CENTRAL COAST BAPTIST ASS'N v. First Baptist Church

65 Cal. Rptr. 3d 100, 154 Cal. App. 4th 586, 2007 Cal. App. LEXIS 1400
CourtCalifornia Court of Appeal
DecidedAugust 23, 2007
DocketH029958
StatusPublished
Cited by1 cases

This text of 65 Cal. Rptr. 3d 100 (CENTRAL COAST BAPTIST ASS'N v. First Baptist Church) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CENTRAL COAST BAPTIST ASS'N v. First Baptist Church, 65 Cal. Rptr. 3d 100, 154 Cal. App. 4th 586, 2007 Cal. App. LEXIS 1400 (Cal. Ct. App. 2007).

Opinion

65 Cal.Rptr.3d 100 (2007)
154 Cal.App.4th 586

CENTRAL COAST BAPTIST ASSOCIATION, Plaintiff and Respondent,
v.
FIRST BAPTIST CHURCH OF LOS LOMAS, et al., Defendants and Appellants.

No. H029958.

Court of Appeal of California, Sixth District.

August 23, 2007.

*105 Omar F. James, Johnson & James, LLP, Aptos, for Appellants, First Baptist Church of Los Lomas, et al.

Edward W. Smithers, Smithers Law Firm, Mary Ann O'Hara, San Jose, Maureen *106 L. Tabari, for Respondent, Central Coast Baptist Association.

BAMATTRE-MANOUKIAN, Acting P.J.

Central Coast Baptist Association (Central Coast) is a voluntary association of approximately 100 Southern Baptist churches in California's central coast counties. First Baptist Church of Los Lomas (First Baptist) is a Southern Baptist church in Monterey County that is associated with Central Coast. Central Coast brought this action against First Baptist and against New Life Community Church of Prunedale (New Life) and New Life's pastor, Hank Holley. Central Coast alleged that an attempted takeover of First Baptist by New Life, a nondenominational church, triggered a reversionary clause in article VII, section 3, of First Baptist's constitution, which provided that the assets of First Baptist would pass to Central Coast either in the event of a "dissolution or winding up of the organization" or should First Baptist "cease to be a Southern Baptist Church."

Following a bench trial, the trial court found in favor of Central Coast. The court found that First Baptist had "ceased to function as a Southern Baptist Church," and that it had "de facto dissolved." Based on these findings, the court ordered enforcement of the reversionary clause in First Baptist's constitution, and ordered the transfer of First Baptist's assets to Central Coast.

First Baptist and New Life appeal. They argue first that the court lacked jurisdiction to determine whether First Baptist had ceased to be a Southern Baptist church, because this required the court to decide matters involving religious doctrine and practice, thus violating fundamental precepts of separation of church and state contained in the First Amendment to the United States Constitution, as well as in our California Constitution. Appellants further contend that the trial court erred in finding that First Baptist "ceased to function as a Southern Baptist Church" rather than "cease[d] to be a Southern Baptist Church," which was the language of the reversionary clause.

In addition, appellants contend that the court's findings that First Baptist ceased to function as a Southern Baptist church and that it had "de facto dissolved" were not supported by the evidence and that dissolution of a religious corporation such as First Baptist must comply with statutory formalities.

Appellants further contend that the court erred by failing to include in its order and judgment that all of First Baptist's debts and liabilities be paid before transferring its assets to Central Coast, as provided in the reversionary clause. Finally, New Life contends that, since the two causes of action against it were dismissed prior to trial, the court's judgment against it was in error.

After a careful review of the extensive body of law on the subject of jurisdiction of civil courts over church property disputes, we have concluded that the court in this case did not have jurisdiction to determine whether First Baptist had "cease[d] to be a Southern Baptist Church." Resolution of this issue necessarily required the court to decide issues involving religious doctrine, polity, and practice, an undertaking forbidden by the First Amendment.

We find, however, that the court did have jurisdiction to inquire into the alternate basis stated in the reversionary clause, namely whether there had been a "dissolution or winding up of the organization." This determination did not involve the court in any religious issues. The record shows that a faction of First Baptist *107 members proceeded on a course of conduct that violated its own constitution, bylaws and rules of order. To the extent that Southern Baptist churches are dedicated to the principle of democratic governance, and without touching upon matters of faith, we believe the record supports the court's finding that First Baptist "ceased to function as a Southern Baptist Church," by violating the rules set forth in its own constitution and bylaws for orderly government of its affairs. In addition, the last vote of the entire First Baptist membership at a regularly noticed meeting on March 24, 2004, was to dissolve and wind up the affairs of the corporation and to transfer its assets to Central Coast under the reversionary clause contained in article VII, section 3, of the First Baptist constitution. Therefore, although the formalities of corporate dissolution were not completed, we conclude that the record supports the court's finding that First Baptist had "de facto dissolved."

We further find no error in the language of the judgment ordering the transfer of First Baptist's assets to Central Coast. The court's judgment ordered transfer of the assets "under Article VII, Section 3, of the [First Baptist] Constitution." This order necessarily included the language contained in the reversionary clause in article VII, section 3, which defined the assets to be transferred as "assets [of First Baptist] remaining after payment of, or provision for payment of, all debts and liabilities of the organization."

Finally, we find that judgment against New Life on the cause of action for declaratory relief was supported by the record, notwithstanding the dismissal of two other causes of action against it, since New Life was included in the declaratory relief cause of action and was a party to an outstanding preliminary injunction regarding the subject property.

We will therefore affirm the judgment.

BACKGROUND

First Baptist was founded in 1964 as a nonprofit religious corporation. Its articles of incorporation state that its primary purpose is "to operate and maintain a Baptist Church." The corporation owns real property located near Watsonville, at the intersection of Hall Road and Sill Road.[1] The church building, with attached offices, is on this property, as are two residential buildings. The founder of the church, Zeb Wilson, bought the church property and built the church.

Although First Baptist, like other Southern Baptist churches, is autonomous and independent, its governing documents pledge its cooperation with its local association of Southern Baptist churches, which is Central Coast, as well as with the Southern Baptist Convention of California and the national Southern Baptist Convention. The constitution of First Baptist sets forth its object and purpose: "The object of this church shall be to preach the Gospel of Christ and to extend His kingdom at home and abroad, to cooperate with the Central Coast Southern Baptist Association,[2] the Southern Baptist Convention of California, and the Southern Baptist Convention, and to promulgate the spirit of missions as found in Matthew 28:16-20."

In keeping with these purposes, the bylaws of First Baptist provide that the pastor of the church "shall be committed to the work of the Southern Baptist Convention in its world-wide program of missions *108 and shall lead the church in cooperating with the work of its local association and the state and national conventions of Southern Baptists." First Baptist has been associated with Central Coast since its inception in 1964.

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Bluebook (online)
65 Cal. Rptr. 3d 100, 154 Cal. App. 4th 586, 2007 Cal. App. LEXIS 1400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-coast-baptist-assn-v-first-baptist-church-calctapp-2007.