Calvary Temple Church, Inc. v. Paino

827 N.E.2d 125, 2005 Ind. App. LEXIS 798, 2005 WL 1118392
CourtIndiana Court of Appeals
DecidedMay 11, 2005
Docket02A03-0407-CV-340
StatusPublished
Cited by2 cases

This text of 827 N.E.2d 125 (Calvary Temple Church, Inc. v. Paino) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calvary Temple Church, Inc. v. Paino, 827 N.E.2d 125, 2005 Ind. App. LEXIS 798, 2005 WL 1118392 (Ind. Ct. App. 2005).

Opinion

OPINION

VAIDIK, Judge.

Case Summary

Calvary Temple Church ("CTC") appeals the grant of summary judgment to its former pastors, Paul E. Paino and his son Paul C. Paino, in a dispute over the pastors pensions. Under the substituted contract doctrine, CTC's Constitution-an enforceable contract between CTC and its members-prevails over Paul E.'s and Paul C.'s individual pension contracts signed before the enactment of the church constitution; thus, the trial court did not err in refusing to enforce the individual pension contracts. In addition, because the case did not involve the interpretation of any ecclesiastical doctrine, the trial court did not err in hearing and deciding the case. For these reasons, we affirm.

Facts and Procedural History

Paul E. founded CTC, an independent, non-affiliated church, in Fort Wayne, Indiana, in 1956. CTC is a not-for-profit *128 religious corporation. 1 During his tenure with CTC, he held various titles in the church such as pastor, senior pastor, and bishop. In 1970, Paul C. joined the pastoral staff of the church and throughout the course of his affiliation with the church held various titles including pastor, co-pastor, and senior pastor.

In the summer of 2000, CTC began to experience a great deal of turmoil and dissention centering upon rumors that Paul C. was having an inappropriate relationship with a female employee of the church who was also a member of CTC. Apparently Paul C. and the employee/member had met alone, which was contrary to the principles of CTC that prohibited a pastor from meeting alone with a member of the opposite sex. Additionally, at one meeting that took place at a local restaurant both Paul C. and the employee/member consumed alcohol, which also violated the principles of the church. Paul C. denied that the relationship was sexual, but he did admit that his "emotional involvement" in the relationship was "unhealthy." Appellant's App. p. A277. Later that summer, Paul C. made a public statement to the congregation that he had compromised some principles, that he was sorry, and that he was working with a prayer group of men in the parish. This public statement did little to remedy the tumultuous atmosphere in the church and may have augmented it. Paul C. and his wife were divorced in March 2001. Paul C. resigned from the church on April 30, 2001; Paul E. separated from the church on May 6, 2001.

At the center of this case are the CTC Constitution and the pension agreements between CTC and Paul E. and Paul C. CTC's Constitution evolved over the years and the amendments relevant to the current litigation occurred in 1981, 1988, 1992, and 2000. Pertinent to this litigation are the provisions in those constitutions that discussed retirement benefits and pension payments for the pastors, namely Paul E. and Paul C. Additionally, both Paul E. and Paul C. signed various agreements over the years with CTC titled either pension benefits, retirement benefits, or deferred compensation. Relevant provisions from CTC's Constitution and from the various agreements between Paul E. and CTC and Paul C. and CTC are reproduced below.

The 1971 Pension Contract between CTC and Paul E., which was signed by Paul E. and representatives of CTC and was notarized, stated as follows:

[In consideration of the premises and the services heretofore rendered by Pastor [Paul E.] and to be rendered by him in [sic] behalf of the Church, it is agreed that: ... (8) If Pastor [Paul E.] remains as Pastor of the Church until June 13, 1981, the Church shall pay him for life the sum of One Thousand Five Hundred Dollars ($1,500.00) per month whenever he voluntarily resigns, or because of ill health is unable to continue as Pastor . or for any other reason his services are terminated as Pastor ..., after the date of June 18, 1981. It is further agreed that any notes, debts, bills, obligations, certificates, bonds, or salary that the Church may owe Pastor [Paul E.] for services rendered or money loaned will be paid in full to him by the Church within ninety (90) days of termination of his services as Pastor at any time after January 1, 1972. It is further agreed between the Church and Pastor *129 [Paul E.] that in the event of his incapacity ... [before] January 1, 1972, then and in such event and upon proof of such incapacity, this contract shall be in full force and effect ... and the ... retirement date ... shall be advanced to the date of such incapacity.

Appellant's App. p. A-858-54.

The 1976 Retirement Benefit Contract between CTC and Paul E., which was signed by Paul E. and representatives of CTC and was notarized, stated as follows:

1) Upon his retirement as Pastor-President of [CTC], [Paul E.] will continue to be paid on a monthly basis a sum which shall be equal to the salary which he shall have been receiving from [CTC] at the time of said retirement, said payments to continue until his death. 2) Upon said retirement, and in addition to any payments made to him under the provisions of paragraph (1) above, Pastor [Paul E.] shall be paid a monthly rental allowance equal to the rental al-lowanee which he shall have been receiving from the Church at the time of his retirement, said payments to continue until his death. 8){CTC] further agrees that any notes, debts, bills, obligations, certificates, bonds, or salary that the Church may owe to Pastor [Paul E.] for services rendered or money loaned by him to the Church will be paid in full to him by the Church within ninety (90) days of the termination of his services as Pastor, whether such termination be by reason of his retirement or for any other cause whatsoever. © 4)[CTC] further agrees that the obligations to pay the retirement salary and the rental allowance ... are not contingent upon nor affected in any manner by any other income received by Pastor [Paul E.] from any other source.... 6) For his part, Pastor [Paul E.] agrees that he will continue his work as Pastor-President of [CTC], and will provide his best efforts on behalf of the Church and of the members thereof, and that in the event of his resignation ... that he will not accept a similar position with any other church within a 30-mile radius of Fort Wayne, Indiana....

Id. at A-230-81.

CTC's 1981 Constitution was signed only by Phillip C. Paino, son of Paul E. and brother of Paul C., as Secretary of CTC and was notarized. The Constitution and By-laws included in its "Finances" Article a section entitled "Pension Plan for Senior Pastor," which provided as follows:

A joint Committee consisting of the Directors and Elders of [CTC] have instituted a pension plan for the Senior Pastor with the following provisions: a. Senior Pastor and Founder, [Paul E.], on his retirement ... shall receive the same salary then in effect until his death. He shall also receive his rental allowance each month based on the amount of allowance at the date of retirement. b. It is the responsibility of [CTC] to provide this pension for [Paul E.] regardless of. what his income is from any other source and is not to be affected by any other related Corporation which he has served. The pension plan of [CTG] shall be over and above and separate and different from the pension plan of any other Corporation. c.

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Related

Beale v. Kurtz (In Re Beale)
381 B.R. 727 (S.D. Indiana, 2008)
Calvary Temple Church, Inc. v. Paino
841 N.E.2d 1133 (Indiana Supreme Court, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
827 N.E.2d 125, 2005 Ind. App. LEXIS 798, 2005 WL 1118392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calvary-temple-church-inc-v-paino-indctapp-2005.