Grace Presbytery's notice of removal

7/29/2019 Grace Presbytery's notice of removal

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

HIGHLAND PARK PRESBYTERIAN

CHURCH INC.,

Plaintiff,

CIVIL ACTION NO. 3:13-cv-3813v.

GRACE PRESBYTERY, INC.,

Defendant.

NOTICE OF REMOVAL

Defendant Grace Presbytery, Inc. (Grace Presbytery) hereby files th

Removal to the United States District Court for the Northern District of Texas, Da

Plaintiff alleges that it is entitled to relief as a result of Grace Presbyterys alleged

free speech rights guaranteed by the First and Fourteenth Amendments to the U

Constitution, the religion clauses of the First Amendment to the United States Cons

the due process guarantees of the Fourteenth Amendment to the United States C

(Pet. at 64.). Plaintiffs claims pose federal questions and removal of this action i

28 U.S.C. 1331, 1441(a).

INTRODUCTION

Plaintiff Highland Park Presbyterian Church Inc. (Plaintiff) filed its Ori

and Application for Injunctive Relief (Petition) on September 10 2013 in the

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Plaintiff is a local congregation within the Presbyterian Church (USA) deno

PCUSA or denomination). (Pet. at 8.) Grace Presbytery is a district admi

(presbytery) of the PCUSA. (Pet. at 7.) In this action, Plaintiff seeks de

injunctive relief on issues of internal church governance concerning Grace Presbyt

church property. (Pet. at 55; 62-63.) Plaintiff asserts that it is entitled to such re

United States Constitution. (See, e.g., Pet. at 45, 64.) Plaintiff thus seek[s] rec

under the Constitution of the United States, and the federal questions appear on th

request. Bell v. Hood, 327 U.S. 678, 681 (1946). Accordingly, the federal courts m

the suit. Id.

THE REQUIREMENTS FOR REMOVAL ARE SATISFIED

A. Plaintiffs Petition states a federal question.

When a civil action is originally filed in state court, removal to federal cou

the action could have initially been brought in federal court. 28 U.S.C. 1441(a)

courts shall have original jurisdiction of all civil actions arising under the Constitut

United States. 28 U.S.C. 1331. Plaintiffs claims in this action arise under the C

the United States. Removal is therefore proper.

Before deciding that there is no jurisdiction, the District Court must look t

complaint is drawn to see if it is drawn so as to claim a right to recover under the

and laws of the United States. Bell, 327 U.S. at 681. In its verified Petition, Pl

that it is entitled to relief to halt Grace Presbyterys alleged violations of free



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Presbytery to exercise its rights would constitute unlawful church establishme

prohibited by the First Amendment to the United States Constitution. (Pet. at 45

These paragraphs allege a right to relief arising under the United States Con

Ortiz-Bonilla v. Federacion de Ajedrez de Puerto Rico, Inc., 2013 WL 4457427

Aug. 21, 2013) (finding federal question jurisdiction where chess players sough

chess federation from actions that allegedly violated the players rights under the

Constitution). [W]here the complaint, as here, is so drawn as to seek recovery d

the Constitution or laws of the United States, the federal court . . . must entertain th

327 U.S. at 681; see also Ortiz-Bonilla, 2013 WL 4457427 at *6.

This action is thus removable without regard to the citizenship or res

parties. See 28 U.S.C. 1441(b).1

B. This Notice of Removal is procedurally correct.

Grace Presbytery has satisfied all applicable procedural requirements re

Notice of Removal. This case was filed in state court on September 10, 2013. P

Grace Presbytery a copy of the Petition the same day. Thus, this Notice of Rem

within thirty days of Grace Presbyterys receipt of the Petition and therefore is time

28 U.S.C. 1446(b).

In addition, all other removal requirements have been satisfied. Grace P

complied with Local Rule 81.1 regarding the required form of documents to be filed

Attached hereto as Exhibit A is an index of documents filed in theh l l id ifi h d d i di h d



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Attached hereto as Exhibit B is a copy of the docket sheet for thecourt action; and

Attached hereto as Exhibits C - O are true and correct copies ofdocument filed in the state court action arranged in chronological ord

Immediately after filing this Notice of Removal, Grace Presbytery will fil

Filing Notice of Removal to Federal Court with the 298th Judicial District Co

County, Texas, a true and correct copy of which is attached hereto as Exhibit P. A

compliance with the Local Rules, Grace Presbytery has attached to this Notice o

Exhibits Q, R, and S, respectively: (1) a Northern District Civil Action Cover

Supplemental Civil Cover Sheet for Cases Removed from State Court, and (3)

signed certificate of interested persons that complies with Local Rule 3.1(f). Gra

has also paid the filing fee for the removed action.

C. The venue requirement is met.

Venue is proper in this Court because this is the United States District

district and division corresponding to the place where the state court action was pen

CONCLUSION

By this notice, Grace Presbytery does not waive any defenses or objection

have and Grace Presbytery intends no admission of fact, law, or liability by thi

reserves all defenses, motions, and pleas. Grace Presbytery prays that this action b

this Court for determination, that all further proceedings in the state court suit be sta

Grace Presbytery obtain all additional relief to which they are entitled.



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Respectfully submitted,

/s/ William D. Sims, Jr. _____

William D. Sims, Jr.

Texas Bar No. [email protected]

Thomas S. Leatherbury

Texas Bar No. [email protected]

Daniel L. TobeyTexas Bar No. 24048842

[email protected] P. Ritchie

Texas Bar No. 24079213

[email protected] & ELKINS LLP

2001 Ross Avenue, Suite 3700

Dallas, Texas 75201Tel: 214-220-7700

Fax: 214-220-7776

Attorneys for Defendant Grace Presby

CERTIFICATE OF SERVICE

I hereby certify that on September 19, 2013, I served a true and accuratforegoing document on the following counsel via certified mail:

Kent C. Krause

CRADDOCK DAVIS & KRAUSE LLP3100 Monticello Avenue, Suite 550

Dallas, Texas 75250

and

Lloyd J. LuncefordTAYLOR, PORTER, BROOKS, & PHILLIPS, L.L.P.

451 Fl id S 8th

Fl



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EXHIBIT A

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INDEX OF STATE COURT DOCUMENTS

EXHIBIT DATE FILED DOCUMENT

C September 10, 2013 Plaintiffs Original Petition and ApplicatioInjunctive Relief

D September 10, 2013 Citation Issued to Grace Presbytery, Inc.

E September 10, 2013 Temporary Restraining Order Issued to GrPresbytery, Inc.

F September 10, 2013 Civil Case Information Sheet

G September 10, 2013 Temporary Restraining Order to Grace Pre

H September 10, 2013 Deposit Information Sheet for Highland P

Presbyterian Church Cash Bond

I September 10, 2013 Affidavit of Michael W. Crain

J September 13, 2013 Plaintiffs Motion for Admission of Non-R

Attorney Pro Hac Vice

K September 13, 2013 Kent C. Krauses Motion in Support of LloLuncefords Motion Pro Hac Vice

L September 13, 2013 Non-Signed Proposed Order Admitting Ll

Lunceford Pro Hac Vice

M September 13, 2013 Return of Notice of Temporary Injunction

Grace Presbytery, Inc.

N September 13, 2013 Return of Temporary Restraining Order toPresbytery, Inc.

O September 13, 2013 Return of Citation to Grace Presbytery, In

US 2094240v.1



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EXHIBIT C



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- .7cAUSENo. oc- l ORIlb ku6

HIGHLAND PARK PRESBYTERIANCHURCH INC.Plaintiff,

IN TH

DALL$8tn

$$$$$$$$

vGRACE PRESBYTERY, INCDefendant.

PLAINTIFF'S ORIGINAL PETITION ANDAPPLICATION FOR INJUNCTIVE RELIEFTO THE HONORABLE JUDGE OF SAID COURT:Plaintiff Highland Park Presbyterian Church Inc., a Texas nonprofitcomplains of Defendant Grace Presbytery, Inc. and for cause of action respectfully a

I.DISCOVERY CONTROL PLAI\ LEVEL 3l. Discovery will be conducted under Level 3 of Rule 190 of the TexCivil Procedure.

II.REOUEST DISCLOSURE2. Defendant Grace Presbytery, Inc. ("Presbytery" or "Defendant") is

disclose, within fifty (50) days of service of this Request, the information adescribed in Tex. R. Civ. P. 19a.2(a)-(l). Copies of any documents produced in



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-III.PARTIES

3, Plaintiff Highland Park Presbyterian Church Inc. ("HPPC or Plaintiffnot for profit corporation located in Dallas.

4. Defendant Grace Presbytery, Inc,, at all times material to this action,Texas nonprofit corporation doing business in Dallas County, Texas. Defendant maappear by serving its registered agent for service of process: Connie t i"*; ;l

-

Texas 75039-3 148.lvd., Suite 100, Dallas, \C^J.l\r.,sh ft"bryry.JURISDICTION AND VENUE

5. This Court has jurisdiction based on the Texas Constitution and lawsof Texas, and these claims are within this Court's jurisdictional limits, Plaintiff bringfor injunctive and declaratory relief under the common and statutory laws of the Sand the United States of America. (See, e.g. Serbian Eastern Orthodox Diocese v. M426 U.S. 696 (19'76): Jones v. Wolt 443 U.S, 995 (1979), and; Brown v. Clark, 1334,ll65 W. 360 (1909). Plaintiff seeks monetary relief of $100,000 or less and nrelief.

