The Appeals Court of Indiana has struck down an earlier ruling that had awarded church property to Olivet Evangelical Presbyterian Church in Evansville, Ind., following its split with the Presbyterian Church (USA).

Declaring that Olivet’s participation in the denomination equates to compliance with the so-called trust clause – specifically its remaining in the PCUSA at reunion and agreeing to participate in Ohio Valley Presbytery’s dismissal process – the appeals court favored the presbytery based on its interpretation of the same neutral principles of law that often favors congregations.

In 2006, the Olivet congregation asked the presbytery to release it with property and finances to the Evangelical Presbyterian Church (EPC). The presbytery, which approved a dismissal but without property and offered a lease to Olivet. In mid-2007 the congregation declined the lease and further property negotiations, and the presbytery countered by taking Olivet to court.

Earlier this year, a local circuit court rejected claims by the presbytery and Synod of Lincoln Trails on Olivet’s property, awarding ownership to Olivet. That decision was based on applying the neutral principles of law to the deed and documents of ownership. The trial court also ruled that upon leaving the PCUSA Olivet was no longer bound by its rules, including the so-called trust clause.

But the appeals court applied the neutral principles of law differently than the trial court.

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