Fire Baptized Holiness Church of God of the Americas, Inc. v. McSwain

518 S.E.2d 558, 134 N.C. App. 676, 1999 N.C. App. LEXIS 905
CourtCourt of Appeals of North Carolina
DecidedSeptember 7, 1999
DocketNo. COA98-694
StatusPublished
Cited by2 cases

This text of 518 S.E.2d 558 (Fire Baptized Holiness Church of God of the Americas, Inc. v. McSwain) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fire Baptized Holiness Church of God of the Americas, Inc. v. McSwain, 518 S.E.2d 558, 134 N.C. App. 676, 1999 N.C. App. LEXIS 905 (N.C. Ct. App. 1999).

Opinion

LEWIS, Judge.

Plaintiff Fire Baptized Holiness Church of God of the Americas, Inc. (“the denomination”) filed a complaint on 20 March 1996 against defendants (“the Shelby church”), seeking a declaration that it was the fee simple owner of property then in possession of the Shelby church. In its answer and counterclaim, the Shelby church asked the trial court to declare the newly formed Westside Praise and Worship Center the fee simple owner of the property.

[678]*678At the close of all the evidence at trial, the jurors were asked to determine two issues: first, whether the denomination was a connec-tional church organization; and second, whether the Shelby church, prior to 20 October 1994, was in a connectional relationship with the denomination with respect to property matters. The jury found that the denomination was a connectional church but that the Shelby church was not in a connectional relationship with the denomination with respect to property matters. Judgment was entered for the Shelby church, and the denomination’s claims were dismissed with prejudice. The denomination’s motion for judgment notwithstanding the verdict was denied, just as its earlier motion for a directed verdict at the close of its evidence had been. From the judgment filed 2 February 1998, the denomination appeals.

To better understand the nature of this case, it is important to first understand some background of the denomination and the Shelby church. The denomination is now over one hundred years old, with a claimed international membership of over 24,000. It is organized into three dioceses, each headed by a bishop. The bishops ordain elders to act as the bishops’ representatives to local churches. The denomination assigns pastors to its local churches, and the local churches raise the money to pay these pastors. The Shelby church joined the denomination in the 1930s. The Shelby church raised money to submit at the denomination’s annual convention, and the denomination would sometimes give money to the Shelby .church for various expenses.

At the center of the present debate is ownership of certain property in Shelby. The facility on Pickney Street that housed the Shelby church beginning in 1937 was condemned in 1970. The Reverend Samuel Ervin, the pastor of the Shelby church in 1970, located another church building on Blanton Street owned by the Davidson Memorial Baptist Church, which agreed to sell this property to the Shelby church and to acquire the condemned property on Pickney Street. In January 1970, Davidson Memorial deeded its property to the “Trustees of the Fire Baptized Holiness Church of God of the Americas, Mt. Sinai Church”; this same name appeared as the grantor on the deed to the Pickney Street property. The Shelby church purchased the Blanton Street property for $25,000 by making a down payment of $5,000 ($2,500 in the form of property traded, and the remaining $2,500 to be raised by the Shelby church) and by covering the balance with a $20,000 mortgage.

[679]*679This transaction was undertaken without the approval or permission of the denomination, and in spite of a statement made by a bishop within the denomination that both the Blanton Street property and its accompanying financial obligations were too large and unnecessary for the Shelby church. The denomination nevertheless provided a matching gift of $1,000 toward the down payment, but the Shelby church raised money for the remaining portion of the down payment, the mortgage payments and funding for subsequent renovations.

In a 1983 condemnation action brought against the “Trustees of the Fire Baptized Holiness Church of God of the Americas, Mt. Sinai Church,” the City of Shelby paid the Shelby church approximately $28,800 for a parking lot and boarding house on the Blanton Street property. This was done without the permission or approval of the denomination. The Shelby church used these proceeds to buy three new parcels of property and to pay for church renovations, relocation of the fellowship hall, and improvements to the church sanctuary. When the condemnation proceeds did not cover all of the renovation expenses, the Shelby church took out a second mortgage on the church property, without the permission or approval of the denomination, for $25,000 in 1990. The Shelby church neither sought nor received assistance from the denomination in making these renovations.

In October 1994, the Shelby church voted to end its affiliation with the denomination. On 3 January 1996, the trustees of “the Fire Baptized Holiness Church of God of the Americas, Mt. Sinai Church” conveyed the church property to themselves as trustees of the Westside Praise and Worship Center. It was this conveyance that led to the denomination’s legal action against the Shelby church, and the Shelby church’s success at trial has led to the denomination’s appeal to this Court.

The denomination’s first argument on appeal is that the trial court erred by denying the denomination’s motions for directed verdict and for judgment notwithstanding the verdict. Within this argument the denomination makes three separate contentions: (1) that the jury’s finding that the denomination is connectional, with nothing more, justified judgment for the denomination; (2) that the nature of the deed required judgment for the denomination; and (3) that “the verdict that the Shelby church and the [denomination] lacked a connectional relationship on property matters does not support the judgment.”

[680]*680Although constitutional guarantees and the concept of separation of church and state preclude us from ruling on purely ecclesiastical issues, our courts “do have jurisdiction as to civil, contract and property rights which are involved in, or arise from, a church controversy.” A.M.E. Zion Church v. Union Chapel A.M.E. Zion Church, 64 N.C. App. 391, 412, 308 S.E.2d 73, 85 (1983), disc. review denied, 310 N.C. 308, 312 S.E.2d 649 (1984). In deciding these issues, a central question is whether the church is connectional or congregational. As established in Simmons v. Allison, 118 N.C. 763, 24 S.E. 716 (1896) and summarized more recently in Looney v. Community Bible Holiness Church, 103 N.C. App. 469, 473, 405 S.E.2d 811, 813 (1991),

[c]onnectional churches are governed by large bodies and individual congregations bear the same relation to the governing body as counties bear to the State. Congregational churches are independent republics, governed by the majority of its [sic] members and subject to control or supervision by no higher authority. Although congregational churches often associate together for mission purposes, these associations are strictly voluntary and have no governmental authority over the individual congregations.

Id. (citations omitted). One early Supreme Court case in this state cited the Protestant Episcopal, Methodist, Presbyterian and Roman Catholic churches as examples of connectional churches and the Baptist, Congregational and Christian churches as congregational. Conference v. Allen, 156 N.C. 524, 526, 72 S.E. 617, 618 (1911).

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518 S.E.2d 558, 134 N.C. App. 676, 1999 N.C. App. LEXIS 905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fire-baptized-holiness-church-of-god-of-the-americas-inc-v-mcswain-ncctapp-1999.