6. Venue is proper in Dallas County pursuant to Tex. Civ. Prac. &$15.001, et seq,

V.FACTS


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-located at 6100 Colwell Blvd., Suite 100, Irving, TX 75039-3143. The PCUSA, hin Lexington, KY, was formed in 1983 by the merger of the Presbyterian Church iStates (the PCUS, or southern branch) and the Presbyterian Church in the UnitAmerica (the UPCUSA, or northern branch). Upon fbrmation of the PCUSA, the P

/UPCUSA both ceased to exist as separate denominations, and Grace Presbytery becaadministrative unit of the PCUSA, The PCUSA currently has approximately 10,churches located throughout the United States, including the State of Texas and DaAlthough the national constitution of the PCUSA, The Book of Order, was amendetrust in favor of the PCUSA over all property held by or for particular churches thatwith the PCUSA, authority under the Book of Order to waive the alleged trusenforcement against a particular church is granted to the presbytery in whose geograa particular church is situated.

8. Highland Park Presbyterian Church (or "HPPC") is a particular cPCUSA and is a Texas nonprofit corporation domiciled in Dallas County. Prior towith the PCUSA in 1983, HPPC was a member church of the PCUS. HPPC was fiin 1926 and first incorporated on January 31, 1928, as "Highland Presbyterian Chuvariously amended or restated its articles of incorporation, or reincorporated, in 1972006. The members of the local church corporation are all those who are on the athe local congregation, HPPC, located within the geographic bounds of Grace Pr


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-A. THE ARTICLES OF INCORPORATION FOR HIGHLAND PARKPRESBYTERIAN CHURCH

g. As more fully set forth below, at all relevant times the articles of incoHighland Park Presbyterian Church have provided that the members of the corpocorporate board of trustees, when managing the civil affairs of the corporation, shapowers of the corporation. Said articles further grant, without limitation, exclusiveauthority on all property matters to the local board of trustees or local congregationauthority being made subject to any other ecclesiastical entity or to the provisdenominational constitution that are in conflict with the local church's articles of inc

with the laws of the State of Texas.10, At no time in its history have the articles of incorporation for HPresbyterian Church contained any provision creating or establishing any trusimplied, in favor of a national denomination upon the property held by or for the loits civil corporation. Said articles were never amended to add such trust provisoscongregation, the session (the goveming body of the local church for ecclesiasticathe board of trustees of Highland Park Presberian Church, Inc. (the goveming bodcorporation for temporal matters like property) have ever adopted a congregationacorporate resolution creating or assenting to a trust pertaining to property held bparticular church.

I l. As noted above, "Highland Park Presbyterian Church" was first inc


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tt-Church building is to be erected, of the estimated value of $60,000.00," Article IV pthe term for which this 1928 corporation is to exist is "50 years". No mention isArticles of Grace presbytery, the Presbyterian Church (USA), or their predecesmention made of any trust over local church property in favor of the PCUSA or itsand enforceable by Grace Presbytery,

12, Fifty years later "Highland Park Presbyterian Church" amended andarticles of incorporation, on January l,lg78. Article III provided in relevant part thaand purpose of the corporation would be to, "encourage, support, maintain and preworship in the presbyterian Church". Article III(a) and (b) gave exclusive and plenon all property matters, both real and personal, to the corporation, subject onnonproft corporation law. The articles of incorporation do not make the execorporation's powers with respect to property subject to any ecclesiastical provisioecclesiastical entities beyond the local "Highland Park Presbyterian Church". The oof any other ecclesiastical entity is found in Article VI, which states that "the businesof the corporation shall be managed by a board of trustees comprised of five persootherwise provided by the Book of Church Order of the Presberian Church iStates". This Article, however, does not say, "as that Book of Church Order mayfrom time to time", for example, nor otherwise subordinate the managemenoperation of the civil corporation to a separate religious charter, Article VIII provid

th




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--mention made of any trust over local church property in favor of the PCUSA or its pand enforceable by Grace Presbfery'

13. On Septemb er 27,1981, Highland Park Presbenan Church amendeof incorporation to newly provide that it pledged the assets of the corporationperforming the general religious functions set forth in Aticle III of its 1978 Artnewly provide that, in the event of dissolution, recipient organizations of any diassets must qualify for an exemption from Texas property taxation under the Texascode. As before, all such potential distributions continued to be at the exclusive disctrustees of the corporation and would be in accordance with a plan of distribupursuant to Texas nonprofrt corporation law. No mention is made in the Articpresbytery, the Presbyterian Church (USA), or their predecessors, nor is mentiontrust over local church property in favor of the PCUSA or its predecessors and enGrace Presbytery.

14. On November 14, 2006, Highland Park Presbyterian Church arestated its articles of incorporation, New Article III defines the objects and pucorporation to, "encourage, support, maintain and preserve public worship. Thproperties of the corporation are hereby pledged for use in performing its exempt fumention is made in the Articles of a particular denomination. Exclusive and plenfor all corporate matters authorized under Texas non-proftt corporation law, inclu

tru




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tlz

corporation, distribution of all corporate assets shall be made exclusively by thtrustees, at its sole discretion, to organizations in the state of Texas organized aexclusively for religious, charitable and/or educational purposes that are describe501(cX3) of the Federal Tax Code and that are qualified for exemption from Tetaxation under the Texas property tax code. No mention is made in the ArticlPresbytery, the Presbyterian Church (USA), or their predecessors' nol is mentiontrust over local church property in favor of the PCUSA or its predecessors and enGrace PresbyterY.

15. On August 31, 2006, the board of trustees of the church corporaamended and restated bylaws (2006 bylaws). Article [, Section 2 of the 2006 bylathe corporation will be "operated exclusively for religious, charitable and educatiowithin the meaning of Section 501(c)(3) of the Internal Revenue Code of 198, as aNo mention is made anywhere in the 2006 bylaws of Grace Presbytery, the Presbyt(USA), or their predecessors, nor is mention made of any trust over local churcfavor of the pCUSA or its predecessors and enforceable by Grace Presbytery'

16. Article I, Section 4 of the 2006 bylaws provides that all membersroll of the congregation of Highland Park Presbyterian Church shall be memcorporation (which corporation Shall here and now be cglldlhl'Church")'

17. Article II of the 2006 bylaws states in Section I that the duties and react shall be




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-shall have plenary and exclusive authority to act on behalf of the corporation:

For buying, selling, and mortgaging of the property for the Chuacquiring and conveying title to such property, the holding and defentitle to the same, and the managing of any permnent special funds entruto them for the furtherance of the purposes of the Church. In buying' sereal property on behalf of the Corporation, the boasolelv the authoritv of Church. granted in aand mortgagingtrustees shall actconstituted meeting of the congregation.B. THE PROPERTY OWNED BY HIGHLAND PARK PRESBYTERIAN18. The deeds for all real property owned and held by Highland ParkChurch list the owner in title as "Highland Park Presbyterian Church, a Texas corpmention is made of any particular denomination, district presbytery, or other ecclesiaNone of the deeds contain any trust language, use restrictions or reservations of righone transfer restricting certain property for use as a church of unspecified natuproperty owned and held by Highland Park Presbyterian Church falls into tcategories:

a) "East Campus" The main physical plant of Highland Park Presbyterian Cthe sanctuary and associated buildings are located, commonly known as the "Eastsituated on two tracts, to wit:

Tract One:BEING Tract No. l, of University Lake Park and Highland Park PresbyChurch Tracts, an Addition to The City of University Park, Texas, accordthe Plat thereof Recorded in Volume 4,Page 169, Map Records of Dallas CoTexas; and containing 3.34416 acres of land, and being in the John Sc


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--Dallas, Texas, according to the Plat thereof Recorded in Volume 2, Pagetrtup R""ords of Dallas ounty, Texas; and containing 18,740 square feet of*oi" o, less, and being in th John Scurlock Survey, Abstract No' 1351, DCounty, Texas; and betg the same property described in Quit Claim DeedOctobl l, 1974, Volumi 74lgl,Page 2149, Deed Records of Dallas CoTexas; and having an address of 3821 University Boulevard, UniversityTexas,75205.b) "West Block" HppC also owns a contiguous block that consists of eleve

properties, commonly known as the "West Block". The municipal addresses ofBlock" properties are set forth in Appendix A, attached hereto and made a part he,,West Block,, properties are located within Block B of Windsor Place, an Addition tUniversity park, Dallas County, according to the Map thereof recorded in VolumeMap Records of Dallas CountY.

c) "Jenkins .properties" HPPC also owns certain "Jenkins Subdivisionconsisting of thee houses whose municipal addresses are 3829 McFarlin, 3833 M3g37 McFarlin, all being located on a contiguous block to the south of McFarlin, an7, g, and 9 in Jenkins Subdivision of Tract 3 of University Park and Highland Parkchurch Tracts according to the Map recorded in volume 4, Page 24, of the MaDallas County. These properties are also listed in Appendix A, attached hereto anhereof.

