in Re Texas Conference of Seventh-Day Adventists, Southwestern Union Conference Corporation of Seventh-Day Adventists, Texas Conference Association of Seventh-Day Adventists, and Alice Cash

Court of Appeals of Texas·Decided July 21, 2022·No. 02-22-00208-CV·Published

Opinion

In the

Court of Appeals

Second Appellate District of Texas at Fort Worth

No. 02-22-00208-CV

IN RE TEXAS CONFERENCE OF SEVENTH-DAY ADVENTISTS, SOUTHWESTERN UNION CONFERENCE CORPORATION OF SEVENTH-DAY ADVENTISTS, TEXAS CONFERENCE ASSOCIATION OF SEVENTH-DAY ADVENTISTS, AND ALICE CASH, Relators

Original Proceeding

48th District Court of Tarrant County, Texas Trial Court No. 048-313499-19

Before Kerr, Womack, and Wallach, JJ.

Opinion by Justice Wallach

OPINION

Relators the Texas Conference of Seventh-Day Adventists (the Conference), the Southwestern Union Conference Corporation of Seventh-Day Adventists (the Union), the Texas Conference Association of Seventh-Day Adventists (the Association), and Alice Cash (Cash) seek a writ of mandamus compelling the trial court to (1) vacate its April 29, 2022 order denying their motion to reconsider and (2) grant their plea to the jurisdiction. Because we hold that the ecclesiastical abstention doctrine applies, we will conditionally grant Relators’ requested relief.

I. The Parties

The real party in interest is Fort Worth Northwest Seventh-Day Adventist Church (the Northwest Church), which claims to be a religious nonprofit organization having its primary place of worship in Tarrant County, Texas. See Tex. Bus. Orgs. Code Ann. §§ 252.001–.018. Under the Seventh-Day Adventist Church Manual, it is—or was—a “local church,” that is, “[a] group of members in a defined location that has been granted, by the constituency of a conference in session, official status as a church.”1 Cash was a treasurer for the Northwest Church. Whether she remains the Northwest Church’s treasurer is disputed. The Conference is a “local conference,” which, according to the Church Manual, is an organized “group of local churches[]

1 Our record contains the nineteenth edition of the Church Manual.

within a defined geographical area.” The Union is a “union conference,” which, again according to the Church Manual, is a “group of conferences[ ] within a defined geographical area.” Where the Association fits in the hierarchy or what its role is within that hierarchy is not clear. 2 For this opinion’s purposes, to simplify the discussion, we refer to the dispute as being between the Northwest Church and the Conference—the Northwest Church’s immediate hierarchical authority. The Northwest Church appears to have sued the Union, the Association, and Cash because of their entanglement in the dispute between the Church and the Conference following the Conference’s termination of the Northwest Church’s pastor.

II. The Northwest Church’s Grievance Against the Conference We rely on the Northwest Church’s first amended petition to define the nature of the dispute between it and the Conference.

Joe Gresham became the Northwest Church’s pastor in 1992 and remained its pastor for over twenty-six years. According to the Northwest Church, in addition to being its pastor, Gresham was also the pastor of the Weatherford Seventh-Day Adventist Church (the Weatherford Church).

2 The Church Manual also describes the General Conference, which “represents the worldwide expression of the Church.” The General Conference has regional offices known as “divisions of the General Conference.”

Around 2002, however, the Conference removed Pastor Gresham as the Weatherford Church’s pastor and cut his pay in half. To supplement Pastor Gresham’s pay, the Northwest Church created a special fund. The Northwest Church forwarded these funds to the Conference, which then made the requisite withholdings; the Conference’s payroll department then paid the balance to Pastor Gresham. Subsequently, in 2010, the Conference reinstated Pastor Gresham as the Weatherford Church’s pastor. The Conference did not, however, increase Pastor Gresham’s pay.

According to the Northwest Church, in 2013, the Conference forced Pastor Gresham to retire with the understanding that he would continue to pastor both churches. In return, Pastor Gresham was supposedly to receive a stipend. The stipend, however, never materialized, and when Pastor Gresham inquired about it, the Conference purportedly asserted that he was mistaken about any stipend. Despite the misunderstanding, Pastor Gresham continued to pastor both churches.

In December 2018, the Conference terminated Pastor Gresham “based on noncompliance with NAD/TXC policies.”3 The Northwest Church is not disputing Pastor Gresham’s termination.4 Like falling dominoes, a series of events followed.

3 The noncompliance was with the policies of the North American Division and the Texas Conference.

4 The Church Manual provides, “Pastors or assistant pastors are not nominated or elected to such positions by the church. Their connection with the church is by

After Pastor Gresham’s termination, the Northwest Church dissolved its existing governing board and, in January 2019, unanimously elected a new governing board. The newly elected board then voted to dissolve Pastor Gresham’s special fund, to allow anyone who had contributed to the fund to withdraw their offerings by January 31, 2019, and to give any remaining funds to Pastor Gresham.

One day before the January 31, 2019 deadline, however, according to the Northwest Church, the Conference “confiscated [the Northwest Church’s] finances.” The Northwest Church alleged that Cash, the treasurer under the previous Northwest Church’s governing board (but whose name had not been removed from the Northwest Church’s bank account), had written a check payable to the Conference that effectively exhausted the Northwest Church’s account. The Northwest Church maintains that all the funds belonged to it, not to the Conference.

Apparently in response to this move, the Northwest Church’s governing board then voted to close the Northwest Church’s savings account in the Union so that it could continue to operate and pay bills. Complying with the Northwest Church’s wishes, the Union wrote a check payable to the Northwest Church, but when the Northwest Church tried to deposit the check, the Northwest Church discovered that the Conference had placed a “stop payment” on it.

appointment of the conference committee, and such appointments may be changed at any time.”

In addition to losing access to its funds, the Northwest Church also lost access to its place of worship. When the Northwest Church’s clerk and head deacon went to the church building on February 21, 2019, they encountered a locksmith changing the locks along with representatives from the Conference. The Northwest Church lamented, “To date, [the Northwest Church’s] members, who built and paid for the church, remain locked out of their place of worship and above each door a sign reads: ‘POSTED — NO TRESPASSING — KEEP OUT.’”

The Northwest Church sued the Conference and sought injunctive relief, declaratory relief, damages for theft of property, damages for conversion, damages for money had and received, exemplary damages, and attorney’s fees. Within its petition, the Northwest Church acknowledged that it was suing “its parent organizations.” And it based its complaints on the Conference’s failure to follow the Church Manual. Specifically, it alleged, “[The Northwest Church] will further show that the nonsecular provisions of the [Church Manual] are binding upon [the Northwest Church] and [the Conference] and provide that the right to ownership and use of the subject local church funds and personal property is vested in [the Northwest Church].”5 The Conference filed an answer that it later amended three times. On March 4, 2020, it filed a plea to the jurisdiction and, on June 19, 2020, an amended plea to the

5 “Nonsecular” is defined as “[r]elating to or involving religious or spiritual matters.” Oxford English Dictionary, https://www.lexico.com/en/definition/ nonsecular (last visited July 13, 2022).

jurisdiction. On July 28, 2020, the trial court denied the Conference’s amended plea to the jurisdiction.

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in Re Texas Conference of Seventh-Day Adventists, Southwestern Union Conference Corporation of Seventh-Day Adventists, Texas Conference Association of Seventh-Day Adventists, and Alice Cash (in Re Texas Conference of Seventh-Day Adventists, Southwestern Union Conference Corporation of Seventh-Day Adventists, Texas Conference Association of Seventh-Day Adventists, and Alice Cash) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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