Tuesday, November 28, 2006

Reasons to clarify property title apart from wanting to leave PCUSA
By Lloyd J. Lunceford
Monday, November 27, 2006

For many months I have read numerous letters to the editor offering suggestions to churches that may be considering leaving the PCUSA or churches concerned about retaining or clarifying ownership and use of local church property. Many of the suggestions have been very insightful. Some of the suggestions, however, though well-intentioned, may not accomplish their stated purposes. Indeed, some of the suggestions could have unintended, adverse consequences. As legal counsel advising several churches around the country, and as one who recently negotiated a court judgment to which both local church and presbytery agreed and jointly submitted for court approval, I'd like to offer a little food for thought.

First, I think consideration should be given to whether it might be appropriate in some circumstances to de-link the issue of property rights from denominational affiliation/disaffiliation. Resolving the issue of property rights does not always have to take place in tandem with, or in the throes of, debating over whether to leave the denomination. It can be helpful to "divide the question" and address those two issues at separate times and in separate venues. There are important reasons to clarify property title apart from whether one wishes to stay with or leave the PCUSA. A bank won't lend money to a local church if there is a question about whether the borrower has clear title to the property which is serving as the collateral securing the loan. Nor will some potential large donors give to a local church capital campaign if similar questions are present. For these reasons alone, wholly apart from the separate issue of staying with or leaving the denomination, a local church may need to obtain a declaratory judgment from a civil court. As explained below, de-linking these two issues can have important practical consequences in litigation and negotiation.
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Book: A Guide to Church Property Law:Theological, Constitutional and Practical Considerations

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