lg. The estimated value of the real property of Highland Park Presbyterthirty million dollars ($30,000,000.00), All of it, the land and all improvements

donated exclusively by loca

g



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-enable us to erect and possess a House of Worship and that in order to obtain suchamount it would be necessary for the Trustees of the Church to execute a bond in th$7,500.u Repayment of the bond was to be secured by a lien on the church propertaccording to the June 12, 1927 minutes, re-payment was required only if HPPC ceasexistence or "the mortgage and property be alienated or abandoned, or the House oalienated or abandoned as a House of Worship"'

Zl. Grace Presbytery, the PCUSA, and their predecessors have not psubstantial financial support to HPPC in over eighty-five (85) years. HPPC has, hoits formation in 1926, made substantial financial contributions to Grace Presbytery, and their predecessors. Over the past fifteen years alone, from 1998 forward, HPPCto Grace Presbytery and to the PCUSA, in voluntary per capita contributions, volungiving, and special offerings and other related giving and support, in excess of $3,00C. TIIE BASIS OF GRACE PRESBYTERY'S CLAIM TO THE PRO

HIGHLAIID PARK PRESBYTERIA}{ CHURCH22. The Constitution of the PCUSA consists of two parts, the Book of(Part I) and the Book of Order (Part II). The Book of Confessions contains doctrinand statements of church governance (polity), The Book of Order focuses on churcand divides itself into three main sections: the Form of Govemment, the Directorand the Rules of Discipline, The Book of Order underwent substantial revision, e2011, and many of its former provisions that were retained were newly num



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rt-g.020l), which asserts that, "All property held by or for a particular church ... isnevertheless for the use and benefit of the Presberian Church (USA)." This clausefor the assertion by Grace Presbytery of a right to assert control over the use and dall property held by or for HppC, Inc. It is the position of HPPC, Inc., however, thaand its predecessor added to the PCUS Book of Church Order in the last year oexistence, are not applicable to plaintiffs property and are not legally enforceabConstitution or laws of the State of Texas.

24. The PCUSA Book of Order contains a clause asserted by the denpertain to ownership. G-4.0207 (formerly G-8.0600) alleges that a PCUSA presbyGrace Presbytery) may dictate ownership of local church property located within thbounds of the presbytery-under certain circumstancos that the presbytery can macreate. The PCUS Book of Church Order was amended in 1982/83 to add a similarOn information and belief, the PCUS Book of Church Order did not previously conclause. It is plaintiff s position that G-4.0207 and any predecessor clause in the PCChurch Order are not applicable to plaintiff s property and are not legally enforceaConstitution or laws of the State of Texas.

25. G.4.0205 (formerly G-8.0301) of the PCUSA Book of Order pertainsfrom the pCUSA and provides that when a local church ceases to be a particular pCUSA its property shall be "held, used, applied, transferred, or sold as pro

a



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V-enforceable under the Constitution or laws of the State of Texas.

26. Although G-4.0206 (formerly G-8.0501) of the PCUSA Book of ordethe written permission of the presbytery is required before a particular church can seor otherwise encumber any of its real property, Chapter 6 of the 198211983 editionBook of Church Order did not contain such a requirement but, to the contrary, statedat 6-g, that ,.Nothing in this chapter shall be construed to require a particular churcobtain the consent or approval of any church court above the level of the particuorder to buy, sell or mortgage the property of that particular church in the conduct ofa church of the PCUS."

27. In addition, other property provisions in Chapter VIII of the PCUOrder that are not substantially similar to provisions in Chapter 6 of the 198211983pCUS Book of Church Order are also not applicable to Highland Park Presberianare not legally enforceable under the Constitution or laws of the State of Texas'

ZB. The Book of Order includes "Historic" (i.e., foundational) PrincipleOrder. These basic pCUSA goveming principles state at F-3.0101 that, as a mattefreedom, provisions of the denominational constitution are not to be enforced throuof civil courts. F-3.0101 states:(a) That ,,God alone is Lord of the conscience, and hath left it freethe doctrines and commandments of men which are in anything contrhis Word, or beside it, in matters of faith or worship"'

judgment' all m



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-a presbyterian form of govemment should not burden or infringe existing or vesrights. Specifrcally, the Westminster Confession of 1647, included in the Book ofstates at 6,l4g,,,Nor doth their communion one with another as saints, take away ortitle or property which each man hath in his goods and possessions'"

30. G-4.0208 (formerly G-8.0700) of the PCUSA Book of Order sexemption from certain property provisions of the PCUSA Book of Order. G-4'02that no particular church (local congregation) of the PCUSA shall be bound byproperty provisions in the Book of Order if it was not previously subject to a similarthe denominational constitution it was subject to immediately prior to the creation o

long as that congregation, within a period of eight years following the estapCUSA, votes to claim this exemption. tn the event of such timely vote, a part..shall hold title to its property and exercise its privileges of incorporation aownership under the provisions of the Constitution to which it was subject immedithe establishment of the Presberian Church USA"'

31. Highland Park Presbyterian Church timely exercised the exemption4.020g (then G-g.0700) of the PCUSA Book of Order at a regularly called comeeting on April 29,1984. At that meeting the congregation adopted a motion toexemption provision in (then) Chapter VIII of the PCUSA Book of Order,understanding and intent of the congregation at the time that by doing so it would

Book of C



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-or claims by the denomination of a right to determine ownership, and to reject theholding or conveying any of its property in trust, or creating or establishing a trustand benefit of a national denomination, whether the PCUSA or the PCUS'

32. As further indication of intent, according to the minutes of the Apcongregational meeting at which Highland Park Presbyterian Church claimed the exindividual who moved that the congregation claim the exemption, Mr, Burt(corporate trustee and chairman of the property acquisition committee), explainedvote that the motion pertained "to the manner in which the church owns and opeestate ... In our former denomination (PCUS) we operated under the PCUS BooOrder which gave the congregation complete control over its property. The new BpC(USA) provides that our former denomination (PCUS) could, by action of the copt to continue operating its property as in the past." The text of this explanationthe congregation immediately prior to its vote, indicates that its understanding andpreserve not only the congregation's ownership but also its exclusive right to controdisposition of all of its property.

33. Following the congregational adoption of the April 29, 1984congregation notified Grace Presbytery of its action, which notice, pursuant t(formerly G-g.0407 - g.040g) of the pcusA Book of order was accepted withoutGrace presbytery in affrrmation that said proceedings were "regular and in accord



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t-(formerly G-8.0700) and thereby fall back on Section 6-8 of the PCUS Book of Cwas to negate the assertion of a trust at G-4.0203 (formerly G-8.0201), evendenomination,s own governing documents. The express reservation of an unfettedetermine the use, control, or disposition of one's own property is mutually exclusiconsent to another party to determine the use, control, or disposition of that same pro

35. For approximately sixty years, from the time Highland Park Presbytewas founded in 1926, and continuously throughout its existence until 1982, no dwith which it was affiliated ever contained any express trust clause in the deconstitution. prior to the addition of express trust language in the 1982/1983 ePCUS Book of Church Order, no denomination with which it was aff,rliated ever coconstitution any implied trust over local church property which ran in favor ofdenomination.

36. In anticipation of the merger of the "southem chursh" and the "northin the year immediately prior to the 1983 formation of the PCUSA, the PCUS BooOrder was reportedly amended to add express trust clauses, in Section 6-1, Sectionwhich clauses frrst appeared in the 1982/1983 edition of the PCUS Book of CThese three trust clauses are ambiguous, inconsistent and are of uncertain meaning.and 6-2 of the lgg2llgg3 edition of the PCUS Book of Church Order assert thachurch holds title to property in trust for both the benefit of the particular



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--congregation of Highland park presbyterian church or its corresponding plcorporation, which is the ovner and titleholder of record of the real property at issthe process involved: a) participation by presbytery/commissioners (voting delegnational General Assembly, chosen to attend the G,A. by the district presbytepresberies in practice are the beneficiaries of the trust clauses that were addparticipation by presbyters (voting delegates) at meetings of the district presbyterieattend by local congregations. The PCUSA Book of Order expressly states atF'3.3.0101 (formerly G-4.0301d and G-1.0301) that presbyters are not requiredrepresentative capacity on behalf of local congregations'

38. Following initial approval by the commissioners to General Assemtrust clauses were added to the denominational constitutions upon ratification bnumber of presbyteries - inespective of whether or not Grace Presbytery, actinthen-presbyters, voted in favor of ratification, and irrespective of whether the loowners of record, such as HPPC, Inc., participated in the ratification proceauthorized, local consent'

39. The pCUS Book of Church Order did not require, nor does the PCUOrder require, that any property deeds include trust clauses in f'avor of a national dNor do these denominational charters otherwise require mention or inclusion odenomination (such as the pCUS or PCUSA) in the name or identity of the list



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{-

D.

trust over local church property nor any denominational claim to determine owner

control of property titled in the name of the local church corporation or of any imthereon. At all times the ecclesiastical congregation, the civil corporation, and thegoverning boards have affrrmed and reaffirmed their understanding and intent thatheld by the local church, whether incorporated or as an unincorporated religiouswhether corporeal or incorporeal, movable or immovable, (real or personal), is heldin rll and complete ownership in accordance with the deeds, articles of incorporatidocuments indicative of intent, and that none of said property is held in trust forbenefit of a national denomination or any if its district administrative units suPresbytery.

