Presbytery of Ohio Valley, Inc. v. OPC, Inc.
2012 Ind. LEXIS 638
Ind.2012Background
- Olivet Presbyterian Church (Olivet) and Presbytery of Ohio Valley/Synod of Lincoln Trails sue over ownership of Olivet’s Evansville property.
- Olivet owned the real estate; Presbytery and PC(USA) seek a trust or declaratory judgment divesting Olivet from the property.
- Olivet remained a PC(USA) member from 1983 to 2006; PC(USA) sought to treat the building as leased during settlement negotiations.
- PC(USA)’s 1981 Book of Order added trust provisions asserting property held for PC(USA) regardless of title.
- Olivet decided to disassociate in 2006; PC(USA) offered to release Olivet on condition of leasing terms, which Olivet rejected.
- Trial court granted Olivet summary judgment; appellate court reversed; case was remanded for factual resolution under neutral-principles of law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether neutral principles of law or polity controls the dispute | Presbytery: polity governs ownership | Olivet: neutral principles preferred | Neutral principles adopted; polity deferred to only where necessary |
| Whether Olivet created an express trust on its property | Stipulated minutes/bylaws imply trust in favor of PC(USA) | No signed writing or clear, unequivocal intent to create trust | No express trust established as a matter of law |
| Whether an implied resulting trust exists given conduct and history | Long relationship supports implied trust | Intent uncertain; no undisputed mutual intent | Fact issue remains; summary judgment improper on implied trust |
Key Cases Cited
- Jones v. Wolf, 443 U.S. 595 (U.S. 1979) (neutral-principles approach permissible; avoids ecclesiastical entanglement)
- Watson v. Jones, 80 U.S. (13 Wall.) 679 (U.S. 1872) (polity approach for hierarchical churches; defer to ecclesiastical authority where appropriate)
- Hull Mem’l Presbyterian Church v. Presbyterian Church in the U.S., 393 U.S. 440 (U.S. 1969) (First Amendment constraints; contextual guidance on church property)
- Melloh v. Gladis, 261 Ind. 647 (Ind. 1974) (trust formation and burden of proof in Indiana)
- Flying Squadron Found. v. Crippen, 201 Ind. 482 (Ind. 1930) (necessity of clear intent to create express trust)
- Ransdel v. Moore, 153 Ind. 393 (Ind. 1899) (read writings together when creating trust)
- Richards v. Wilson, 185 Ind. 335 (Ind. 1916) (required certainty of intent to create trust)
- Jones v. Wolf (Georgia context), - (-) (discussed for neutral-principles development in Jones)