Kirby v. Lexington Theological Seminary

426 S.W.3d 597, 38 I.E.R. Cas. (BNA) 212, 2014 WL 1512223, 2014 Ky. LEXIS 161, 97 Empl. Prac. Dec. (CCH) 45,059, 122 Fair Empl. Prac. Cas. (BNA) 1836
CourtKentucky Supreme Court
DecidedApril 17, 2014
DocketNo. 2012-SC-000519-DG
StatusPublished
Cited by33 cases

This text of 426 S.W.3d 597 (Kirby v. Lexington Theological Seminary) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirby v. Lexington Theological Seminary, 426 S.W.3d 597, 38 I.E.R. Cas. (BNA) 212, 2014 WL 1512223, 2014 Ky. LEXIS 161, 97 Empl. Prac. Dec. (CCH) 45,059, 122 Fair Empl. Prac. Cas. (BNA) 1836 (Ky. 2014).

Opinion

Opinion of the Court by

Chief Justice MINTON.

The ministerial exception, rooted in the First Amendment’s principles of religious freedom, is a well-settled doctrine applicable to employment disputes between religious institutions and employees serving in a ministerial capacity. Recently, in Hosanna-Tabor Evangelical Lutheran Church and School v. E.E.O.C.,1 the United States Supreme Court added constitutional imprimatur to the ministerial exception but provided little direction for its application. We accepted discretionary review of this employment-dispute case because it presents us with our first opportunity to deal squarely with the ministerial exception’s role in the law of Kentucky.

Jimmy Kirby was a tenured professor at Lexington Theological Seminary teaching Christian social ethics for fifteen years before the Seminary terminated his employment. Kirby challenged the validity of his termination by bringing this action against the Seminary for breach of contract, breach of implied covenants of good faith and fair dealing, and race discrimination. The trial court granted summary judgment for the Seminary, ostensibly on First Amendment grounds.

The Court of Appeals affirmed the trial court. Because we disagree with the reasoning employed and result reached by the Court of Appeals, we must now reverse. The analytical approach taken by the Court of Appeals, while adequately grounded in case law, does not provide a workable model for Kentucky courts.

Accordingly, today, in this opinion and in Kant v. Lexington Theological Seminary,2 we explicitly adopt the ministerial exception as applicable to employment claims — especially discrimination claims— asserted against a religious institutional employer by an employee who is directly involved in promulgating and espousing the tenets of the employer’s faith. In so doing, we align our jurisprudence with the United States Supreme Court, every federal circuit, and the states that have dealt with this issue since the Supreme Court issued its opinion in Hosanna-Tabor.

[602]*602We find Kirby to be a ministerial employee of the Seminary and, as such, subject to the ministerial exception as asserted by the Seminary. Despite this finding, however, we do not hold the ministerial exception to operate as a bar to Kirby’s contract claims against the Seminary. The contract claims involve solely the Seminary’s willing participation, within a religious context, in a contractual transaction between the two parties. The existence of a contract and its terms remain questions of material fact that are sufficient to defeat summary judgment and warrant further proceedings in the trial court.

I. FACTUAL AND PROCEDURAL BACKGROUND.

A. The Seminary.

Founded in 1865, originally as the College of the Bible on the campus of Transylvania University,3 Lexington Theological Seminary is “an accredited graduate theological institution of the Christian Church (Disciples of Christ).” The stated mission of the Seminary is “to prepare faithful leaders for the church of Jesus Christ and, thus, to strengthen the church’s participation in God’s mission for the world.” In executing its mission, the aim of the Seminary is “to prepare women and men of varied backgrounds and traditions for ordained and other forms of ministry.” Consistent with this mission and the tenets of the Christian Church (Disciples of Christ), the Seminary is intentionally ecumenical with nearly half of its enrollment coming from other Christian denominations.

Perhaps as a good business practice or perhaps because accreditation standards require it,4 the Seminary opted to put the policies, procedures, expectations, and other conditions of employment in writing for its faculty, staff, and other employees. Despite the Seminary’s argument to the contrary, with regard to faculty, the Faculty Handbook explicitly supersedes the Employee Handbook. The Faculty Handbook stated the fundamental responsibility of faculty5 “shall be to uphold the purpose of Lexington Theological Seminary to prepare faithful leaders for the Church of Jesus Christ, and, thus to strengthen the Church’s participation in God’s mission for the world.” And although there was no ordination requirement, faculty members were expected “to serve as models for [603]*603ministry” and, in doing so, “relate to students, staff, and faculty colleagues with integrity and respect.” Faculty members were mandated to attend all faculty meetings and participate in formal Seminary events, including orientation. Attendance for informal Seminary events was left to the discretion of the particular faculty member. Finally, faculty members were “expected” but not required to participate in Seminary worship services and convocations.

Of principal importance for this case, the Faculty Handbook also detailed the procedure for termination of tenured faculty. Proceedings to dismiss a tenured professor could only be instituted by the president, the dean, or a member of the faculty. “The only grounds for dismissal of a tenured faculty member are moral delinquency, unambiguous failure to perform the responsibilities outlined in this Handbook, or conduct detrimental to the Seminary.” Employed on an annual probationary basis, non-tenured faculty members may only be dismissed for cause, as well.

The Seminary began experiencing severe financial problems in 2009 amidst a nationwide economic downturn. During the period of July 2007 to January 2009, the Seminary saw its endowment shrink from roughly $25 million to $16 million.6 At that time, the Seminary had ten full-time professors, twenty-one other full-time staff members, and a number of part-time instructors.7 To survive this “tsunami of economic disasters,”8 the Seminary decided to abolish a number of faculty and staff positions. The Board of Trustees approved eliminating tenured faculty. And Kirby was among them. Before terminating Kirby’s employment, the Seminary offered him what it called a severance package. This severance package was an additional year’s employment with a year’s salary, conditioned upon Kirby’s release of all potential claims against the Seminary. Kirby declined the offer. Finally, the Seminary restructured its curriculum and mission in an attempt to weather the financial chaos, opting to “emphasize practical training for clergy in areas such as financial management, conflict resolution and the use of technology ... rather than ... theology and biblical studies.”9

B. Kirby’s Claims Against the Seminary and the Decisions Below.

Following his termination in 2009, Kirby filed this circuit court action against the Seminary. Kirby alleged breach of contract, breach of the implied duty of good faith and fair dealing, and discrimination based on race under Kentucky Revised Statutes (KRS) 344.040. Kirby also sought a declaratory judgment, alleging his termination constituted a breach of contract. The Seminary moved to dismiss the complaint or alternatively to grant summary judgment in its favor.

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Bluebook (online)
426 S.W.3d 597, 38 I.E.R. Cas. (BNA) 212, 2014 WL 1512223, 2014 Ky. LEXIS 161, 97 Empl. Prac. Dec. (CCH) 45,059, 122 Fair Empl. Prac. Cas. (BNA) 1836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirby-v-lexington-theological-seminary-ky-2014.