TIIE PCUSA/PCUS ACKNOWLEDGE THAT LOCAL CHURCH PMATTERS ARE DETERMINED BY STATE LAW ANDCONTROLLED BY ASPIRATIONAL ASSERTIONS IN DENOMINCONSTITUTIONS41. Section G-4.0101 (formerly G-7.0401) of the PCUSA Book of Ord,.Whenever permitted by civil law, each particular church shall cause a corporation

and maintained." The pCUS Book of Church Order also contains clauses auencouraging incorporation under state law (6-l ,6-2 of the 1982i1983 edition).Book of Order not only mandates incorporation where permitted by civil law, but aat G-4.0101, that the corporation so formed shall be the title holder of record of theproperty. In mandating local church incorporation when permitted by civil law, the



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--state in which the property is located and in which the local church has incorporated'

42. The pCUSA Book of Order does not, and the former PCUS BooOrder did not, require that:

a) a local church corporation include the name of the denomination (PCUPCUSA) in the local corPorate name;b) local deeds contain the name of the denomination as part of the gtanidentification;c) inclusion of trust language in the deeds;d) local articles of incorporation state that the affairs of the corporatiosubject to the denominational constitution irrespective of any conprouirionr in the civil articles of incorporation or state o federal law.43. The pCUSA's "Leeal Resource Manual for Presbyteriq.n Churc.h (U

Governing Bodies and Churches" expressly acknowledges that the provisions ofconstitution characteristically do not control property matters ("Almost all propertgovemed by state law ...").

44. G-9.0102 of the PCUSA Book of Order distinguished the spiritual,realm from temporal, civil authority, by providing, "coveming bodies of the churcfrom the govemment of the state and have no civil jurisdiction or power topenalties. They have only ecclesiastical jurisdiction." According to this provision,or other ecclesiastical governing body of the PCUSA cannot exercise civil powerclaim over local church property based on provisions in the denominational conscan they obtain civil court enforcement of denominational property provisions if tho



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--ecclesiastical jurisdiction for the purpose of serving Jesus christ and declaring and

will in relation to truth and service, order and disciprine. They may frame statemebear testimony against err in doctrine and immorality in life, resolve questions ofdiscipline, give counsel in matters of conscience, and decide issues properly broughtunder the provisions of this Book of Order ..."]

45. As a corollary to former G-9.0102 and present G-3.0102 of PCUorder, which states that the pcusA and its administrative units such as Grace Preonly ecclesiastical jurisdiction and do not have temporal authority over civilrecognition that property matters are to be governed by state law), former G-1'0present F-3.0101b) of the pcusA Book of order also states that the providenominational constitution are not, as a matter of the free exercise of religion, to bethe civil power of the state through its courts. Therefore, while this court has sjurisdiction to resolve the property dispute before it, it cannot do so by givinauthority to the pCUSA Book of Order property provisions, as such wouldunlawful church establishment that is not only prohibited by the First AmendmentStates Constitution and the Constitution of the State of Texas, but also by the Pconstitution. Rather, any valid trust or other property interest in favor of Grace PrepCUSA, if such exists at all, must be founded only upon mutual intent evidencedordinary civil means pursuant to state law'

OF A V

--Case 3:13-cv-03813-B Document 1-3 Filed 09/19/13 Page 21 of 35


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Y

1.02(AXl), et seq, and g 304; TEX. BUS. ORGS. CODE $ l.l0l (providing thagoverns internal affairs of entities formed by certifrcate of formation from Texas).47. Alleged trusts purporting to hold Texas land are govemed by Texas lSqc. for Crippled Children v. Hickok, 261 S.W.2d 692, 697 (Tex. 1953); IJrtHouston. N.A. v. Ouintana Petroleum Com., 699 S.V/ .2d 864,877 (Tex' App.-HDist.l 19g5, writ refd n.r.e.) ("[A]s a general rule it is held that the administratioimposed on land is govemed by the law of the state where the land is locatedsupervised by the courts of that state."); RESTATEMENT (SECOND) CONFLICT(l97l) $ 27S, Trusts administered by Texas trustees are governed by Texas lawFlorida Bank-& Trust co., 160 F.2d 766,77115th Cir. 1947) ("Matters of admindetermined by the law of the situs or the seat of the trust, and the domicile of tintangible personal property including shares of stock is usually the seat ofRESTATEMENT (SECOND) CONFLICT OF LAWS 2d (1971) $ 270(b), comment

48. Texas law requires that any trust concerning realty must be written athe settlor. Texas law also makes all trust revocable unless they expressly state oeven assuming a trust on behalf of the PCUSA enforceable by Grace Presbytery evwas revoked in April 1984 by express act of the owner/settlor HPPC'

49. property can be placed in a trust only by its owner. TEX' PROlll.002 ("A trust is created only if the settlor manifests an intention to create a tru



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--l l2.00l (',A trust may be created by: (1) a property owner's declaration that the ownproperty as trustee for another person; (2) a property owner's inter vivos transfer ofto another person as trustee for the transferor or a third person; (3) a propetestamentay transfer to another person as trustee for a third person..."); accoTRUST ACT $ 7 (formerly TEX. REV. C1V. STAT. art.7425b-7), Act of April 1Leg., R.S,, ch. 148, $ 7, 1943 TEX. GEN. LAWS 232,234'

50, ,'Declarations of the purported beneficiary of the trust are not cestablish the trust.,, Best Inv. Co. v. Hemandez, 479 S.W.2d 759,763 (Tex. Civ.lglz,writ refd n.r.e.); wise v. Haynes, 103 s.w.2d 477,483 (Tex. Civ. App'-Texano writ) ("[T]he declarations of the cestui que trust are not competent to establish the

51. The statute of frauds requires that a trust involving realty must be insigned by the settlor. See TEX. pRoP. CODE $ 112.004 ("4 trust in either reaproperty is enforceable only if there is written evidence of the trust's terms bearingof the settlor or the settlor's authorized agent ..."). This has been Texas law since 1TRUST ACT $ 7 (formerly TEX. REV. CIV. STAT. art.1425b-7), Act of April 1Leg., R.S., ch, 148, S 7,lg43 Tex. Gen. Laws232,234 ("Provided, however, trelation to or consisting ofreal property shall be invalid, unless created, established... tbl' a written instrument subscribed by the trustor or by his agent thereunto duby writing; ..."), As the PCUSA trust clause was not signed by the Presbytery or b

vCase 3:13-cv-03813-B Document 1-3 Filed 09/19/13 Page 23 of 35


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terms of the instrument creating it or of an instrument modifying it." TEX. PRO112.051(a). The rule is different in most other states, as it was in Texas beforeTEXAS TRUST ACT $ 7 (formerly Tex, Rev. civ. stat. art.7425b-41), Act of Ap4gth Leg., R.S., ch. 148, $ 7,1943 Tex. Gen. Laws232,234 ("Every trust shall be rthe trustor during his lifetime, unless expressly made inevocable by the terms of thcreating the same or by a supplement or amendment thereto'"); Moqday v' Yance' 4518 (Tex. 1899); Citi?ens Nat. Bank of Breckenridee v. Allen, 575 S.W.2d 654,657Eastland lglg,writ refd n.r.e.) In Texas, "[t]rusts created under Texas law ate revocmade specifrcally irrevocable." Ayers v. Mitchell, 16? s.w.3d 924,930 (Tex. App2005, no pet.).

53. Nothing in the PCUSA trust clause or anywhere in the PCUSA Bookits predecessors expressly created an irrevocable trust, so any alleged trust inPCUSA was revocable. That is what HPPC did in April, 1984 by claiming thprovision. The only provision in the Book of Order said to be inevocable-not samendment, is this exemption clause.

vI.CAUSES OF ACTIONA. DECLARATORY RELIEF54. paragraphs 1 through 53 above are re-alleged as if fully stated herein'

-

v et55. In

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Applying neutral principles of law to resolve church property disputes, "[O]n thedeeds, the terms of the local church charters, the state statutes governing the holdinproperty, and the provisions in the constitution of the general church concerning theand control of church property.", Jones v. Wolf,443 U.S. 595 at 603 (1979), all propor titled in the name of the plaintiff, and any improvements thereon, whether cincoqporeal, movable or immovable, or real or personal, is held without trust forbenefit of the PCUSA or other national denomination, or any of its regional adminissuch as Grace presbytery, Highland Park Presbyterian Church Inc. holds all propertynarne, and all improvements thereon, in full, complete, and unfettered ownership pulaws of the State of Texas and as set forth in plaintiffs deeds and articles of inNeither the pCUSA nor any of its regional administrative units such as Grace Presbyrigt, title or interest, in trust or otherwise, in said property, nor right to determine thuse or control thereof.B. INJVNCTIVE RELIEF

56. The pCUSA Book of Order ambiguously states that when there is a "rparticular church is ,,affected with disorder" a presbytery can, without prior noticappoint an ..administrative commission" to indefinitely assume "original jurisdexisting session" (i,e. Remove and replace the governing body of the particular chto .,correct the difficulties," which can include the power to "dissolve a pastoral

-Case 3:13-cv-03813-B Document 1-3 Filed 09/19/13 Page 25 of 35


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-ST.PcUsApresbyterieshavebegundepartingfromthecustomaryandexpec

of administrative commissions, and have started misusing them for temporal, civilpu

a device to try and impermissibly expropriate locar church property under the purporecclesiastical cover.

