Gipson v. Brown

706 S.W.2d 369, 288 Ark. 422, 1986 Ark. LEXIS 1825
CourtSupreme Court of Arkansas
DecidedMarch 31, 1986
Docket85-180
StatusPublished
Cited by32 cases

This text of 706 S.W.2d 369 (Gipson v. Brown) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gipson v. Brown, 706 S.W.2d 369, 288 Ark. 422, 1986 Ark. LEXIS 1825 (Ark. 1986).

Opinion

Jack Holt, Jr., Chief Justice.

The parties to this lawsuit are all members of the Sixth and Izard Church of Christ, Inc., a church incorporated under Arkansas law as a nonprofit corporation. Appellants are elders of the church and appellees are part of its general membership. Appellees instituted suit in Pulaski Chancery Court alleging that they have been denied financial data and other business information relating to the church and asserting that, as members of a nonprofit corporation, they are entitled to this knowledge as a matter of statutory right. Appellants filed a motion to dismiss for failure to state a claim and because the relief sought cannot be awarded without violation of the first and fourteenth amendments to the United States Constitution and art. 2, §§ 24 and 25 of the Arkansas Constitution. The trial court denied the motion to dismiss without conducting a hearing on the constitutional issues. Appellees filed discovery requests seeking the same financial and business information which was the object of the lawsuit. The appellants challenged the propriety of the discovery request, but the trial court ordered them to comply. It is from that interlocutory order that this appeal is brought. Our jurisdiction is pursuant to Sup. Ct. R. 29(l)(a) and (k).

We grant relief from the interlocutory order and find that an evidentiary hearing is necessary to determine the merits of appellants’ claim of constitutional protection against ordered disclosure of church information. Accordingly, we remand to the trial court.

The religious beliefs of all citizens are zealously protected from government interference under both the state and federal constitutions. The Arkansas Constitution provides that “All men have a natural and indefeasible right to worship Almighty God according to the dictates of their own consciences; ... No human authority can, in any case or manner whatsoever, control or interfere with the right of conscience. . .” art. 2, § 24. In recognition of the fact that “[r]eligion, morality and knowledge [are] . . . essential to good government”, the General Assembly was instructed to enact suitable laws to protect every religious denomination. Art. 2, § 25.

We have strictly adhered to this absolute prohibition of any infringement upon religious beliefs. It necessarily follows that internal church disputes relating to the disclosure of church business should not be subject to the legal concern of this court. However, when the Sixth and Izard Church of Christ decided to incorporate, it submitted itself to certain corporate laws of this state, thus opening the door to examination of their present quarrel in a legal setting.

This appeal was taken from the court’s interlocutory order compelling discovery. Since the discovery sought the very records and financial information that were the object of the lawsuit, appellants refused to comply, arguing that to do so would be to decide the case on the merits.

It should first be noted that this appeal was properly taken since the interlocutory order in effect determines the action and prevents a judgment from which an appeal might be taken. Ark. Rules of App. P. Rule 2(a)(2). If appellants comply with the discovery order and the trial court concludes after the trial that appellees were not entitled to the information they sought, appellants could not be placed in their former condition. See Johnson v. Johnson, 243 Ark. 656, 421 S.W.2d 605 (1967), rehearing denied. Therefore, since we find the discovery order is the equivalent of a decision on the merits, the appellants need not release the information that is the subject of this lawsuit until a final ruling is obtained.

As to the motion to dismiss, the chancellor held that by virtue of the church taking advantage of the state’s laws, certain duties apply that have nothing to do with the constitution. This is not entirely correct. Certain statutory duties do apply, unless they conflict with a constitutional prohibition. The Arkansas law referred to by the chancellor was the statutory chapter on nonprofit corporations. Ark. Stat. Ann. §§ 64-1901 — 64-1921 (Repl. 1980). The appellees’ lawsuit is based on Ark. Stat. Ann. § 64-1913 which provides in pertinent part:

Each corporation shall keep correct and complete books and records of account. ... All books and records of a corporation may be inspected by any member for any proper purpose at any reasonable time.

It is clear that under § 64-1913 the appellees are not entitled to inspect the church’s records as a matter of right. Instead, they are allowed to so inspect upon a demonstration of a proper purpose. Since the complaint filed in this case contained allegations of abuse of power by the elders and impropriety in the selection of the board of directors, this threshold requirement is met.

The question now arises: Does the enforcement of statutory law, and in particular § 64-1913, override the religious doctrine, polity, or practice of the church as protected by the federal and state constitutions? Whether this action can be maintained at all is a close question. The appellants mount a vigorous argument that the tenets of the Church of Christ religion place authority for church administration solely in the hands of the elders and, pursuant to the dictates of their religion, the elders cannot be compelled to share this information with members of the congregation. Appellees argue with equal vigor that the Church of Christ is and has always been a congregational church and that as members of a congregational church, they have a right to inspect the records.

To claim the protection of the freedom of religion clauses of the U.S. and Arkansas Constitutions, the appellants’ position must be rooted in religious belief. Wisconsin v. Yoder, 406 U.S. 205, 215-16 (1972). The determination of what is a “religious belief’ is a delicate matter and state courts can only become involved in church disputes when “neutral principles” of law can be applied to resolve the dispute. Synanon Foundation, Inc. v. California, 444 U.S. 1307 (1979).

Although courts have no power to decide religious questions, that does not mean that courts will not assume jurisdiction over religious institutions. “Religious organizations do have temporal rights and duties with respect to properties and contracts which courts will recognize and enforce. . . Only with respect to these temporalities should courts recognize legal rights and duties and enforcement as limited to nonreligious policies.” Mount Zion Baptist Church et al. v. Second Baptist Church, 432 P.2d 328 (Nev. 1967).

Louisiana courts have considered this question and found that lawsuits can be maintained against incorporated churches for enforcement of a voting member’s statutory right to examine the records of the corporation. Bourgeois v. Landrum, 396 So.2d 1275 (La. 1981); Wilkerson v. Battiste, 393 So.2d 195 (La. App. 1980), rehearing denied.

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Bluebook (online)
706 S.W.2d 369, 288 Ark. 422, 1986 Ark. LEXIS 1825, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gipson-v-brown-ark-1986.