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Category: Church Property Disputes/Denominational Splits

Church Property Disputes/Denominational Splits

Make sure your local church is legally protected after disaffiliation from the United Methodist Church

any churches that have disaffiliated from the United Methodist Church have done so without legal counsel. The choice to leave without the assistance of an attorney may have been due to timing, cost or simply a decision by leaders that they could complete the process on their own. While the local church may have saved money on legal fees through the process, they may not have set themselves up for success in the future. Considering this, now may be the right time to review your corporate documents with legal counsel to see if your local church is fully protected.

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Church Property Disputes/Denominational Splits

Donors to local religious entities have a legal path to successfully sue religious denominations for return of donations based on fraud.

In a potentially groundbreaking case, the Ninth Circuit Court of Appeals has ruled that a church member may proceed with a lawsuit to recover donations when a denomination fraudulently told its members that it was using tithes and offerings for charitable means, when in fact the funds were used for a commercial enterprise.

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Church Property Disputes/Denominational Splits

Young-Nak Church of Los Angeles retains its property in a Religious Property Dispute against the Korean Presbyterian Church, Abroad

The Session of Young-Nak Church of Los Angeles, California, a 9000-member congregation – prevailed in a religious property lawsuit filed against it by the Korean Presbyterian Church, Abroad (KPCA), a denomination it was formally affiliated with, resulting in the local church retaining its $110 million dollar property.  

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Church Property Disputes/Denominational Splits

Local Church retains its property in denominational dispute in California

On May 5, 2023, The Honorable Terry Green, Los Angeles Circuit Court Judge entered a judgment dismissing a religious property lawsuit filed by the Korean Presbyterian Church Abroad denomination (“the KPCA”), against the individual session / board of director members of Young-Nak Church Presbyterian Church of Los Angeles, California and Young-Nak Church. This religious property dispute over a 9,000-member congregation having vast real estate holdings near downtown Los Angeles was largely premised on Young-Nak Church’s disaffiliation from the KPCA and its subsequent efforts to maintain rights to control its own property.

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