5g. pCUSA presberies, in response to dissent, whether perceived or actucongregations, ministers, church offrcers, and trustees to certain external denominatiohave variously: a) taken acts intended to assert ownership or place clouds omerchantable local property titles by recording, without prior notice, affidavdocuments in local mortgage and conveyance records which improperly assert truchurch property in favor of the denomination, regardless of the facts of a local churchistory or the laws of the state in which local church property is situated, b) wisought to change locks on local church property and otherwise seize local church aappointed .,administrative commissions" to assert "original jurisdiction" to suppcongregational govemance by removing, without notice and opportunity for hearinministers and sessions, thereby permitting the pcusA presbery to effectively conchurch property and deal with it as if its own'

Sg. Heightening the threat to local congregational property, the PCUSAoffrce of General Assembly (Department of constitutional services), issued "AdvisNote 19,,, which states in part III thereof that if a presbytery, such as Grace Presb

of a local church voicing



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60. Illustrating the aggressive tactics increasingly being used by PCUSA pto utilize ..administrative commissions" as the mechanism or device to trydenominational ownership and control over local church property, the PCUSA hprepared legal strategy memoranda, waived any privilege of confidentiality, dimemoranda to the press and public, and made them available on the internet, The P

strategy memoranda:

the local church;b) advise how to rreezelocal church assets and physically seize property;c) recommend placing a cloud on local church property titles by faffidavits in property -records, irrespective of state law or the facts oproPertY in disPute;d) recommend mailing letters concerning contested property to any bor other financial institutions that hold accounts for the local church, wletters..orderD that no assets be released to the local church;

f) recommend that presbyteries in their pleadings "use spiritu.al languin order to posture t'hemslves in a pt sitive light, and to negatively rethe local church in the caption and in pleadings as "schismatictt; andg)recommendtopresbyteries,throughtheuseofadministracommissions, to try ana kep the local church in a defensive secularposture, counseling "Let the schismatics seek caesar's help."61. Grace presbytery, following direction from denominational head

-

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-seek dismissal from the pCUSA, an administrative commission appointed by Grace

the week before "assumed original jurisdiction" over FPC Longview. The adcommission substituted itself in place of the session (board of elders) that had been dby the congregation, and asserted ersatz authority as the new governing body of the lin order to seize use and control of all property held by or for FPC Longview'

62. A temporary restraining order and temporary injunction while this suiis necessary to stay the hand of Grace Presbytery frorn appointing an administrativethat would, without just cause, usurp and replace the authority of the pastor, the sesboard of trustees in order to effect control of the property. Said restraining order aninjunction would protect the members of Highland Park Presbyterian Church who, unonprofit corporation law and HPPC's Articles of Incorporation, are also the memeffect the shareholders of the local church corporation. Said restraining order aninjunction would preserve the status quo until such time as the question of ownershithe property of Highland park presberian Church can be determined by this Coutemporary restraining order and temporary injunction the rights of plaintiff, the govof Higland park presbyterian Church (the session), and the members of the conHighland park presbyterian Church, and the property rights of Highland ParkChurch will be irreparably injured.

63. plaintiff seeks a permanent injunction in the form of the temporary in



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-of the local church corporation is held by it in fi,ll and exclusive ownership and that

PCUSA nor Grace Presbytery has any right, title or interest, in trust or otherwproperty, nor right to determine the ownership thereof'

64. The actions by pCUSA presbyteries described above violate state pand trust law, free speech rights guaranteed by the First and Fourteenth Amendmunited states constitution, the religion clauses of the First Amendment to the uConstitution, the due process guarantees of the Fourteenth Amendment to the Uconstitution, the counterparts set forth in the Texas constitution, and substantive proguaranteed under the Texas constitution. The effect of such actions, if taken in whoor theatened by Grace presbytery, would chill if not violate the foregoing, protinterfere with appropriate corporate church govemance, impede the ability of HiPresbyterian church to hold a onglegational or corporate meeting free of improperand cloud the title of property held by Highland Park Presbyterian church'

65. Under Texas law a showing of irreparable harm is presumed when thof a constitutional right is involved, or the protection of the ownership, posenjoyment of immoveable property, or when the moving party demonstrates thsought to be enjoined is in violation of prohibitory law'

66. Highland park presbyterian church is a not-for-profit corporationpurpose is not monetary but spiritual and philanthropic. A monetary award is thus a

injunction'



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coalition, Dallas pregnancy Resource center, presbyterian children's Homes

Salvation Army partners, food banks, soup kitchens, childhood literacy educationprison ministries, adult job training services, and assisted living for the elderly' Nosubsequent monetary award would be an adequate remedy to the ineparable damagebe done to the mission and ministries of Highland Park Presbyterian church that wo

a result of confiscatory action initiated by Grace Presbytery in retaliation for theplaintiffs rights.

67. A temporary restraining order and temporary injunction during thethis suit is necessary to stay the hand of Grace Presbytery from appointing an adcommission that would, without just cause, usurp and replace the authority of thsession, or the board of trustees to thereby effect control over HPPC property. Sarestraining order and temporary injunction would protect the members of HiPresbyterian Church who, under Texas nonprofit corporation law and HPPC'sIncorporation, afe also the members and, in effect, the shareholders of the corporation. said restraining order and temporary injunction would preserve the stasuch time as the question of ownership and use of the property of Highland parkchurch can be determined by this court, Absent said temporary restraining order ainjunction the rights of plaintiff, the governing body of Highland park presbyteriansession), and the members of the congregation of Highland Park Presbyterian

injured'

--Case 3:13-cv-03813-B Document 1-3 Filed 09/19/13 Page 30 of 35


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69. There is a substantial likelihood that Highland Park Presbyterian Cprevail on the merits of its suit for permanent injunction and declaratory judgment'

\ilHEREFORE, plaintiff, Highland Park Presbyterian church, prays thatrestraining order and temporary injunction be issued herein and that a permanent injundeclaratory judgment be issued herein after trial on the merits as follows:l) - restraining and enjoining defendant Grace PA)andanyofitsagents,employeesorother

in its stead, from:(a) filing anY documentsCountY where the subjectto Place a cloud on the titl(b) otherwise taking any action to claim or assert ownership, usproperty, whether corporeal or incopo

or r-eal or personal, or a right to deterof local church property, n the possessiocontrol of, owned by or titled in the name of Highland Park PresbChurch; and

riehtstothepropertyofHighlandParkPresbebutnotlimitedtoseekingtochangethelocksofHPPciplinaryactionagainsttheministersormembeHppC, appointing an administrative commission with authority to as..originairisdict-ion" over HPPC's local governance and control ofproperty possessed by or titled in HPPby dissolution or otherwise, in any wof the em tloyees

injury to Grace presbytery, the non-owner, which might result from the granting of a

restraining order and a temporary injunction, said relief and injunctionbeing in

interest.

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in paragraph l) ofthis PraYer; and4) j;;'#:'"T:iJ'li11,,",1ilJ};,rsonal, is held without trust for the use and benefit ofy of its regional administrative units su-holds all property titled in its nammplete ownership pursuant to the lawsff ar icles of incorporation, and thatpCUSA nor any of its regional administrative units such as Grace Presbyright, title or intlrest in said property nor right to determine the ownership, usthereof.

5) that defendant be served with a copy of the above and foregoing petition and) that defendant be cited to answer said petition and to appear before this Honat a date and time fixed by this court to show cause why a temporarpermanent injunction, and detlaratory judgment should not issue as prayed foplaintiff;7) for all ganeral and equitable relief, and;8) for all costs of these proceedings.

Respectfully submitted,

C.State Bar No. I 1 714600kkrause@cdkl awfirm. comCRADDOCK DAVIS & KRAUSE LLP3100 Monticello Avenue, Suite 550Dallas, Texas 75205

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TAYLOR, PORTER, BROOKS & PHTLLPS, L'L451 Florida St,, 8th FloorBaton Rouge, Louisiana 7080122s-381-0273225-346-8049 (fax)ATTORNEYS FOR PLAINTIFF

rr''vCase 3:13-cv-03813-B Document 1-3 Filed 09/19/13 Page 33 of 35


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VERIFICATION

STATE OF TEXASCOUNTY OF DALLAS

BEFORE ME, the undersigned Notary Public, duly commissioned and qualfor the County aforesaid, personally appeared Michael W. Crain, who being first did depose and say that he is Chairman of the Board of Trustees for Highland Park PChurch, a Texas corporation and the plaintiff herein, that he has read the above anPetition for Temporary Restraining Order, Temporary Injunction, Permanent InjunctDeclaratory Judgment, and is familiar with the facts alleged therein, and that allcontained in the aforesaid petition is true and correct to the best of his knowledge,and belief.

IJ

)))

Michael W. Crain

swoRN To AND SUBSCRIBED, before me, on thi,uyof septembDallas County, Texas.

