McNeal Stewart, Michael A. Carpenter, and Sheneen Haley v. Stan R. McCray and Canaan Baptist Church of Elkhart, Indiana, Inc. ( 2019 )

FILED
Dec 11 2019, 5:47 am
CLERK
Indiana Supreme Court
Court of Appeals
and Tax Court
APPELLANTS PRO SE ATTORNEY FOR APPELLEES
McNeal Stewart Patricia A. Mastagh
Elkhart, Indiana South Bend, Indiana
IN THE
COURT OF APPEALS OF INDIANA
McNeal Stewart, Michael A. December 11, 2019
1
Carpenter, and Sheneen Haley, Court of Appeals Case No.
19A-PL-149
Appellants-Defendants,
Appeal from the Elkhart Superior
v. Court
The Honorable Stephen R.
Stan R. McCray and Canaan Bowers, Judge
Baptist Church of Elkhart, Trial Court Cause No.
Indiana, Inc., 20D02-1804-PL-65
Appellees-Plaintiffs.
Friedlander, Senior Judge.
1
Although, under Indiana Appellate Rule 17, Michael A. Carpenter, an unpaid associate minister of Canaan
Baptist Church, and Sheneen Haley, a member of the congregation, are considered parties on appeal,
Carpenter does not participate in this appeal, and Haley was dismissed from the action at the trial court level.
See Ind. Appellate Rule 17(A) (providing that “A party of record in the trial court . . . shall be a party on
appeal.”).
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 1 of 34
[1] This matter stems from a years-long dispute between certain members of the
congregation of the Canaan Baptist Church, in Elkhart, Indiana (the
“Church”), and its pastor, Reverend McNeal Stewart, III (“Rev. Stewart”),
involving allegations that Rev. Stewart usurped the authority of the Church’s
board of directors and disregarded the constitution and bylaws of the Church.
The parties to the dispute participated in two separate actions that were filed in
the Elkhart Superior Court in July 2016 (Cause No. 20D02-1607-CT-149), and
in April 2018 (Cause No. 20D02-1804-PL-65). The first action involved a battle
for control of the Church’s finances and property as well as an attempt to
terminate Rev. Stewart from his position as pastor of the Church. The instant
appeal, however, is from the second action, at the conclusion of which the trial
court determined that Rev. Stewart was in contempt of court and ordered him
to serve a thirty-day sentence in the Elkhart County Jail.
[2] Rev. Stewart appeals, presenting several issues for our review, one of which we
find dispositive, that is, whether the trial court had subject matter jurisdiction
over the second action. Concluding that the trial court lacked subject matter
jurisdiction over the matter, we reverse and remand with instructions.
[3] We present the facts of this case. By way of background, and to aid the reader
in understanding the dispute within the Church, we begin with a brief
description of the Church and then set forth in some detail the Church’s
governance, according to its constitution and bylaws.
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[4] The Church is a Missionary Baptist Church that is incorporated as an Indiana
not-for-profit corporation. The Church follows a congregational mode of
governance, i.e., “a form of Protestant church government in which each local
church acts as an independent, self-governing body[.]” DICTIONARY.COM,
https://www.dictionary.com/browse/ congregational?s=t (last visited on Oct.
22, 2019). The Church has adopted, and loosely adheres to, a constitution and
bylaws (hereinafter, “Bylaws”). The preamble to the Bylaws states that “[w]e,
the Members of Canaan Baptist Church of Elkhart, Indiana, Inc. recognizing
that the Bible is the absolute standard of spirituality, morality, ethics, and the
guiding rule of law, order, and faith for all members, do hereby adopt the
following Constitution and Bylaws.” Appellant’s App. Vol. 3, p. 102.
[5] Article III of the Bylaws sets forth the Church’s articles of faith, stating in
relevant part that “[t]his Christian Organization accepts the Scriptures of the
Old and New Testaments as the inspired Word of God. This record of God’s
revealed actions in human history is the authoritative basis for this Church’s
doctrine and practice.” Id. at 104. Article 3.13, “A Gospel Church,” provides
that the Church is a “Gospel Church” and that the congregants believe that
[A] church of Jesus Christ is a congregation of baptized believers,
associated by covenant in the faith and fellowship of the Gospel;
observing the ordinances of Christ; governed by His law; and
exercising the gifts, rights, and privileges invested in them by His
Word; that its only scriptural officers are bishops or pastors, and
deacons whose qualifications, claims and duties are defined in
the Epistles to Timothy and Titus.
