New Life Methodist Church v. Korean Methodist Church of the Americas, Jin Hi Cha

2020 COA 20, 474 P.3d 143
CourtColorado Court of Appeals
DecidedFebruary 6, 2020
Docket18CA1149, Korean
StatusPublished
Cited by1 cases

This text of 2020 COA 20 (New Life Methodist Church v. Korean Methodist Church of the Americas, Jin Hi Cha) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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New Life Methodist Church v. Korean Methodist Church of the Americas, Jin Hi Cha, 2020 COA 20, 474 P.3d 143 (Colo. Ct. App. 2020).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY February 6, 2020

2020COA20

No. 18CA1149, Korean New Life Methodist Church v. Korean Methodist Church of the Americas, Jin Hi Cha — Religious Organizations — Property; Constitutional Law — First Amendment — Freedom of Religion — Doctrine of Judicial Abstention — Neutral Principles of Law Analysis

As a matter of first impression, a division of the court of

appeals considers whether a local church submitted to the

authority of the national denomination and whether the polity

approach or neutral principles of law should be used to answer this

question. Relying on Bishop & Dioceses of Colorado v. Mote, 716

P.2d 85 (Colo. 1986), the division holds that neutral principles of

law should be applied to answer the submission question.

Because the district court properly applied neutral principles to the

hearing facts to conclude there was no submission, the division affirms the judgment. The division further denies the request for

attorney fees. COLORADO COURT OF APPEALS 2020COA20

Court of Appeals No. 18CA1149 El Paso County District Court No. 18CV31065 Honorable David Prince, Judge

Korean New Life Methodist Church, a Colorado non-profit corporation,

Plaintiff-Appellee,

v.

Korean Methodist Church of the Americas, a California non-profit corporation, and Jin Hi Cha,

Defendants-Appellants.

JUDGMENT AFFIRMED

Division I Opinion by JUDGE FREYRE Taubman and Pawar, JJ., concur

Announced February 6, 2020

Mulliken Weiner Berg & Jolivet P.C., Murray I. Weiner, Hilary A. Roland, Colorado Springs, Colorado; Weeks & Luchetta, LLP, Jeffrey L. Weeks, Colorado Springs, Colorado, for Plaintiff-Appellee

Nussbaum Speir PLLC, Ian Speir, Colorado Springs, Colorado, for Defendants- Appellants ¶1 The First and Fourteenth Amendments to the United States

Constitution preclude civil courts from resolving religious disputes

involving religious law and decisions of ecclesiastical tribunals,

including disputes involving church governance (polity approach).

See Serbian E. Orthodox Diocese v. Milivojevich, 426 U.S. 696, 708-

09 (1976). But when a dispute involves the ownership and control

of church property, our supreme court both permits and requires

civil courts to apply neutral principles of law in resolving them

(neutral principles approach). See Bishop & Diocese of Colo. v.

Mote, 716 P.2d 85, 96 (Colo. 1986). This approach includes

inquiring into whether the local church has submitted to the

authority of a national denomination. See id. at 100.

¶2 No Colorado court, however, has decided the questions

presented here — whether the local church actually surrendered its

control and submitted to the authority of the national

denomination, and whether the polity or neutral principles

approach should be used to answer this question. This dispute

between the local church, plaintiff, Korean New Life Methodist

Church, and the national denomination, defendants, Korean

Methodist Church of the Americas and Pastor Jin Hi Cha, arose

1 from the denomination’s attempt to retitle church property from the

local church’s to the denomination’s name, contrary to the local

church’s articles of incorporation, bylaws, and board resolutions.

¶3 We hold, consistent with Mote, that the submission to

authority question is one arising from the local church’s

organization and that neutral principles of general corporate law

must be applied to resolve it. Id. at 99. Therefore, we discern no

legal error in the district court’s decision to apply neutral principles.

As well, we discern no clear error in the district court’s application

of neutral principles to the evidence or in its finding that the local

church never ceded control or submitted to the denomination’s

authority. Accordingly, we affirm the judgment.

I. Background

A. Factual

¶4 In 1996, the local church began as a prayer group in the home

of founder Mr. Jong Kim. In February 1997, Mr. Kim incorporated

the prayer group as a nonprofit corporation named the Korean New

Life Church. The articles of incorporation named six people to serve

as the initial board of directors. As relevant here, Paragraph 4 of

the articles of incorporation, the dissolution paragraph, provided

2 that upon any dissolution, the board of directors should distribute

the church’s assets to nonprofit charitable corporations, municipal

corporations, or corporations for “the purposes of carrying on

nonprofit charitable purposes.”

¶5 Several months later, the board of directors passed a

resolution stating that the church “shall join the Korean Methodist

Church.” The resolution also changed the local church’s name from

Korean New Life Church to Korean New Life Methodist Church. The

church filed this name change with the Colorado Secretary of State.

¶6 The Korean Methodist Church (KMC) is a denomination based

in Seoul, South Korea. A geographic subdivision of the

denomination is the Korean Methodist Church of the Americas

(KMCA). The parties dispute whether the KMCA is part of the KMC.

The district court concluded that it need not resolve this dispute to

decide the submission question. For purposes of our analysis, we

presume that the KMCA is a geographic subdivision of the KMC,

and we refer to the entities collectively as “the denomination.”

¶7 The denomination is governed by rules provided in “The

Doctrines, Book of Discipline and Rules of the Korea [sic] Methodist

Church (2012)” (denomination rules). Among other things, the

3 denomination rules set forth the requirements for church

membership, church property registration with the denomination,

dues payments, mortgaging or selling local church property (which

requires denomination permission and approval), selecting a church

pastor, and general administrative control of the local church by the

pastor.

¶8 The denomination rules also define offenses, disciplinary

procedures, and church hierarchy. The rules group local churches

into districts, which are supervised and controlled by a district

superintendent. They also give the district superintendent the

authority to terminate a local church’s pastor.

¶9 As a nonprofit organization organized under Colorado law, the

local church board enacted bylaws to govern the church’s

administration and activities. 1 The bylaws provide for a “church

board” comprising the pastor, the assistant pastor, elders, and

selected deacons. The bylaws contain no reference to the

denomination or the denomination rules, but they provide the

district superintendent with “approval” authority over the board’s

1These bylaws are not dated but refer to the local church by its new name.

4 selection of a pastor. The bylaws are silent about the

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2020 COA 20, 474 P.3d 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-life-methodist-church-v-korean-methodist-church-of-the-americas-jin-coloctapp-2020.