%NOTARY PUBLICKAHEN M. LOOMISMY COMMISSION EXPIBES

September6,2014

UTtyCase 3:13-cv-03813-B Document 1-3 Filed 09/19/13 Page 34 of 35


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LOCAI, RULE 2.02 CERTIFICATp

UnderLocalRule2.02,IcertifythatlamunawafethatDefendantisreprescounsel. Prior notice is not appropriate because ineparable harm is imminent ainsufficient time to notiff the opposing party' Further, any greater time of notice wthe court,s power to grant relief because the subject matter of the applicatioaccomprished if further notice were required. The undersigned further represents thaof his knowledge, the case in which this apprication is presented is not subject to trLocal Rule 1.06.

Kent C.

v-Case 3:13-cv-03813-B Document 1-3 Filed 09/19/13 Page 35 of 35


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APPENDIX AMunicipal Addresses of HPPC "west Block" Properties

3908 McFarlin3912 McFarlin3916 McFarlin3920 McFarlin3926 McFarlin3928 McFarlin3543 UniversitY3917 UniversifY3921 UniversitY3929 UniversitY3909 UniversitY

3829 McFarlin3833 McFarlin3837 McFarlin

Municipal Addresses of HPPC Jenkins subdivision Properties



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EXHIBIT I)

Case 3:13-cv-03813-B Document 1-4 Filed 09/19/13


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r(,4

FORM NO. 353-3 - CITATIONTHE STATE OF TEXASTo: GRACE PRESBYTERY INCSERVE ITS REG AGENT CONNIE M TTIBB6100 COLWELL BLVD STE IOODALLAS TX 75039-3148GREETINGS:You have been sued. You may employ an attorney. If you or your attorney do not file aans\iler with the clerk who issued this citation by l0 o'clock a.m. of the Monday next folexpiration of trventy days after you were served this citation and petition, a default judgtaken against you. Your answer should be addressed to theclerk of the 298th District Court at 00 Commerce Street, Ste. l0l, Dallas, Texas 7520Said Plaintiff being IIIGI{LAND PARK PRESBYTERIAN CHURCH INCFiled in said Court l0th day of September,2013 againstGRACE PRESBYTERY INCFor Suit, said suit being numbered D:t!:!100the nature of which demand is as folloSuit on OTHER (CIIryL) etc. as shown on said petition REQ FORDISCLOSITRE,a copy of which accompanies this citation. If this citation is not served, it shall be returnunexecuted.WITNESS: GARY FITZSIMMONS, Clerk of the Disfict Courts of Dallas, County TexGiven under my hand and the Seal of said Court at offrce this l0th day of September, 20ATTEST: GARY FTTZSIMMONS, Courts of Dallas, County,

Case 3:13-cv-03813-B Document 1-4 Filed 09/19/13


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CaseNo.: DC-13'10605Court No.298th District CourtStyIC: HIGHLAND PARK PRESBYTERIAN CIIURCTT INC

CRACE PRESBYTERY TNC

OFFICER'S RETTIRN

20-_ ,at o'clo

vs.

Came to hand on thewithin the CountY of

daY ofat o'clock --.M' on the

by delivering to the within named

each, in person, a true copy of this citation together with the accompanying copy of this pleading, having firme in serving such process was ffiiles and my fees are as follows: To certify which witness my

For serving CitationFor mileageForNory

of

(Must be verified if served outside the StateSigrred and sworn to bY the said before me this day ofto certify which witness my hand and seal of ofce'

I

NotarY Public



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EXHIBIT E

STIERIFF'S RETURNCase 3:13-cv-03813-B Document 1-5 Filed 09/19/13


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Came to hand on the day ofo'clock M., and executed the aY of20 at by delivering to

the within named defendant-in person' a true copy

SheriffFEES:

20 at

of this writ.

, Texas.

Serving CopyMileage $sTotal $

TEMPORARY RESTRAINING ORDER - Form 322Case 3:13-cv-03813-B Document 1-5 Filed 09/19/13


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TIIE STATE OF TE>(ATO GRACE PRESBYTERY INCWHEREAS, in a certain suit pending inPlaintiff (sformost gracrous TEMPORARY RESTRAINING

Now, therefore, You, the said Counselors,employees are herebY commanded to DESIST and REFRAIN fromJudicial District of Texas at the Courthouse thereof, in the City

for the CountY of DallasOf DAIIAS, At '3OAM Ontil further order of the District Court to be holden within andwhen and where this writ is retumable.HEREIN FAIL NOT, under the penalty of the law'WITNESS: GARy FITZSIMMONS, Ctert of the District cowts of Datlas couGiven under my hand and the seal of said court, orr*" in the city of Daltas,2013. Attest: GARY FITZSIMMONSClerk, District Courts, Dallas County, Tex

Deputyt

'? ---



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EXHIBIT F

-- Cvll. Crse Ilnolurnrto:t SHaerct.ERt; l sii l,,'\'/'l): -lb It\lo0 Cor, R'f l/'-oil


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C.rUstt Nt'trcI\(toRS't'vl.cu r \lrtt(r o E5lt!'0 ks,rrrl( r ll rrcicr Co; rc\ Jr) r\llll,\ eir il casc inlbtnrtion shcel nusl bc conrplctetl nd subniltc(l rvhcn an originrl rctition or urplication is llct1 to initi;rtc a ncs' cir il.

hcllth clsc tt s{lel : posr--iudgnlcnt pctition lbr nroJilcrtion ot nrttion l'ol cnlbt ce ntcntis lletl irr r linril larv clsc. 'fhc

rhc tinle ol PersoI enlnfor of csell. co l'h int i lils)lPctilioncr (s): /) a ,5' l'lin\rlc: Ilnrui l: !Trrlu lV'D Ah Eothcr''I'arq 0 Dc lbntlun(s)i tcsPon'lc t(s): C ustoil'l Poue

('it StltciZip: [:u r son-cuslod)t4 tz61 I rc.Slete llar \o: I)rcsunrr'rl Fthbbo r


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EXHIBIT G

3L.lf\l".tCase 3:13-cv-03813-B Document 1-7 Filed 09/19/13 Page 2 of 4 P


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ORIGAUSE NO.HIGHLAND PARK PRESBYTERIANCHURCH INC.

Plaintiff,v.

GRACE PRESBYTERY, INC.Defendant.

IN THE DISTRICT COURT

DALLAS COUNTY, TEXAS

JT JUDICIAL DISTRICT$$$$$$$$

TEMPORARYRESWAfter considering Plaintiffs Original Petition for Tnporary Restrain

Prelirninary lnjunotion, Pernanent Injunction, and Declaratory Judgmrt filed by HighPrasbyterian Chwch, the Court finds there is evidence that harm is immine,nt to Plainthe court does not issue the temporary reshaining order, Plaintiff will be ineparabFwtlrer, an er( .parte order, wirout notic'e to Defendant is neccssry becse erenough time t give notice to Defendant, hold a hearing and issue a restraining orderineparable injury or damage would occrr as set forth in the Petition.

THEREFORE, IT IS HEREBY ORDERED, that this Temporary Reshainingand it is hereby issued against Grace Presbytery of the Presbyterian Church (USA), itagents, employees, and counsel, and any persons or entities in active concert or pawith the Presbytery, or acting by or through the Presblery or on its behalf or in its ste



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County to assert ownership, use or contol, or rights to determine ownership, use or any immovable property titled in the name of HPPC or to asstrt a trust on behPresbytery or other affiliated third party over immovable property titled in the name ofothe,nrise held by or for HPPC, the effect of which would be to place a cloud on the timmovable property, or othe,rrrrise interfee with or disturb plaintiffs ownership, use,disposition of plaintiffs personal or real property, or interfere with plaintifPs right tothe ownership, wo, co.nEol, or disposition of psonal or real property held by or forheld in the possession of, conhol of, or owned by or titled in the name of HPPC,

IT IS FURTI{ER ORDERED that Grace Presbytery of the Presberian Churand any peons or entities in active concert or participation with it, on its behalf or inwhether acting directly or indirectly, te tcmporarily enjoined from taking any action affect the property rights of HPPC, including but not limited to: 1) seeking to changeof HPPC; 2) initiating any disoiplinary or other retaliatory action against the employeesministers or menrbers of HPPC which directly or indirectly arises from or is connectproperty issue raised in, prompted by, or related to the subject matter of this litigdissolving HPPC or appointing or initiating processes leading to the appoinnadminisfrative commission to assert original jurisdiction, directly or indirectly, ovordsr to assume or effect conhol over the ownership, use, or disposition of the personproperty; or, 4) othenvise interfering with the normal duties and responsibilities of the



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Nothing in this Temporary Restraining Order shall preclude the Presbyteryecclesiastical action for non-pretextual ecclesiastical cause that is unrelated to thisany property issue raised in, prompted by, related to, or affecting the ownership, condisposition of the personal or real property held by, for, or in the name of HPPC.

IT IS FURTHER ORDERED that the clerk is to issue notice to Defendahearing on PlaintifPs application for temporary injunction is set for Lday o2013, aWo'cloct # .m. The purpose of the hearing shall be to determine wtemporary restraining order should be made a temporary injunction pending a fullmerits.