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Id. at 106-07. Under Article 3.16, “Civil Government,” the congregants believe
that
civil government is of divine appointment, for the best interest
and good order of human society; and that magistrates are to be
prayed for, conscientiously honored and obeyed; except only in
things opposed to the will of our Lord Jesus Christ, who is the
only Lord of the conscience, and the Prince of the Kings of the
earth.
Id. at 107.
[6] Article V addresses conflict resolution, providing that
[i]t is the responsibility of the Pastor and the Deacon Board to
handle all issues pertaining to church discipline. They shall
handle all such matters and dispense due disciplinary measures.
These are to be based on and in line with the New Testament teachings
and principles as implied in the Doctrinal Statement of the Church
regarding church discipline found in Matthew 18:15-22 and Galatians
6:1-5.
Id. at 109 (emphasis added). Article VI sets forth Church discipline.
Specifically, Article 6.1 states:
The Objective of Discipline- The objective and purpose of
discipline is to prevent, correct, restrain, or remove the evil that
may exist. To encourage and protect the right, and cherish the good for
the edifying of the body of Christ, that it may be perfect in love, and
without reproach. It is not to gratify personal prejudice or secure
any selfish ends. It is to reclaim the wandering, guide the wayward,
and secure the best spiritual interest of each member and the purity, good
order, and efficiency of the entire body.
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Id. (emphasis added). Regarding admonishment, the article provides:
1. You have firsthand knowledge of sin in the body of
Christ
(a) If you let it go: He may not be saved (James
5:16-20)
(b) He continues to live in sin (I John 1:6)
2. Deal with it!
(a) Reprove him privately (Matthew l8:16)
(b) He continues- Reprove him with 2 or 3
witnesses (Deuteronomy 19:15; Matthew 18:16)
(c) He continues- Reprove him before the Church
(Matthew 18:17, I Timothy 5:20)
Id. Matters of Church membership are found in Article VII. Article 7.3,
“Rights of Members,” provides in relevant part: “The church is a self-governed
body aided by the Holy Spirit, Holy Scripture and Pastoral Leadership.” Id. at
111.
[7] Article VIII of the Bylaws sets forth the officers of the Church and states that
there are only two “scriptural offices” within the Church—the pastor and the
deacon. Id. at 112. The article, however, provides for additional offices in the
Church, including the Board of Trustees.
[8] Article 8.4 provides that the pastor is “responsible for providing spiritual and
administrative leadership; to this end he serves as a preacher, teacher, servant
and steward, and must be uncompromising in preaching the gospel.” Id. at 113.
Articles 8.6 and 8.7 address the removal of the pastor, specifically:
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 5 of 34
The process for removing the Pastor, up to and not including the
final vote by the members in good standing is outlined in the
[2]
Church Personnel Manual. The Pastor may be subject to removal
for the following reasons:
A. Failure to adhere to the Word of God, Articles of Faith,
Baptist Doctrine, Spiritual and Moral standards as set
forth in this document.
B. Inability and/or lack of desire to perform the duties of the
Pastor.
C. Promotion of discord or lack of harmony within the
congregation thereby reducing the effectiveness of the
Pastor’s ministry and the church’s mission.
D. Revers [sic] to sin and worldly practices.
8.7 SPECIAL MEETING- A special meeting to retain or
terminate the employment of the Pastor is called by a simple
majority of the deacon board after all efforts to resolve the issues
that triggered the removal process as detailed in the Church
Personnel Manual is exhausted. The [P]astor does not have the
authority to cancel or moderate this meeting. The Chairman of
the Deacon Board or a deacon designated by the board may
moderate this meeting. This meeting will be advertised in the
Church Bulletin for at least two (2) consecutive Sundays.
To carry a vote to retain the Pastor or terminate his employment
requires 51% of the members in good standing for a quorum, and
51% of those present to carry a vote.
Id. at 114 (emphasis added).
2
The Church Personnel Manual was not included in the record.
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 6 of 34
[9] Under Article 8.10, the Deacon Board, which according to the Bylaws is
comprised of no more than twelve deacons, is charged with “assist[ing] the
Pastor in carrying out the spiritual and administrative duties in order to better
meet the needs of the [C]hurch.” Id. at 116. Deacons may be removed from
service for:
• Absence without good cause from services of the church for
three (3) consecutive months or more.
