Zimmerman v. Board of Publications of the Christian Reformed Church, Inc.

598 F. Supp. 1002, 11 Media L. Rep. (BNA) 1545, 1984 U.S. Dist. LEXIS 21394
CourtDistrict Court, D. Colorado
DecidedDecember 7, 1984
DocketCiv. A. No. 83-JM-211
StatusPublished
Cited by6 cases

This text of 598 F. Supp. 1002 (Zimmerman v. Board of Publications of the Christian Reformed Church, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zimmerman v. Board of Publications of the Christian Reformed Church, Inc., 598 F. Supp. 1002, 11 Media L. Rep. (BNA) 1545, 1984 U.S. Dist. LEXIS 21394 (D. Colo. 1984).

Opinion

ORDER

JOHN P. MOORE, District Judge.

This matter is before me on defendants’ motion for summary judgment. Plaintiff’s complaint asserts claims in contract, for violation of the antitrust laws, and for libel. Defendants seek summary judgment on all three of plaintiff’s claims. The issues raised here have been fully briefed and the matter is ripe for determination. Jurisdiction is based on 28 U.S.C. § 1332 as well as § 1331.

Plaintiff is the trustee in bankruptcy for Center of Hope Church (COH) and three affiliated organizations, Center of Hope [1005]*1005Foundation, Center of Hope Retirement Center, Inc. and Center of Hope Enterprises, Inc. Defendants are the Christian Reformed Church in North America, Inc. (CRCNA); the Board of Publications of the Christian Reformed Church, Inc.; Andrew Kuyvenhoven, editor of The Banner a weekly religious news magazine published by the defendant Board of Publications of the Christian Reformed Church, Inc.; and Sandra L. Vander Zicht, assistant editor of The Banner.

The complaint arises out of two separate incidents. The first occurred during August and September 1980 when the defendant Board of Publications imposed conditions on the further publication in The Banner of advertisements in which the Center of Hope solicited the purchase of unsecured promissory notes. Plaintiff’s first and second claims for relief arise out of this incident, and are against the Board of Publications and the Christian Reformed Church. Plaintiff alleges that the Board’s refusal to continue publication of the promissory note advertisements gives rise to claims for breach of contract (first claim for relief) and also violates sections 1 and 2 of the Sherman Act, 15 U.S.C. § 1 (1982), and Colo.Rev.Stat. § 6-4-101 (second claim for relief).

The second incident occurred on February 8, 1982 when The Banner published an article entitled “Former C.R.C. Complex in Trouble,” and concerning the Center of Hope Church and its affiliates. With respect to the February 8, 1982 article, plaintiff has brought a defamation claim against the Board and the journalist, Vander Zicht, who wrote the article as well as the editor, Kuyvenhoven, who allowed the article to be published (third claim for relief).

Plaintiff in his fourth claim for relief alleges that defendants’ conduct, in both incidents, was outrageous and that such “outrageous conduct” entitles plaintiff to compensatory as well as exemplary damages. Plaintiff’s fourth claim for relief was dismissed as to the defendant CRCNA on the ground that, under Colorado law, the plaintiff corporations are incapable of suffering the “severe emotional distress” necessary to establish the tort of outrageous conduct. Zimmerman v. Board, Minute Order dated September 16, 1983. The other defendants now ask that plaintiff’s fourth claim for relief be dismissed as to them.

I.

The Center of Hope Church was previously known as Fairview Christian Reformed Church. In early 1973, Rev. A1 Haan became its pastor. By 1979 Fair-view’s name had been changed to the “Center of Hope”; it had purchased twelve acres of land in Westminster, Colorado; built a church and two other multipurpose structures on the property; and had begun several capital producing programs, including day care centers, bookstores, employment agencies, and the marketing of energy saving devices. . To accomplish these ambitious goals, three affiliated corporations were created: Center of Hope Foundation, Center of Hope Enterprises, and the Center of Hope Retirement Center. The Center of Hope Foundation, a Colorado not-for-profit corporation, was created to administer the Church’s business and fund raising activities. Center of Hope Enterprises,' Inc., a Colorado for-profit corporation, was created to operate the capital producing programs mentioned above. Lastly, Center of Hope Retirement Center, Inc., was established to develop a retirement home on church property.