IT IS FURTHER ORDERED that this Temporary Restraining Order sheffective unless and until Plaintiff executes and files with the clerk a bond in theMoilars($s^*f

IT IS FURTHER ORDERED, that this Temporary Restraining Order expiredays hereafter from the date entered or until further order of this Court.

srcNED thi" /0 day of .7^ ,zor3,at/Zfo'crof.n



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EXHIBIT H

c-13-10006rscrscELLAil0uS EVEltlt0888 [email protected] 3:13-cv-03813-B Document 1-8 Filed 09/19/13 Page 2 of 3 P


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I lillillilillt ]ilililil ilt ilil ]t

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ffi IDBfEllDA.llATfT.q AALo: to!TI

oFFtctAL RECETPTDALLAS GOUNiTY OFFICIAL RECEIPT GARY FTTZSIM,MONS, DISTRICT CryorIADDOCK DAVIS & KRAUSE LLP



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)n Behalf Of HIGHIAND PARK PRESBYTERIAN CHURCH tNCDC-13-10605HIGHLAND PARK PRESBYTERIAN CHURCH INC vs. GRACE PRESBYTERY INCBond Account CASH BOND DEPOSTT (CtvtL)SUBTOTALPAYMENT TOTAL

CHECK (Ref #371 81 ) TenderedTotalTenderedChangeCashier AuditStation DC114 56984561ogt10t20't301:19 PM OFFICIAL RECEIPT



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EXHIBIT I

c-13-10006t tt),f FloAvlI,6 t40 t oIl\ CAUSE NO.

oCase 3:13-cv-03813-B Document 1-9 Filed 09/19/13 Page 2 of 36 P


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HIGHLAND PARK PRESBYTERIANICHURCH INC.Plaintiff,v.GRACE PRESBYTERY, INC.Defendant.

$AIIFIDAVIT OF MICITEAL \il. CRAIN

STATE OF TEXASCOUNTY OF DALLAS

BEFORE ME, the undersigned authority on this day personally appeared MICCRAIN, known to me, who after being by me first duly swom hereby deposes and says:

My name is Michael W. Crain, and I am the Chairman of the Boad of TrHighland Park Presbyterian Church Inc., Plaintiff in the above-captioned movorthc age of eighteen (18) years, haveneverbeen convictod of a crime ancompetent to make this affidavit.I am duly qualified, competent and authorize to make this affidavit, the factae within my personal knowledge and are true and correct.I have reviewed the attached Plaintiffs Original Petition and Application forRelief and specifically affirm the information contained in paragraphs 7 throuparagraphs 55 through 69 as true and correct to the best of my knowledge, inand belief.

4. Further Affiant saith not. I,JMICHAEL W. CRAIN

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o oCase 3:13-cv-03813-B Document 1-9 Filed 09/19/13 Page 3 of 36 P


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CAUSE NO. DC:

HIGHLAND PARK PRESBYTERIANCHURCH INC.Plaintifi,

IN THE DISTRICT COURT

DALLAS COUNTY, TEXASv.

GRACE PRESBYTERY, INC.Defendant. JUDICIAL DISTRICT

PLAINTIFF"S ORIGINAL PETITION ANDAPPLICATION FOR IN.I,JNCTIVE RELIEF

TO THE HONORABLE JUDCE OF SAID COURT:plaintiff Highland Park Presberian'Church Inc., a Texas nonprofit corpcomplains of Defendant Grace Presbytery, Inc. and for cause of action respectfully alleges

l.pIscgyER,Y cONrB9L PLAI{ LEVEL 3l. Discovery will be conducted under Level 3 of Rule 190 of the Texas R

Civil Procedure.il.

REOU.E-ST FOR DTSCLOSURE

2. Defendant Grace Presbytery, Inc. ("Presbery" or "Defendant") is requdisclose, within fifty (50) days of service of this Request, the information and mdescribed in Tex. R. Civ. P. 19a.2(a)-(l). Copies of any documents produced in resp

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o oIII:



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PARTIES3. PlaintiffHighland Park Presberian Church Inc. ('HPPC or Plaintiff') is

not for profit corporation located in Dall.4, Defendant Grace Presbytery, lnc., at all times material to this action, wasTexas nonprofit corporation doing busincss in Dallas County, Texas. Defendant may beappear by serving its registered agent for service of process: Connie M. Tubb, 6100Blvd., Suite 100, Dallas, Texas 75039-3148.

ry.JURISDICTIqN AID VENUE5. This Court has jurisdiction based on the Texas Constitution and laws of tof Texas, and these claims are within this Court's jurisdictional limits. Plaintiffbrings th

for injunctive and declaratory relief under the common and statutory laws of the State oand the United States of Amsrica. (See, e.g. Serbian Eastern Orthodgx Diocese v. Miliv426 U.S. 696 (1976); Jones v. Wolf, ,143 U.S. 995 (1979), andi Brown v. Clark, 102 T334,115 W. 360 (1909). Plaintiffseeks monetary relief of $100,000 or less and non-mrdlief. 6. Venue is proper in Dallas County pursuant to Tex. Civ, Prac. & Rer$15.001, et seq.

v.FACTS

o olocated at 6100 Colwell Blvd., Suite 100, Irving, Tx 75039-3t48: The PCUSA, headq



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in Lexington, Ky, was formed in 1983 by the merger of the Presberian Church in thStates (the pCUS, or southern branch) and the Presbyterian Church in the United SAmerica (the UPCUSA, or northem branch). Upon formation of the PCUSA, the PCUSUPCUSA both ceased to exist as separate denominations, and Grace Presbery became

administrative unit of the PCUSA. The PCUSA cunently has approximately 10,500churches located throughout the United States, including the State of Texas and DallasAlthough the national constitution of the PCUSA, The Book of Order, was amerided totrust in favor of the pCUSA over all property held by or for particular churchcs that are

with the PCUSA, authority under the Book of Order to waive the alleged trust oenforcement against a particular chrrch is granted to the presbery in whose geographia particular church is situated.

8. Highland Park Presbyterian Church (or "HPPC") is a particul churcPCUSA and is a Texas nonprofit corporation domiciled in Dallas County. Prior to its awith the PCUSA in 1983, HPPC was a member church of the PCUS. HPPC was first oin 1926 and first incorporated on January 31,1928, as "Highland Presberian Churchvariously amended or restated its articles of incorporation, or reincorporated, in 1978, 12006, The members of the local church corporation are all those who are on the activthe local congregation. HPPC, located within the geographic bounds of Grace Presby

o oA. TIIE ARTICLES OF INCORFORATION FOR HIGHLAI\D PARK



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PRESBYTERIAN CHURCHg. As more rlly set forth below, at all relevant times the articles of incorpo

Highland Park Presbyterian Church have provided that the mernbers of the corporatiocorporate board of trustees, wher managing the civil affairs of the oorporation, shall exepowers of the corporation. Said articles further grt, without limitation, exclusive andauthority on all property matters to the local board of trustees or local congregation withoauthority being made subject to any other ecclesiastical entity or to the provisionsdenominational constitution that are in conflict with the local church's articles of incorpowith the laws of the State of Texas.

10. At no time in its history have the articles of incorporation for HighlaPresberian Church contained any provision creating or establishing any trust, eximplied, in favor of a national denomination upon the property held by or for the local cits civil corporation. Said articles were never amended to add such trust provisos. Necongregation, the session (the goveming body of the local church for ecclesiastical mathe board of trustees of Highland Park Presberian Church, Inc. (the governing body ofcorporation for tnporal matters like propty) have ever adopted a congregational, secorporate resolution creating or assenting to a trust pertaining to property held by oparticular church.

I L As noted above, "Highland Park Presbferian Church" was first incorpo

o oChurch building is to be erected, of the estimated valuc of $60,000.00." Article IV provi



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the term for which this 1928 corporation is to exist is "50 years". No mention is madArticles of Grace presbytery, the Presbferian Church (USA), or their predecessorsmention made of any rst ovr local church property in favor of the PCUSA or its predeand enforceable by Grace Presbytery

12. Fifty years later "Highland Park Presberian Church" amended and rcsarticles of incorporation, on January I , 1978. Article III provided in relevant part that theand pgrpose of the corporation would be to, "encourage, support, maintain and prescrvworship in the presbyterian Church". Aficle III(a) and (b) gave exclusive and plenary aon all property mattert, both real and personal, to the corporation, subject only tnonprofit corporation law. The articles of incorporation do not make the exerciscorporation's powers with respect to proprty subject to any ecclesiastical provisions oecclesiastical entities beyond the local "Highland Park Presberian Church". The onlyof any other ecclesiastical entity is found in Article VI, which states that "the business anof the corporation shall be managed by a board of trustees comprised of five penons, eotherwise provided by the Book'of Church Ordsr of the Presberian Church in thStates". This Article, howev, does not say, "as that Book of Church Order may be afrom time to time", for example, nor otherwise subordinate the managetnent, cooperation of the civil corporation to a ssparate religious charter. Article VIII provided th

omention made of any Erst over local chwch property in favor of the PCUSA or its pred



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and enforceable by Grace Presbflery.13. On Septnber 27 , 1981, Highland Pak Presberian Church amended itof incorporation to newly provide that it pledged the assets of the corporation foperforming the general religious fi,nctions set forth in Article III of its 1978 Articlesnewly provide that, in the event of dissolution, recipirt organizations of any distribassets must qualify for an exonption from Texas property taxation under the Texas procode. As before, all such potortial distributions continued to be at the exclusive discretiotrustees of the corporation and would be in accordance with a plan of distributionpursuant to Texas nonprofit corporation law, No mention is made in the Aficles oPresbytery, the Presbyterian Church (USA), or their predecessors, nor is mention madtrust over local church property in favor of the PCUSA or its predecessors and enforcGrace Presbery.