• Promotion of discord or lack of harmony with the teachings
of the Bible, Articles of Faith and spiritual and moral standard
of the church.
• Reverting to sin and worldly practices.
The Pastor and the Deacon Board will meet and define the
specific violation committed by the Deacon charged before any
contact concerning behavior of the Deacon by the church is
made.
Id. at 117. Article 8.11 addresses the Trustee Board, providing that the “Trustee
Board oversees the physical properties, financial assets and act [sic] as a bonded
legal agent given its authority to act on behalf of the [C]hurch after consultation
with the Pastor and Deacon Board.” Id. at 118. Trustees may be relieved of
service for the same transgressions as those set forth for deacons.
[10] Article 8.17 provides that the Board of Directors for the Church “shall consist
of the Pastor and selected members of the Deacon Board and the Trustee
Board.” Id. at 122. Any appointed deacon is eligible to serve on the Board of
Directors of the Church. The Pastor serves as the chairman of the Board of
Directors. The treasurer/financial secretary for the Church serves as the
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 7 of 34
Treasurer of the Board of Directors, and the Clerk of the Church serves as the
Board’s Secretary. Two members from the congregation also serve on the
Board. The Board of Directors is charged with managing the business and
affairs of the Church, specifically:
(a) Establishing and maintaining written programs and policies;
(b) Overseeing operations;
(c) Managing and reviewing budget and finance;
(d) Complying with laws and regulations;
(e) Adopting and amending the organization’s articles of
incorporation and constitution and bylaws;
(f) Managing constituency relations;
(g) Managing personnel (volunteer and paid);
(h) Conducting performance evaluations of staff and of the board
itself and
(i) Managing funding and fund raising.
Id. at 124.
[11] According to Article X of the Bylaws, two types of Church meetings may be
held, to which all of its congregants are welcome: 1) regular Church business
meetings (defined as a regularly scheduled meeting to discuss Church business);
and 2) special meetings (defined as a meeting to consider matters of a
significant nature). Id. at 128. Church business meetings are to take place on a
monthly basis. The Bylaws specify that the “moderators to conduct meetings
will be selected by the [P]astor and the [D]eacon [B]oard. The agenda and how
the meeting will be run will also be set by the [P]astor and the [D]eacon
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 8 of 34
[B]oard.” Id. Regarding special meetings, notice of special meetings is to be
given forty-eight hours in advance of the start time for the special meeting. The
Pastor, the Deacon Board, and the Church membership all have the right to call
a special meeting.
[12] Having addressed the Church’s governance, we now turn to the series of events
and the complicated procedural history that gave rise to the instant appeal.
[13] At some point during Rev. Stewart’s tenure as pastor of the Church, his
relationship with certain deacons deteriorated, and the congregation became
fractured. The deacons at odds with the pastor were Lawrence Burns, the
Deacon Board chairman, and Ron Davis, James House, Curtis Brown, and
Stan McCray—all members of the Deacon Board. These deacons also
constituted the majority of the Board of Directors of the Church.
[14] The first legal action against Rev. Stewart (and other defendants) was filed in
the Elkhart Superior Court in July 2016 (hereinafter referred to as “Canaan I”)
by congregants who were “various long-time members and officers of [the
Church]. The majority of them [were] deacons or deaconesses of the [C]hurch,
and a number of them . . . served in various other capacities, including as
members of the [C]hurch’s finance committee, [B]oard of [T]rustees, and
choir.” Id. at 36. The defendants in the action, in addition to Rev. Stewart,
included certain “members of [the Church’s B]oard of [T]rustees and [B]oard of
[D]irectors, and a deacon of the [C]hurch.” Id. Canaan I involved multiple
issues, including a dispute over the ownership of the real estate upon which the
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 9 of 34
Church and the parsonage sit, as well as all the personal property associated
with the Church; the removal of the Church deacons from their management of
the Church’s finances; the battle for control of the Church’s finances; and an
attempt by the deacons to terminate Rev. Stewart’s employment as pastor of the
Church.
[15] A hearing on the matter was held on October 3, 2017. On October 31, the trial
court issued extensive and detailed findings of fact and conclusions thereon,
concluding in relevant part that the Church owned the real estate and the
personal property associated with the Church; the removal of certain deacons
from the Deacon Board was a nullity; and the attempted termination of Rev.
