Peters Creek United Presbyterian Church v. Washington Presbytery

90 A.3d 95
CourtCommonwealth Court of Pennsylvania
DecidedApril 30, 2014
StatusPublished
Cited by10 cases

This text of 90 A.3d 95 (Peters Creek United Presbyterian Church v. Washington Presbytery) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peters Creek United Presbyterian Church v. Washington Presbytery, 90 A.3d 95 (Pa. Ct. App. 2014).

Opinion

OPINION BY

President Judge PELLEGRINI.1

I. INTRODUCTION

These consolidated cases involve a dispute over the control of a nonprofit corpo[101]*101ration and church property, including the church building, land and personal property. Internecine battles of this kind have existed for hundreds of years in our jurisprudence. See Baker v. Fales, 16 Mass. 488 (1820) (resolving the Dedham Church property dispute). Such disputes are not unique in the Commonwealth and always entail much emotion and often sadness among the competing factions. The dispute here is between the majority of the members (“Majority”) of the non-profit corporation named Peters Creek United Presbyterian Church (“Peters Creek Church”) and a minority faction of the members of Peters Creek Church (“Minority”) and the Washington Presbytery of Pennsylvania (“Washington Presbytery”), which is a presbytery of the Presbyterian Church (U.S.A.) (“PCUSA”). Over 40 members of the Minority are named individually as appellants.

On November 4, 2007, the Majority voted to disaffiliate Peters Creek Church from the Washington Presbytery and the PCUSA, to affiliate with the Evangelical Presbyterian Church (“EPC”), and to amend the corporate bylaws to replace all references to the PCUSA Constitution with references to the EPC Constitution. Before the corporation’s vote, the Majority had filed, on May 9, 2007, an action against the Washington Presbytery in the Washington County Court of Common Pleas (“trial court”) to quiet title to real property and for declaratory judgment regarding personal property (Civil Action No. 2007-2941). The Majority also sought a preliminary injunction to prevent the Washington Presbytery from taking over the operation of the local congregation. The trial court entered the injunction, but it was later dissolved by agreement of the parties after their attempts at reconciliation had failed. The Washington Presbytery answered and brought counterclaims, seeking control of the property and alleging improper corporate acts. On August 29, 2008, the Minority filed a separate shareholder derivative action against the Majority (Civil Action No. 2008-7967). The two actions were later consolidated.2

The Washington Presbytery and the Minority (collectively, “Appellants”) appeal from two orders of the trial court. In the first order, entered October 1, 2009, in case No. 2007-2941, the trial court resolved cross-motions for summary judgment regarding, inter alia, control of the property, ruling that Peters Creek Church did not hold its property in trust for the Washington Presbytery or the PCUSA. (Appeal docketed at No. 1044 C.D. 2011). In the second order, entered March 81, 2010, in case No. 2008-7967, the trial court resolved cross-motions for summary judgment regarding, inter alia, control of the non-profit corporation, ruling that the November 4, 2007 vote to disaffiliate was proper, and that control of Peters Creek Church is vested in the Majority and not in the Minority or the Washington Presbytery. (Appeal docketed at No. 1045 C.D. 2011).

Appellants filed their appeals in Superior Court, which transferred the cases to this Court by order of June 11, [102]*1022011.3 There are three issues before us.4 First, whether the trial court erred by not enforcing the Washington Presbytery’s determination that the Minority and not the Majority was the “True Church.” Second, whether the trial court erred by holding that Peters Creek Church property was not encumbered by a trust for the Washington Presbytery and the PCUSA. And third, whether the trial court erred by not nullifying the Majority’s vote of November 4, 2007, to amend the corporate bylaws and disaffiliate from the Presbytery and the PCUSA.5

II. BACKGROUND

Peters Creek Church was founded in the 1790s as a Presbyterian church. It was incorporated as a non-profit corporation in 1931 under the name “Peters Creek United Presbyterian Church of Peters Township, Washington County, Pennsylvania.” (1931 Charter at 1, Reproduced Record (R.R.) at 15a). The charter states the purpose of the corporation is “the worship of Almighty God according to the faith, doctrine, discipline and usages of the United Presbyterian Church of North America.” (Id.). At the time of incorporation, Peters Creek Church was affiliated with the “United Presbyterian Church in North America” (“UPCNA”), the predecessor of the PCUSA. In 1958, the UPCNA merged into the “United Presbyterian Church in the United States of America” (“UPCUSA”). In 1983, that entity merged to become what is currently named the PCUSA.6 Peters Creek Church has been affiliated with the PCUSA since the PCU-SA’s creation in 1983, and has been affiliated since its incorporation in 1931 with the PCUSA’s predecessors.

[103]*103On June 3, 2001, Peters Creek Church voted to amend its bylaws (1) to become a “particular” congregation of the PCUSA, (2) to recognize that the provisions of the Constitution of the PCUSA are obligatory on Peters Creek Church and its members, and (3) to incorporate into its bylaws the mandatory provisions of the PCUSA Book of Order:

Article I, Name and Denominational Relationship

This church, incorporated under the laws of the Commonwealth of Pennsylvania, and known as the Peters Creek United Presbyterian Church, being a particular congregation of the Presbyterian Church (U.S.A.), recognizes that the Constitution of said church is, in all its provisions, obligatory upon it and its members. Nothing in these bylaws shall prevail over the Constitution of said church nor the charter of this corporation. These bylaws shall be considered to include mandatory provisions and requirements on local churches set forth in the Book of Order of the [PCUSA] whether or not incorporated by specific reference.

(June 3, 2001 Bylaws, Art. I, attached to Washington Presbytery’s Preliminary Objections, Jan. 4, 2008) (emphasis added).7

Peters Creek Church also amended its bylaws to prohibit further amendments that were inconsistent with the PCUSA Constitution and Book of Order:

Article X, Amendments
These bylaws may be amended subject to the provisions of the charter of this corporation, the laws of the Commonwealth of Pennsylvania, and the Constitution and Book of Order of the Presbyterian Church (U.S.A.), at any meeting of the congregation or corporation called for that purpose, by a vote of not less than a majority of those present entitled to vote.

(Id., Art. X) (emphasis added).

Since 1983; the Book of Order has contained the following express trust clause:

All property held by or for a particular church, a presbytery, a synod, the General Assembly, or the Presbyterian Church (U.S.A.), whether legal title is lodged in a corporation, a trustee or trustees, or an unincorporated association, and whether the property is used in programs of a particular church or of a more inclusive governing body or retained for the production of income, is held in trust nevertheless for the use and benefit of the Presbyterian Church (U.S.A.).

Book of Order, G-8.0201 (the “Trust Clause”) (R.R. at 932a).

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