October 17, 2006
By J. Richard Peck

ANCHORAGE, Alaska – The Alaska Supreme Court has ruled that a wood building that once housed a 60-member United Methodist congregation is owned by the Alaska Missionary Conference and former members who claimed the property are guilty of trespassing.

Almost eight months after the case was argued before the five justices on Jan. 25, the Supreme Court affirmed the decision of Alaska Superior Court Judge Richard Savell to award disputed property of St. Paul Church to the Alaska Missionary Conference.

The five-member state Supreme Court affirmed Oct. 13 the historic "trust provisions" of the United Methodist Church. The court rejected claims made by a dissident group to a church building valued two years ago at $322,000 and a parsonage valued at $196,000.

The trust clause is a measure introduced in the 1700s by Methodism founder John Wesley to protect the security of the "preaching house" as a place for worship. The clause, declaring that the title to all local church property is held by the annual (regional) conference, has been upheld by a variety of U.S. courts during the 200-plus history of the denomination in the United States. The California Court of Appeals is the only court to rule that a local church could revoke the trust clause.

James Allen, general counsel of the United Methodist General Council on Finance and Administration, celebrated the Alaska decision. "The decision by this state Supreme Court is completely opposite the unfortunate decision in the St. Luke's case from Fresno, Calif., on enforcement of the trust clause, leaving the California case as an aberration applicable only in California," said Allen.

The finance agency and the United Methodist Board of Global Ministries helped pay for legal work on the Alaska case. GCFA Legal Services worked with Bishop Edward W. Paup's team in Alaska, and acted as outside advisers to the attorneys that represented the Alaska Missionary Conference.

Paup, who presides over the missionary conference, said the decision "clearly supports the principle of connectionism in the United Methodist Church that a local church exists on behalf of the entire denomination. We do continue to pray for all those involved in this case."

"What we rejoice in the most is we were able to be a servant for the entire church in defending the trust clause of the denomination," said Lonnie Brooks, president of the Alaska Missionary Conference Board of Trustees.

While Paup welcomed the decision, which brings closure to the 4-year-old case, he said he was saddened by the fact that the good news could not be shared with Tom Dahl, the conference chancellor who died a few days after a March 28 accident in Moss Point, Miss.

Dahl was helping rebuild homes damaged by Hurricane Katrina when he fell from a ladder and never regained consciousness. "Tom gave tireless skill and commitment to this court case and was instrumental in arguing the questions in a way that led the conference to be victorious," Paup said.

Church closed in 2002

The St. Paul church was officially closed by a 61-1 decision of the Alaska Missionary Conference in 2002. "The decision to close the 18-year-old church was a difficult one," said the Rev. Rachel Lieder Simeon, the district superintendent responsible for St. Paul.

"The church was discontinued because after an 18-month assessment of the internal workings of the church, it became clear that the core leadership was unwilling to be subject to the authority of the denomination," Simeon said. "They would not take directions from the pastor, the superintendent or the bishop."

After the decision, members of the former congregation denied the conference access to the church building. The conference then went to court to assert its ownership of the property.

Court rulings

Although the property deed didn't refer to the trust clause, the court found that a letter by Bishop Calvin McConnell explaining the trust clause left no room for the defendants to argue lack of intent to create a trust. Moreover, the clause was not revoked when St. Paul amended its articles of incorporation.

When comparing this case with the Fresno case, the court said the applicable Alaska law with respect to revocability of trusts was the reverse of the California law. Moreover, the court pointed out that the California Court of Appeals found that a trust had been created, which reinforced the findings of the state Supreme Court.

The court also found that the St. Paul congregation's act of advising the missionary conference that there was no trust language in the deed merely reinforced the fact that the congregation did with intent and foreknowledge affiliate with the United Methodist Church.

The state Supreme Court stated that the Superior Court was correct in holding the defendants personally liable. The defendants have 10 days from the ruling in which to request a rehearing by the court.

Cam Carlson, a defendant in the case, said group members have not yet met with their attorney to decide whether to request a rehearing. The group will probably draft a response at that time, she said.

Carlson told United Methodist News Service on Oct. 17 that individuals involved in the case have paid "hundreds of thousands of dollars" in legal fees. She said it was against their policy to reveal how many people were paying these costs.

Brooks said no responsible attorney would advise them to request such a rehearing in the face of this kind of decision.

Building to be sold

The missionary conference was awarded $1,000 costs by the court and it has until Oct. 23, to present a case for additional reimbursement from the appellants for costs in the appeal process. Brooks said Fairbanks attorney Joe Sheehan will present the claim to the court.

Plans to sell the St. Paul Church building are under way.

"The conference has a contract with St. James Temple African Methodist Episcopal Zion Church to sell them the church building, which they currently occupy and maintain, at our unrecovered cost of litigation," Brooks said. "We still don't know what that cost is because we have to go back to the Superior Court, from which Judge Savell has since retired, to assert our claim for cost and fees. We already have agreed with the defendants, and the Superior Court has entered a judgment affirming the settlement, on damages of $20,000."

That settlement was contingent on a property decision of the Supreme Court in favor of the missionary conference.

United Methodist News Service
J. Richard Peck is a retired clergy member of the New York Annual Conference and communications coordinator of the Commission on United Methodist Men