Word of Life Ministry, Inc. v. Miller

778 So. 2d 360, 2001 WL 23004
CourtDistrict Court of Appeal of Florida
DecidedJanuary 11, 2001
Docket1D99-2541
StatusPublished
Cited by4 cases

This text of 778 So. 2d 360 (Word of Life Ministry, Inc. v. Miller) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Word of Life Ministry, Inc. v. Miller, 778 So. 2d 360, 2001 WL 23004 (Fla. Ct. App. 2001).

Opinion

778 So.2d 360 (2001)

The WORD OF LIFE MINISTRY, INC., a/k/a Word of Life Church, Inc., a Florida non-profit corporation; Jennifer T. Porter; James R. Porter, III; Elaine Meadows; Stephen C. Meadows; Thomas H. Karst, Jr.; Norman D. McCluskey; Mary E. Andreas; Norma H. Hughes; William B. Cook, III; Raymond O. Borne; Maria Sorenson; and H. Scott Sorenson; individually, Appellants,
v.
Marcus MILLER, Dolores Miller, and Joan Belavitch, Appellees.

No. 1D99-2541.

District Court of Appeal of Florida, First District.

January 11, 2001.
Rehearing Denied February 16, 2001.

*361 S. Perry Penland, Jr., and Paul S. Boone, Jacksonville, for Appellants.

Adam G. Adams, III, and Courtney K. Grimm of Adams & Grimm, P.A., Jacksonville, for Appellees.

BENTON, J.

Along with The Word of Life Ministry, Inc., a non-profit corporation (the Church), individual plaintiffs who are members of the congregation appeal a final summary judgment entered in favor of Marcus Miller and Dolores Miller, the husband and wife whom the Church employed as ministers, and Joan Belavitch, the bookkeeper. We affirm the judgment insofar as it dismisses the individual plaintiffs because *362 they lack standing to sue as individuals, and also insofar as it exonerates Joan Belavitch. But we reverse the final summary judgment entered against the Church, the corporate plaintiff, and in favor of the Millers, and remand for additional proceedings consistent with this opinion.

Since the present case implicates neutral legal principles only, precedent supports judicial resolution of the parties' dispute over corporate assets, the corporation's religious purposes notwithstanding. See generally Houseman v. Summit Christian Sch. of Palm Beach County, Fla., Inc., 762 So.2d 979, 980 (Fla. 4th DCA 2000); Doe v. Evans, 718 So.2d 286, 288 (Fla. 4th DCA 1998); Hemphill v. Zion Hope Primitive Baptist Church of Pensacola, Inc., 447 So.2d 976, 977 (Fla. 1st DCA 1984); Umberger v. Johns, 363 So.2d 63, 65 (Fla. 1st DCA 1978); Rolle v. Judge, 310 So.2d 42, 42 (Fla. 4th DCA 1975); cf. Kond v. Mudryk, 769 So.2d 1073, 1076 (Fla. 4th DCA 2000).

[T]he doctrine of either side is ... of no moment here. The courts are not concerned with the articles of faith of either, nor with the question as to whether or not the articles of faith or the religious doctrines of either are respected and observed.
The only question which is sought to be presented here which may be addressed to the courts is in regard to the right to control the church property. See Hackney v. Vawter, 39 Kan. 615, 18 P. 699; Fulbright v. Higginbotham, 133 Mo. 668, 34 S.W. 875; State v. Farris, 45 Mo. 183; Prickett v. Wells, 117 Mo. 502, 503, 24 S.W. 52; Bates v. Houston, 66 Ga. 198.

Partin v. Tucker, 126 Fla. 817, 819, 172 So. 89, 89 (Fla.1937). The parties have asked neither us nor the trial court to "become entangled in essentially religious controversies or intervene on behalf of groups espousing particular doctrinal beliefs." Serbian Eastern Orthodox Diocese v. Milivojevich, 426 U.S. 696, 709, 96 S.Ct. 2372, 49 L.Ed.2d 151 (1976). The dispute arose when, in conjunction with their retirement from the Church, Mr. and Mrs. Miller sought to have the Church's assets transferred to other corporations. At issue are rights to expensive real estate (which may by now have been transferred) and liquid assets worth approximately two million dollars.

Incorporated as The Word of Life Ministry, Inc., the Church was organized under articles of incorporation which provided for amendment only by a two-thirds vote of the members of the corporation. The articles of incorporation listed seven persons as members of the original board of directors (Christopher Martin, Sidney Clark, Mildred Clark, Thomas Barket, Barbara Barket, Joe Hughes, and Norma Hughes) and specified that board members "shall be members of the corporation." The articles of incorporation named nobody else a member of the corporation.

Membership in the congregation should not be confused with membership in the corporation. As the learned trial judge recognized, most members of the congregation were in legal contemplation strangers to the corporation. No use has ever been made of article XIII, section 2 of the original by-laws,[1] which outlines a procedure for proposing and approving new members of the corporation ("members shall be elected by a majority vote of the entire Board of Directors"). The final summary judgment found "that there have never been elections of any form adding new members to the corporation."

*363 Under the bylaws, the members of the corporation are to elect directors at annual meetings. A corporation must act in accordance with its articles of incorporation and duly adopted by-laws. See Yarnall Warehouse & Transfer v. Three Ivory Bro. Moving Co., 226 So.2d 887, 890 (Fla. 2d DCA 1969) ("The corporation and its directors and officers are bound by and must comply with the charter and bylaws."). At a meeting on May 24, 1978, despite the absence of a majority of the members of the corporation,[2] Dolores Nassiff (later Mrs. Miller) was purportedly elected corporate president and director and Mr. Miller was purportedly elected corporate treasurer and director. (At the same meeting, Ms. Belavitch was designated corporate secretary and bookkeeper, but not director.)

Even if those voting on May 24, 1978, had been authorized to elect directors, the elections were void for failure to observe restrictions imposed by the articles of incorporation which required directors to be members of the corporation.[3]See S & T Anchorage v. Lewis, 575 So.2d 696, 698 (Fla. 3d DCA 1991) ("The Assignment ... and ... subsequent ratification ... are invalid because they ... are ultra vires acts."); Wolfson v. Cary, 488 So.2d 864, 869 (Fla. 3d DCA 1986) (holding void "shares issued in excess of the amount of common shares authorized in [the] articles of incorporation").

Approximately a year later, on May 14, 1979, those present[4] at a meeting the minutes described as a meeting of the board— not the specially noticed meeting of a majority of the corporation's members[5] required by the articles of incorporation— purported to approve an amendment to the articles of incorporation. Joe Hughes, who remained a member and director[6] of *364 the corporation despite his resignation as vice-president the following day, was apparently the only member of the corporation in attendance.

The amendment would have changed the name of the corporation to Word of Life Church, Inc. and would have nullified the original articles of incorporation and by-laws. It also would have created a council of elders and vested this council with complete control over the affairs of the Church, including the ability to dissolve the corporation and distribute its assets. The amendment named Mr. and Mrs. Miller and Ms. Belavitch elders and officers.[7] Because at most a single member of the corporation voted for the amendment, however, the amendment was ultra vires and of no legal effect. See AGR Halifax Fund, Inc. v. Fiscina, 743 A.2d 1188

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Bluebook (online)
778 So. 2d 360, 2001 WL 23004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/word-of-life-ministry-inc-v-miller-fladistctapp-2001.