(The judge) also found Colonial had not established an implied trust with the PCUSA since the denomination did not furnish the original deed and that Colonial had always retained title to property. “The court finds that it would be [the PCUSA] who would be unjustly enriched by taking possession of [Colonial’s] property,” the judge stated.

One of Kansas City’s largest Presbyterian churches joined the growing ranks of departing churches that are winning property cases against the Presbyterian Church (USA).

On June 10, Judge Justine E. Del Muro ruled in favor of Colonial Presbyterian Church of Kansas City, Mo. in a decision that will allow the 1,700-member congregation to keep its property following its 2010 departure from Heartland Presbytery.

Filed in the Circuit Court of Jackson County, Mo., the summary judgment recognized Colonial as the legal owner of all church property, which is valued at just over $15 million and includes two campuses, despite Heartland’s claim that a trust existed between the church and the PCUSA.

Located near Kansas City, Colonial left the PCUSA following an overwhelming 927-27 vote in August 2010. Citing theological differences with the denomination, the congregation also approved a move to join the Evangelical Presbyterian Church (EPC).

Efforts to seek an agreeable departure agreement with Heartland led to a protracted battle that included restraining orders from both denominational and secular judicial bodies, formal complaints by other Heartland churches and a flurry of letters. One of Heartland’s letters told Colonial it had no right to leave the denomination. Ultimately, Colonial filed a lawsuit against the presbytery and Heartland filed counterclaims against Colonial.

‘No such trust’
Del Muro’s decision proved to be a resounding validation of neutral principles of church-property law – a validation which may prove helpful to other churches facing similar disputes across the U.S. as many state courts affirm state law rather than denominational edicts to decide property cases.

“Missouri courts, when resolving issues of church property disputes, must apply the neutral principles approach by relying on objective concepts of trust and property and scrutinizing any documents in purely secular terms,” Del Muro stated in her decision.

Heartland claimed that Colonial’s property was held in an express trust for the denomination, citing the PCUSA Book of Order. The presbytery anchored its case on a clause which states, “all property held by or for a particular church … is held in trust … for the use and benefit of the PCUSA.”

The judge rejected Heartland’s argument, stating the property had been titled to Colonial and that the church was not financially indebted to Heartland in connection with the property.

The language “for the use and benefit” confers only a right to use the property, not ownership, Del Muro said. She added, the Book of Order was created by the PCUSA, not Colonial and that the church had never signed its property over to the denomination.

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