14. On Novenber 14, 2006, Highland Park Presbyterian Church amenrestated its articles of incorporation. New Article III defines the objects and purposecorporation to, "encourage, support, maintain and preserve public worship. The asproperties of the corporation are hereby pledged for use in performing its exernpt functiomention is made in the Articles of a particular denomination. Exclusive and plenaryfor all corporate matters authorized under Texas non-profit corporation law, including

ocorporation, distribution of all corporatc assets shall be made exclusively by thc b



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tnstees, at its sole discretion, to organizations in the state of Texas organized andexclusively for religious, charitable and/or educational purposes that are described in501(cx3) of the Federal Tax code and that are qualified for exnption from Texasturation under the Texas property tan code, No mention is made in the ArticlesPresbery, the Presbyterian Church (USA), or their predecessors, nor is mention madtrust over local church property in favor of the PCUSA or its predecessors and enforcGrace Presbytery.

15. On August 31,2006. the board of trustees of the church corporationamended and restated bylaws (200 bylaws). Article I, Section 2 of the 2006 bylawsthe corporation will be "operated exclusively for religious, charitable and educationalwithin the meaning of Section 501(cX3) of the Internal Revenue Code of 1986, as ameNo mention is madc anywherc in the 200 bylaws of Grace Presbytery, the Presbyteria(USA), or their predecessors, nor is mention made of any trust over local church prfavor of the PCUSA or its predecesson and enforceable by Grace Presbytery.

16. Article I, Section 4 of the 200 bylaws provides that all members on troll of the congregation of Highland Pak Presbyterian Church shall be membecorporation (which corDoration shqll h ")'17. Article II of the 2006 bylaws states in Section I that the duties and respo

o oshall have plenary and exclusive authority to act on behalfof the corporation:



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For buying selllng, and mortggng of the property for the Churchacquiring nd conveying title to such property, the holdlng and defendlntld to thi srme, and the manrging of ony permrnent speclal funds entrusteto them for the furthernce of the purposes of the Church. In buying sellingand mortgging real property on behlf of the Corporrtlon, the bord otrusteec shall ct solelv under the-uthoritv of the Church. granted in r dulconstltuted meeting of the congregrtion.B. T,HE PROPERTY OlryNED BY TIIGHLAI\D PARK PRESBYTERIAI CH18. The deeds for all real property owned and held by Highland Park PreChurch list the owner in title as "Highland Park Presbyterian Church, a Texas corporatmention is made of any particular denomination, district presbytery, or other ecclesiasticNone of the decds contain any trust language, use restictions or reservations of rights oone transfer restricting certain property for use as a church of unspecified nature.property owned and held by Highland Park Presbyterian Church falls into threecategories:

a) "Egg!-@gg" The main physical plant of Highland Park Presbyterian Churcthe sanctuary and associated buildings are located, commonly known as the "East Camsituated on two Eacts, to wit:

Tract One:BEING Tract No. l, of Univsity Lake Park and Highland Park PresberiaChurch Tracts, an Addition to The City of University Park, Texas, according tthe Plat thereof Recorded in Volume 4, Page 169, Map Records of Dallas CountyTexas; and containing 3.3,$416 acres of land, and being in the John Scurloc

oDallas, Texas, according to the Plat thereof Recorded in Volume 2, Page 299



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f"fp r*rr'of putl.r ounty, Texas; and containing 18,740 square feet of land,roi. ot less, and U"ing in th ohn Scurlock Survey, Atstract No. 1351, DallCo*ty, it*"r; and being the same property des.tiq.l in Quit Claim Deed filedOctob l, 1974, Volum 74lgl, Yage Zt+0, Deed Records of Dallas County,fex; an having an address of 3gt University Boulevard, University Park,Tex,75205.b) "@!d" HppC also owns a contiguous block that consists of eleven res

properties, commonly known as the "west Block". The municipal addresses of thesBlock" properties are set forttr in Appendix A, attached hereto and made a Prt hereof,,West Block,'properties are located within Block B of Windsor Place, an Addition to theUniversity park, Dallas County, according to the Map thereof recorded in Volurno 2,PaMap Records of Dallas CountY.

c) "Jerins propertiesu HppC also owns certain "Jenkins Subdivision" proconsisting of th,ree houses whose municipal addresses arc 3E29 McFarlin, 3833 McFa3g37 McFarlin, all being located on a contiguous block to the south of McFarlin, and beZ, g, and 9 in Jerikins Subdivision of Tract 3 of University Park and Highland Park PresChurch Tracts according to the Map recorded in Volume 4, Ptge 24, of the Map ReDallas County. These propei.ties are also listed in Appendix A, attached hereto and madhereof.

19. The estimated value of the real property of Highland Park Presberian Cthirty million dollars ($30,000,000.00). All of it, the land and all improvnents there

mem o o

enable us to erect and possess a House of wonhip arrd that in order to obtain such aid



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amount it would be neccssary for the Trustees of the church to executea bond in the am

$7,500.,, Repaymrt of the bond was to be secured by a lien on the chufch property. Haccording to the June 12, lg27 minutes, re-payment was required only if HPPC ceased csxistence or ,,the mortgage and property be alienated or abandoned, or the House of woralienated or abandoned as a House of Worship"'21. Grace Presbery, the PCUSA, and their predecessors have not provisubstantial financial support to HPPC in over eighty-five (85) years. HPPC has, howevits formation in 1926, made substantial financial contributions to Grace Presbytery, theand their predecessors. over the past fifteen years alone, from 1998 forward, HPPC hasto Grace presbyte,ry and to the PCUSA, in voluntary per capita contributions, voluntarygiving, and special offerings and other related giving and support, in excess of $3,000,00C. TTIE BASIS OF GRACE PRESBYTERY'S CLAIM TO THE PROPERIIIGHLA{D PARK PRESBYTERIATI CIIURCTI22, The Constitution of the PCUSA consists of two parts, the Book of Con(part t) and the Book of Order (part II). The Book of Confessions contains doctrinal stand statements of church governance (polity). The Book of Order focuses on church goand divides itself into three main sections: the Form of Government, the Directory ofand the Rules of Discipline. The Book of Order underwent substantial revision, effec2lll, and many of its former provisions that were retained were newly numbe

o o8.0201), which asserts that, "All pfoperty held by or for a particulu church .;. is held



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nevenhcless for the use and benefit of the Presbyterian Church (USA)." This clause is thfor the assertion by Grace presbytery of a right to assert control ovsr the use and disposall property held by or for HPPC, Inc. It is the position of HPPC, Inc., however, that thisand its predecessor added to the PCUS Book of Church Order in the last year of theexistrce, ae not applicable to plaintiffs property and are not legally enforceabl unConstitution or laws of the State of Texas.

24. The pCUSA Book of Ordsr contains a clause asserted by the denominpertain to ownership. G4.O2O7 (formcrly G-8.0600) alleges that a PCUSA presbytery (Grace presbytery) may dictate ownership of local church property located within the geobounds of the presbytery-under certain circumstances that the presbytcry can manufacreate. The pCUS Book of Church Order was amended in 1982/83 to add a similar clausOn information and belief, the PCUS Book of Church Order did not previously contain aclause. It is plaintiffs position that G-4.0207 and any predecessor clause in the PCUSChwch Order are not applicable to plaintiffs property and are not legally enforceable uConstitution or laws of the State of Texas.

25. C.4.0205 (formerly G-8.0301) of the PCUSA Book of Order pertains to dfrom the pCUSA and provides that when a local church ceases to bs a particular churcpCUSA its property shall be "held, used, applied, transferred, or sold as provided

oenforceable tnder the Constitution or laws of the State of Texas'

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26. Alttrough G-4,0206 (formerly G-8.0501) of the PCUSA Book of Order stthe witten pernrission of the presbytery is required bcfore a particular church can sell, mor othenvise ericumber any of its real property, Chapter 6 of the 1982/1983 edition of thBook of chursh order did notcontain such a requirnent but, to the contrary, stated theat 6-g, that ,Nothing in this chapter shall be construed to requirc a particular church toobtain the consent or approval of any church court above the level of the particular corder to buy, sell or mortgage ttre property ofthat particular chrch in tho conduct of its aa church of the PCUS."

27. In addition, other property provisions in Chapter VIII of the PCUSAOrder that are not substantially similar to provisions in Chapter 6 of the 1982/1983 editioPCUS Book of Church Order are also not applicable to Highland Park Presbyterian Chare not legally enforceable under the Constitution or laws of the State of Texas.

Zg. The Book of Order includes "Historic" (i.e., foundational) Principles oOrder. These basic pCUSA governing principles state at F-3.0101 that, as a matter offreedom, provisions of the denominational constitution are not to be enforced through thof civil courts. F-3.0101 states:

() Tht 6.God rlone is Lord of the conccience, and hth left it free fromthe doctrlne nd commandment of men which are in anythlng

Grace Presbytery's notice of removal

Documents

Transcript of Grace Presbytery's notice of removal