dr. William George Selig ("Dr. Selig") testified that the practical function of these statements is to:

[Set][] the stage of [Regent's] world view, that we exist to bring glory to God. And that's our preamble. But our mission, which is played out in very practical terms, is to provide an exemplary graduate education. In other words, the finest possible education we can provide from [a] biblical perspective to people we hope will go on and make a difference in society.

Apart from the School of Divinity which has a specific purpose of theological education, instruction in other schools focuses upon traditional subjects with inclusion of biblical perspective where applicable. As Dr. Selig explained: "In areas where [scripture] doesn't fit, we don't use it or we don't spend any time talking about it. In areas where it fits, we do. And so it's just a consistency in our world view as to how we behave toward others and what does scripture have to say."

Regent has approximately 108 faculty members and 1,850 students, 289 of whom are enrolled in the School of Divinity. The average age of a Regent student is 31. Regent has no specific religious requirement for student admissions. Its admissions criteria include: (1) high intellectual achievement and scholarship, with a minimum grade point average and test scores, (2) "maturity in spiritual and/or character qualities," and (3) "[p]ersonal goals consistent with the mission and goals of Regent University."

Dr. Selig explained that although some schools at Regent inquire into "Christian commitment" for the purpose of evaluating ethical or moral standards, the lack of such a "commitment" does not negatively impact an applicant's standing for admission. All applicants are required to submit a "Clergy Recommendation," both as a matter of policy and practice. Among the questions asked is whether the applicant has "made a meaningful personal commitment to Jesus Christ." Dr. Selig explained the relevance of this information as follows:

Well, we're looking for moral and ethical standards, and we believe that if somebody is—and it's certainly, not 100 percent assured—but if somebody has made a—has made a Christian commitment, then we're assuming that they're attempting to live according to the tenets of scripture. So we see that as one piece of information that would be helpful.

Applicants also must submit a signed "Community Life Form," stating that they must "understand and be committed to receiving an education" in accordance with Regent's Statement of Faith.

Although encouraged to do so, students are not required to attend Regent's weekly corporate chapel services or participate in any particular religious activities. However, they must have "[p]ersonal goals consistent with the mission and goals of Regent University," and must submit a "[p]ersonal goals statement" addressing how their "personal and spiritual objectives" relate to Regent's "Christ-centered educational...