Eastminster Presbytery v. Stark & Knoll
2012 Ohio 900
Ohio Ct. App.2012Background
- Eastminster Presbytery appeals a summary judgment against it in a legal-malpractice suit arising from a prior church-property dispute.
- Hudson Presbyterian Church disaffiliated from the PCUSA in 2006; the underlying case concerned whether HPC’s property was held in trust for the denomination.
- trial court granted HPC summary judgment; Eastminster previously had its challenge affirmed by this Court in Hudson Presbyterian Church (2009-Ohio-446).
- Eastminster filed a legal-malpractice action against Stark & Knoll and individual attorneys alleging, among other things, that inclusion of a complete Book of Order would have changed the outcome.
- the trial court, and the appellate court, held that Eastminster could not prove that negligence proximately caused any damages in the underlying case.
- the court applied the neutral-principles approach and held the 1981 Book of Order could not create an express trust without Eastminster’s (settlor) clear intent to create a trust.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proximate causation in legal malpractice | Eastminster argues but-for counsel's failure to include Book of Order, it would have prevailed | Stark & Knoll contends the underlying judgment would have remained the same absent evidence of a trust | Eastminster fails to prove proximate causation |
| Binding effect of Book of Order under First Amendment | Book of Order creates an express trust binding on the underlying dispute | Neutral-principles approach does not require deference to ecclesiastical documents | First Amendment does not require binding effect; assignment II overruled |
Key Cases Cited
- Hudson Presbyterian Church, 2009-Ohio-446 (Ohio Supreme Court (2009)) (framework for analyzing whether underlying case could be won; express trust analysis under Ohio law)
- Jones v. Wolf, 443 U.S. 595 (U.S. (1979)) (neutral-principles approach; trust must be embodied in legally cognizable form)
- Kelemen (Serbian Orthodox Church Congregation of St. Demetrius of Akron), 21 Ohio St.2d 154 (Ohio (1970)) (set out express-trust requirements under Ohio law; explicit declaration and conveyance)
- Hatch v. Lallo, 9th Dist. No. 20642, 2002-Ohio-1376 (Ninth District (2002)) (express trust requires clear expression of intent; not implied)