The Center of Hope Church and its affiliated organizations raised the capital needed to finance their activities through a method of financing that had become popular within the Christian Reformed Church: the running of advertisements for unsecured promissory notes in the CRCNA magazine, The Banner. The Center of Hope and the Center of Hope Foundation placed promissory note advertisements for publication in The Banner from 1974 until August 1980. The advertisements contained a general description of the Center of Hope’s church buildings and church related activities, and indicated what rate of [1006]*1006interest would be paid on funds invested. According to Rev. Haan, the Center of Hope organizations raised close to three million dollars from the selling of promissory notes during this period.

During July and August, 1980, The Banner received copy for two promissory note advertisements, one from Center of Hope Enterprises offering a “dry-vent heat retriever,” and the other from the Center of Hope Foundation announcing the opening of several Center of Hope Family Centers. These ads were never published. Instead, on August 12, 1980, A. James Heynan, executive director of the defendant Board of Publications of the CRCNA, sent a letter to Rev. Haan indicating that he was declining to publish both ads on the ground that he felt that publication of these advertisements might impinge on the integrity of The Banner.

The August 12, 1980 letter provided that Mr. Heynan would reconsider his decision not to publish these ads if sufficient corporate and financial documentation were forwarded to him, and this material alleviated his fears as to the financial stability of the Center of Hope. The letter also provided that Mr. Heynan’s decision could be appealed, in writing, to the President of the Board of Publications, Rev. Alvin Hbksbergen.

In response to Mr. Heynan’s letter, several actions were undertaken on behalf of the Center of Hope. Reverend Haan sent a lengthy undated letter to the Board of Publications explaining the “workings” of his church. Les Kaemingk, attorney for COH, sent a letter to the Board, dated August 21, 1980, which explained the Center of Hope’s corporate structure. On August 26, 1980 COH’s CPA, George W. Whitley, sent Mr. Heynan a letter stating that his firm had prepared “unaudited” financial statements for the Center of Hope through April 30, 1979 and that his firm had been retained to prepare “unaudited” statements as of August 31, 1980. Further, COH requested a meeting with the Board of Publications. That meeting was set for September 15, 1980.

Following, these actions by COH, on August 26, 1980 Heynan again wrote Haan (COH) expressing his continued concern over The Banner’s obligation to its readers and, more specifically, that the advertisements tendered by the Center of Hope might be misleading. Heynan’s August 26, 1980 letter stated that pending the September 15, 1980 meeting, Center of Hope’s promissory note ads would be kept out of The Banner. Heynan also reassured Haan that his decision was not a final one.

On September 15, 1980, Haan and four other representatives met with six members of the Board of Publications and National Church in Grand Rapids, Michigan. Nothing seems to have been resolved at this meeting.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Oppedahl & Larson v. Network Solutions, Inc.
3 F. Supp. 2d 1147 (D. Colorado, 1998)
Anesthesia Advantage, Inc. v. Metz Group
759 F. Supp. 638 (D. Colorado, 1991)
Ho v. General Motors Corp.
661 F. Supp. 618 (E.D. Michigan, 1987)
Postal Instant Press v. Jackson
658 F. Supp. 739 (D. Colorado, 1987)
H.R.M., Inc. v. Tele-Communications, Inc.
653 F. Supp. 645 (D. Colorado, 1987)
Zimmerman v. BD. OF PUBLIC. OF CHRISTIAN REFORMED
598 F. Supp. 1002 (D. Colorado, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
598 F. Supp. 1002, 11 Media L. Rep. (BNA) 1545, 1984 U.S. Dist. LEXIS 21394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zimmerman-v-board-of-publications-of-the-christian-reformed-church-inc-cod-1984.