Lead Stories

PA OAG Reaches New Agreement With Trustees of Hershey School

Trustees had spent $3.6 million on internal investigations of possible insider trading, violation of conflict rules

The Pennsylvania Office of Attorney General has reached a new agreement with the trustees of the Hershey Trust Company and Hershey School only three years after an agreement made in 2013. 

Participants in Church Pension Plan May Sue for Breach of Fiduciary Duty

Minnesota Court of Appeals says decision can be made without involvement in religious doctrine

The Court of Appeals of Minnesota has reversed a trial court decision and permitted participants in pension plans of the Evangelical Lutheran Church in America to proceed with a suit against the plan board for breach of fiduciary duty. 

$14.5 Million Judgments Lost for Lack of Jurisdiction

“Stateless” citizens can’t use federal courts for jurisdiction based on diversity of citizenship

A citizen domiciled in Haiti cannot sue a defendant domiciled in Maine and claim federal court jurisdiction based on diversity of citizenship because of an “arcane” exception to the general rule allowing a citizen of one state to sue a citizen of another state in federal court.  But it was enough to cause a federal District Court in Maine to throw out two defamation verdicts totaling  $14.5 million when the defendant raised the issue after losing a “long, arduous” trial.  (

Unincorporated Association Can’t Hold Title to Real Estate

North Dakota Supreme Court refuses to make exception to recognize deed from former owner

The Supreme Court of North Dakota has refused to create an exception to the general rule that an unincorporated association may not hold title to real estate under state law.  It has denied a request by a nonprofit association to make an exception to recognize a deed the association claimed it received from the former owner.  (The Next Step v. Redmon, Supreme Ct., ND, No. 20150333, 5/26/16.)

What May Church, Pastor Litigate in Court?

Church claims breach of contract and trespass; Pastor claims conversion, breach of fiduciary duty, etc.

The First Amendment prohibits courts from taking jurisdiction of church disputes involving ecclesiastical issues, but permits them to exercise jurisdiction where the questions can be resolved under neutral principles of law.  The Supreme Court of Alabama has recently been asked to apply these concepts in a dispute involving a church in Clarke County.

Amendments Passed Without Approval Of Church Convention Are Void

Foundation can’t unilaterally amend documents to eliminate control of parent group

An appellate court in Missouri has affirmed a trial court decision holding that the Missouri Baptist Foundation can’t unilaterally amend its governing documents to eliminate the right of the Executive Board of the Missouri Baptist Convention to approve such changes.  The Court of Appeals has held that changes in the documents without the Convention’s prior review and approval are void.  (The Executive Board of the Missouri Baptist Convention v.