Protecting Church Assets From Lawsuits

By Raul Rivera

Man Sues Church Because He Was Overcome By the Spirit

Lawsuits against churches are reaching all time highs as more and more litigating attorneys see them as easy targets.  Many pastors know that churches share many common goals, and these goals are often the targets of litigators who wish to profit from them.  This is not to say that churches have never made mistakes or have never been negligent in any lawsuit.  What I mean to say is that most lawsuits brought against churches are completely meritless and are driven by financial gain.  Many of the people that sue only do so after their attorneys convince them they can win the case.  Let's look at a few examples of some recent lawsuits brought against churches. We will then look at how litigating attorneys are targeting churches that share the common church goals.

1. Man sues church because he was overcome by the spirit:  A man in Tennessee filed a lawsuit against his church, his pastor, and the pastor's wife for 2.5 million dollars. The man claims he was injured because he was overcome by the Holy Spirit. After responding to the alter call of a visiting minister, the man was overcome by the spirit and fell back and hit his head.  According to reports by the local news media, the man said he was expecting someone to catch him during the experience, and no one did.  He filed a lawsuit demanding the church pay 2.5 million for medical bills, lost income, and pain and suffering. 
   
   In a similar case, a woman in Michigan sued her church because after responding to the alter call, she was "overcome by the Spirit of the Lord."  She fell back and hit her head on the floor. She sued the church claiming negligence. She also claimed that the pastor committed libel and slander against her.  She was awarded $315,000.00, but later an appeals court reduced it to $40,000.00, awarding negligence only.  She claims that as a result of the fall, she suffers emotional and physical problems.
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2. Church gets sued because of how it handled a youth's fall at a church service:  A young lady and her parents sued their church, the senior pastor, the youth minister,and other members over how they handled the collapse the young girl during a spiritual experience. The lawsuit included allegations of negligence, gross negligence, professional negligence,intentional infliction of emotional distress, false imprisonment, assault, battery, loss of consortium, and child abuse.
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3. An Oregon woman sues the church and a church member who became slain in the spirit and fell on her:  She participated as a "catcher" in a service and was injured when someone fell, and she was not able to successfully catch them.  In the case filed with the Circuit Court of Oregon, the woman claims that the church was negligent because it failed to teach her safe catching strategies, did not provide multiple catchers, and also for failing to make the landing surfaces softer.  She also sued the person who was slain in the spirit because they failed to control their body during the spiritual experience.  

Why is the Christian church being sued so often?

There are several reasons why many litigating attorneys eagerly encourage and represent individuals in suing churches.  As I mentioned earlier, there are some common goals that most churches share which probably makes lawsuits popular.    Additionally, the fear of God in America has dwindled to an all-time low, and people view the idea of suing a church no different than any other type of lawsuit.  Below are some of the main reasons why church lawsuits are looked at favorably by litigating attorneys.

1. Churches prioritize operating debt free: A debt free church is a strong and healthy church.  Many churches do their best to avoid debt, but most incur it when they purchase land and buildings.  A soon as a church incurs a mortgage, one of the first things they do is make every effort to pay off the debt on the building.  Because of this goal, many churches have a lot of equity which often becomes an easy target. Unfortunately, many churches that get sued often times get sued for more than what the insurance covers.  This can force the church to mortgage their paid off buildings and assets, leaving an insurmountable debt.
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2. Many churches have insurance policies:  Church safety policies and procedures are paramount.  Historically, most churches have operated with liability insurance policies, but have not done a good job paying attention to safety hazards within buildings or on property.  Because many churches rent worship facilities, they are required by their landlords to have a one million-dollar insurance policy which can often become the target of a lawsuit.
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3. An increasing number of people believe lawsuits are their only way to get rich:  A recent poll reveals that at least 15% of Americans believe that the only way to get rich is through an inheritance, a lottery, or a lawsuit. In addition, 41% believe it is harder than ever to prosper in today's society. This new attitude has led many to look at the once unthinkable lawsuit option as viable and normal.  

So what does a church do these days to protect their assets and reduce their exposure to a lawsuit?

We find examples in the scriptures that give us some guidance.  Jesus told his disciples that he was sending them as "sheep among wolves", and that they were to be "shrewd as snakes and as innocent as doves."  He gave this command after granting them authority to go in His name and take the message of the Gospel to the world.  He uses the phrase sheep among wolves because it's important to understand that your innocence of heart will not be enough to protect you. That is why He said be "shrewd as serpents."  The shrewdness of the serpent is probably its most effective trait in avoiding danger. Below are some strategies to help the church better protect itself.

Strategies to protect your church

1. Create policies and procedures that enhance safety:  Many churches usually never consider creating policies and procedures to help better conduct worship services. Due to the increase in lawsuits over the way the church conducts alter calls and laying on of hands, consider whether or not your church has policies and procedures in place to handle unexpected events during spirited worship. Remember, not everyone who comes to your church service has good intentions.  At our remaining conferences for 2010, we will give away written polices and procedures for alter calls and the laying on of hands. Your church can adopt and use these to train members.
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2. Transfer the ownership of your assets to a church owned holdings corporation:  I believe that one of the best strategies a church can employ is to create a holdings corporation to hold title to their property and assets.  A holding corporation is a corporation owned by the church, and its only purpose is to own the church's assets.  It never does business with the outside world, and neither does it make any income or receive donations. A holdings corporation simply owns and holds the church's assets to protect them from lawsuits and other outside intrusions.  Being shrewd, yet gentle, certainly applies because the church has the opportunity to wisely protect its assets in the unfortunate event of a lawsuit.  We discuss this topic at all of our conferences because it has become such a necessity in today's society.
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3. Make safety a priority at the church:  Have you ever spent time carefully examining your building for potential hazards?  Do you have no slip floor mats at the entrance and solid railing on stairs?  Have you ever thought about the importance of check-in procedures for children's church?  You will be amazed at how many items you will identify if you simply spend some time thinking about it. We will give away a free church safety checklist so that you can go over each one to ensure your church is not negligent in any way.  

The gospel will continue to grow unhindered

While we as leaders in the church have to deal with so many challenges that can potentially eliminate our ministries, the Lord will always continue to give us the tools necessary to rise above them.  The church will not only meet those challenges, but in the midst of them, it will continue to grow and prosper.