Saturday, October 10, 2009

Day in court: Churches facing legal battles over property

Churches facing legal battles over property remain dependent on state-by-state rulings
Edward E. Plowman
posted October 10,2009

If your denomination-affiliated congregation bought land, erected a church building, and maintained it for years, all with its own money, but has decided to withdraw from its denomination to join another or none, who owns the church property now?

It depends on which state and which denomination your church is in— even if your church's name is on the property title deed and everything is in order.

Some denominations have imposed a unilateral trust on the property of their member churches: If a congregation leaves, the property stays with the denomination.

Denominations like The Episcopal Church (TEC) and the Presbyterian Church (USA) have been hauling an increasing number of dissident congregations into court. They are spending millions and going to the mat to protect their trust-clause franchises. TEC's Colorado diocese alone spent $2.9 million battling successfully for the property of just a single church in Colorado Springs, according to a diocesan report.
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