Pilgrim's Rest Baptist Church v. Arthur Pearson Sr

310 Mich. App. 318
CourtMichigan Court of Appeals
DecidedApril 23, 2015
DocketDocket 318797 and 319571
StatusPublished
Cited by8 cases

This text of 310 Mich. App. 318 (Pilgrim's Rest Baptist Church v. Arthur Pearson Sr) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pilgrim's Rest Baptist Church v. Arthur Pearson Sr, 310 Mich. App. 318 (Mich. Ct. App. 2015).

Opinion

PER CURIAM.

In Docket No. 318797, defendant/ counterplaintiff-appellant/cross-appellee Arthur Pearson, Sr. (defendant Pearson) appeals the trial court’s October 7, 2013 order dismissing his counterclaims under MCR 2.116(C)(8) for being nonjusticiable. Plaintiffs/counterdefendants-appellees/cross-appellants Pilgrim’s Rest Baptist Church, Nathan Mayfield, and Stephon Blackfield (plaintiffs) cross-appeal the same order, which also dismissed their claims under MCR 2.116(C)(8) for being nonjusticiable. In consolidated case Docket No. 319571, plaintiffs/counterdefendantsappellants/cross-appellees and plaintiffs-appellants/ cross-appellees (collectively referred to as “pastor’s supporters”) appeal the trial court’s November 21, 2013 order that dismissed their claims under MCR 2.116(C)(8). The defendants-appellees/cross-appellants and defendants/counterplaintiffs-appellees/cross-appellants in the consolidated case (collectively referred to as “pastor’s opponents”) cross-appeal the same order. We affirm in part, reverse in part, and remand for further proceedings.

Plaintiff Pilgrim’s Rest Baptist Church is an ecclesiastical corporation. In 2011, defendant Pearson was the pastor and president of Pilgrim’s Rest. In April 2011, the board of trustees and board of deacons became aware of defendant Pearson’s authorizing a raise for himself. Between July 6, 2011, and October 13, 2011, defendant Pearson admitted that on numerous occasions he gave himself raises, used church credit cards for nonchurch purposes, and paid himself monetary honorariums, all without either board’s approval or authorization.

After the October 13, 2011 meeting, plaintiffs Blackwell and Mayfield hired Plante Moran to analyze the *322 church finances. On Sunday, October 31, 2011, the board of trustees and the board of deacons gave public notice to the congregation of Pilgrim’s Rest of the status of the investigation of defendant Pearson and of a November 13, 2011 vote to terminate his employment. At this vote, members had voted to retain defendant Pearson as pastor. When the accusations against defendant Pearson arose, the church members began to take sides and formed a pro-defendant Pearson faction and an anti-defendant Pearson faction.

On December 23, 2011, Plante Moran issued a preliminary finding report that demonstrated that, between 2008 and 2010, more than $237,000 had been removed from Pilgrim’s Rest Baptist Church’s bank accounts through questionable transactions. The majority of these transactions were for the benefit of defendant Pearson, his wife, and a former church secretary. On December 27, 2011, the board of trustees, allegedly exercising its right as board of directors, voted to suspend defendant Pearson with pay. On December 30, 2011, the Kent County Prosecutor’s office authorized an arrest warrant for defendant Pearson on one count of embezzlement. Defendant Pearson later pleaded nolo contendere to a charge of embezzling more than $50,000 but less than $100,000 and was ordered to pay restitution.

On January 1, 2012, the pastor’s supporters held a board of directors meeting, at which they claim the pastor’s opponents maliciously tried to break up the vote for a board of directors. The pastor’s opponents question the legitimacy of the board of directors that was voted in by the pastor’s supporters. After this meeting, two boards of directors each began asserting that it was the legitimate board of directors.

*323 The trial court concluded that all the claims from both cases were nonjusticiable under MCR 2.116(C)(8) because of the ecclesiastical abstention doctrine. On appeal, the parties address the merits of the claims. To the extent that the claims are nonjusticiable, the arguments on the merits are irrelevant. To the extent that the claims are justiciable, it is proper that the merits of those claims be addressed first by the trial court, and not this Court. Therefore, this Court will only address whether the claims are justiciable, and we will not address the merits of the claims.

“Whether subject-matter jurisdiction exists is a question of law for the court.” Dep’t of Natural Resources v Holloway Constr Co, 191 Mich App 704, 705; 478 NW2d 677 (1991). “Accordingly, the issue is reviewed de novo.” Id.

“It is well settled that courts, both federal and state, are severely circumscribed by the First and Fourteenth Amendments to the United States Constitution and art 1, § 4 of the Michigan Constitution of 1963 in resolution of disputes between a church and its members.” Maciejewski v Breitenbeck, 162 Mich App 410, 413-414; 413 NW2d 65 (1987). “Such jurisdiction is limited to property rights which can be resolved by application of civil law.” Id. at 414. “Whenever the court must stray into questions of religious doctrine or ecclesiastical polity the court loses jurisdiction.” Id. “Religious doctrine refers to ritual, liturgy of worship and tenets of the faith.” Id. “Polity refers to organization and form of government of the church.” Id. “Under the ecclesiastical abstention doctrine, apparently derived from both First Amendment religion clauses, ‘civil courts may not redetermine the correctness of an interpretation of canonical text or some decision relating to government of the religious polity.’ ” Smith v *324 Calvary Christian Church, 462 Mich 679, 684; 614 NW2d 590 (2000), quoting Paul v Watchtower Bible & Tract Society of New York, Inc, 819 F2d 875, 878 n 1 (CA 9, 1987).

Defendant Pearson’s counterclaims include breach of contract, promissory estoppel and unjust enrichment, fraud, tortious interference with a contract, intentional infliction of emotional distress, and civil conspiracy. But all of defendant Pearson’s claims as pleaded refer to the employment contract between defendant Pearson and the church. We affirm the trial court’s summary disposition of these claims. “When the claim involves the provision of the very services ... for which the organization enjoys First Amendment protection, then any claimed contract for such services likely involves its ecclesiastical policies, outside the purview of civil law.” Dlaikan v Roodbeen, 206 Mich App 591, 593; 522 NW2d 719 (1994).

Defendant Pearson relies on Vincent v Raglin, 114 Mich App 242; 318 NW2d 629 (1982), for the proposition that if it was not the “action of the church” at issue, the ministerial exception and ecclesiastical abstention doctrine are inapplicable. Defendant Pearson’s reliance on Vincent is misplaced because the Court in Vincent simply determined whether the church had taken a certain course of action, and here the determination would be whether the church exceeded its authority in acting, which is nonjusticiable because it would require the court to determine if the church violated its own policy.

Therefore, because determining whether the board of trustees had the authority to suspend and eventually terminate defendant Pearson would require determinations of religious polity, the civil courts do not have jurisdiction. Additionally, the claims brought by *325

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310 Mich. App. 318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pilgrims-rest-baptist-church-v-arthur-pearson-sr-michctapp-2015.