Moore v. Christ's Christian Fellowship Church, Inc.

875 N.E.2d 121, 172 Ohio App. 3d 398, 2007 Ohio 3095
CourtOhio Court of Appeals
DecidedJune 19, 2007
DocketNo. 06CA57.
StatusPublished
Cited by1 cases

This text of 875 N.E.2d 121 (Moore v. Christ's Christian Fellowship Church, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moore v. Christ's Christian Fellowship Church, Inc., 875 N.E.2d 121, 172 Ohio App. 3d 398, 2007 Ohio 3095 (Ohio Ct. App. 2007).

Opinion

Farmer, Presiding Judge.

{¶ 1} On June 29, 2006, appellants, Kenneth Moore and others, as members of the congregation of Christ’s Christian Fellowship Church, filed a derivative action against appellees, Christ’s Christian Fellowship Church, Inc., its directors and trustees, and the Gospel Lighthouse Ministries, Inc., claiming in part that *400 appellees committed financial misconduct, refused to provide an accounting, improperly converted corporate property, and interfered with the church’s ability to function as a religious entity.

{¶2} On August 4, 2006, appellees filed a motion for summary judgment, claiming that appellants did not have any legal standing to assert their claims. By judgment entry filed September 20, 2006, the trial court agreed and granted summary judgment to appellees.

{¶ 3} Appellants filed an appeal, and this matter is now before this court for consideration. Assignments of error are as follows:

{¶ 4} I. “The trial court erred in concluding that the case was ripe for summary judgment.”

{¶ 5} II. “The trial court erred in determining that the appellants were not members of the corporation.”

{¶ 6} III. “The trial court erred in determining that the appellants lacked standing to bring a derivative action or to otherwise raise the claims raised in this matter.”

{¶ 7} IV. “The trial court erred in concluding that the initial members designated in the articles of incorporation were the only members and permanent members of the corporation.”

{¶ 8} V. “The trial court erred in concluding that the plaintiffs have no interest in the corporation.”

Assignment of Error I, II, and III

{¶ 9} Appellants claim that the trial court erred in granting summary judgment for appellees as there exist genuine issues of material fact that should be heard by a jury. We disagree.

{¶ 10} Summary judgment motions are to be resolved in light of the dictates of Civ.R. 56, which was explained by the Supreme Court of Ohio in State ex rel. Zimmerman v. Tompkins (1996), 75 Ohio St.3d 447, 448, 663 N.E.2d 639:

{¶ 11} “Civ.R. 56(C) provides that before summary judgment may be granted, it must be determined that (1) no genuine issue as to any material fact remains to be litigated, (2) the moving party is entitled to judgment as a matter of law, and (3) it appears from the evidence that reasonable minds can come to but one conclusion, and viewing such evidence most strongly in favor of the nonmoving party, that conclusion is adverse to the party against whom the motion for summary judgment is made. State ex rel. Parsons v. Fleming (1994), 68 Ohio St.3d 509, 511, 628 N.E.2d 1377, 1379, citing Temple v. Wean United, Inc. (1977), 50 Ohio St.2d 317, 327, 4 O.O.3d 466, 472, 364 N.E.2d 267, 274.”

*401 {¶ 12} As an appellate court reviewing a granting of summary judgment, we must stand in the shoes of the trial court and review summary judgments on the same standard and evidence as the trial court. Smiddy v. Wedding Party, Inc. (1987), 30 Ohio St.3d 35, 30 OBR 78, 506 N.E.2d 212.

{¶ 13} In its judgment entry filed September 20, 2006, the trial court determined that appellants did not have standing to initiate a derivative action, because they were not members of the corporation:

{¶ 14} “Here, the articles of incorporation designate only Defendants Harry Hill, Margaret Hill, Connie Sue Hill and Carol Jane Hill [n.k.a. Ridgeway] as Trustees and members of the corporation and the Articles of Incorporation and the Code of Regulations invest only those Trustees/members of the corporation with the powers set forth in those documents. Said by-laws do not invest Plaintiffs with an ownership interest in the corporation or a right to the corporation’s assets. Thus, Plaintiffs have no standing to raise the claims which they’ve raised in this matter.

{¶ 15} “Moreover, R.C. 1702.14 provides:

{¶ 16} “ “Where neither the articles nor the regulations provide for members thereof as such, or where a corporation has in fact no members other than the directors, the directors shall, for the purposes of any statute or rule of law relating to corporations, be taken to be the members of such corporation, and they shall have all the rights and privileges of members; * * *.’

{¶ 17} “Thus, only Defendants Harry Hill, Margaret Hill, Connie Sue Hill and Carol Jane Hill [n.k.a. Ridgeway] are members of the corporation and have the rights the and (sic) privileges accorded to such members. Since Plaintiffs are not members of the corporation, they have no such rights and privileges regarding the assets of the Church.” (Emphasis sic.)

{¶ 18} Appellants argue that the corporation’s by-laws do not specify any designation or classification of members and that, therefore, they are voting members of the corporation pursuant to R.C. 1702.20(A), which states the following:

{¶ 19} “Except as otherwise provided in the articles or the regulations, each member, regardless of class, shall be entitled to one vote on each matter properly submitted to the members for their vote, consent, waiver, release, or other action.”

{¶20} In support of their claim of membership, appellants presented a “Certificate of Membership” attached to an August 24, 2006 affidavit of Kent Searle, an appellant herein. The certificate stated the following:

*402 {¶ 21} “This Certifies That Kent Searle has publicly confessed Jesus Christ as Lord and Saviour, and has been received into the full membership of the Christ’s Christian Fellowship Church of Lithopolis, Ohio

{¶ 22} “On this 7th day of December in the year of our Lord 1975.”

{¶ 23} The certificate was signed by Rev. Harry C. Hill as Pastor.

{¶ 24} In addition, the affidavit of Kent Searle claimed membership on the advisory board of the church. The affidavits of the other appellants state only that the affiants are members and volunteers.

{¶ 25} The Articles of Incorporation named trustees and members. The named trustees and members were Harry C. Hill, Margaret J. Hill, Connie Sue Hill, and Jane Carol Hill. The articles empowered the Board of Trustees “to adopt membership requirements and to admit additional members from time to time as they shall determine.”

{¶ 26} The Code of Regulations is silent on the issue of membership requirements, except to empower the trustees to “adopt such membership requirements as they determine appropriate and administer such membership requirements as they deem appropriate.” See Article 3.

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Bluebook (online)
875 N.E.2d 121, 172 Ohio App. 3d 398, 2007 Ohio 3095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-christs-christian-fellowship-church-inc-ohioctapp-2007.