Stewart by certain members of the Deacon Board was of no consequence, and
Rev. Stewart remained the pastor of the Church. The trial court ordered the
Church to conduct an election on December 2, 2017, for the appointment of
officers to manage the Church’s financial accounts and other property and file a
written summary of the election results with the court within seventy-two hours
of the vote. Deacon Stan McCray was elected as the financial secretary for the
Church at the December 2, 2017 election. By his election to the office of
financial secretary, and pursuant to the Bylaws, McCray was also the treasurer
3
for the Church.
3
Stan McCray was the plaintiff in the second action filed in the Elkhart Superior Court and is the appellant
in the appeal before us.
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 10 of 34
[16] On March 27, 2018, the Canaan I plaintiffs filed a verified emergency motion to
compel compliance with the trial court’s October 31, 2017 order or, in the
alternative, a petition to issue a rule to show cause. The plaintiffs alleged that
Rev. Stewart continued to “blatantly disregard [the trial court’s October 31,
2017] Order to the extent that the very existence of [the Church] is threatened.”
Appellees’ Amend. App. p. 104. More specifically, the plaintiffs alleged (in
relevant part) the following:
Despite requesting this Court to declare that Canaan Baptist
Church had bylaws predating this lawsuit and to determine
which of two sets of bylaws was in effect, the Defendants now
refuse to acknowledge and follow the bylaws. The other
Defendants actively support Stewart’s statements and encourage
the membership to follow his leadership; engage in decision
making processes that contravene the bylaws; and make
governing decisions that are not in compliance with the bylaws.
The Defendants’ disrespect and disregard is so blatant that it even
extends to the Court. McNeal Stewart has made repeated
comments that Canaan Baptist Church will not be governed by
the bylaws or by man, including this court. These statements
have been made publicly and in communication with church
members.
Also, in discussing the recent improperly conducted [proceeding
to exclude] a Plaintiff from [Church] membership . . . , Stewart
stated that he didn’t care if the Plaintiff ran to [the trial court
judge] because, “that white man ain’t God, and he can’t remove
me from Canaan, and I ain’t goin [sic] nowhere until my
assignment is up and I’m just getting warmed up.”
Id. at 107 (internal citations omitted). The Canaan I plaintiffs asked the trial
court to, among other things, direct the Canaan I defendants to acknowledge
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 11 of 34
and comply with the Church’s Bylaws, and/or show cause as to why the
4
defendants should not be held in contempt of court.
[17] Before the trial court could address the plaintiffs’ March 27, 2018 emergency
motion to compel, the Board of Directors for the Church voted on April 7, 2018
to impose disciplinary and corrective action (“Disciplinary Action”) against
Rev. Stewart and to suspend Rev. Stewart from his duties as pastor, with pay,
5
for approximately thirty days—from April 7, 2018, through May 7, 2018. The
notice of Disciplinary Action that was issued to Rev. Stewart informed him that
it was a “zero tolerance suspension and any violation of the terms of this
suspension will result in an immediate additional and unpaid suspension of
sixty (60) days duration.” Appellant’s App. Vol. 2 p. 65. On April 11, 2018,
the vice-chairman of the Board of Directors sent a letter to Rev. Stewart,
informing him that because he had violated the Disciplinary Action, his
suspension was extended for an additional sixty days and that he would not
receive a salary during the extended suspension period. At the time the sixty-
day suspension was imposed, the trial court had yet to address the pending
motions in Canaan I.
4
Prior to the filing of the March 27, 2018 verified emergency motion to compel, the Canaan I plaintiffs filed a
petition for rule to show cause against a member of the Board of Trustees (on November 15, 2017), a petition
for rule to show cause against Rev. Stewart (on January 19, 2018), and an emergency motion for a temporary
restraining order against Rev. Stewart (on January 31, 2018).
5
A separate disciplinary action and suspension was issued against the associate minister.
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 12 of 34
[18] On April 12, 2018, Deacon Stan McCray (and the Church) initiated a separate
action in the Elkhart Superior Court (hereinafter, “Canaan II”) against Rev.
Stewart, Reverend Michael A. Carpenter (the associate minister for the
Church), and Sheneen Haley (a congregant) by filing a “Verified Complaint for
Temporary Restraining Order, for Temporary and Permanent Injunctive Relief,
and for Damages and Attorney’s Fees.” Id. at 15-29. In their complaint, the
Canaan II plaintiffs alleged that Rev. Stewart interfered with the function of the
Board of Directors and failed to abide by the Disciplinary Action that was
issued by the board. More specifically, the complaint maintained the following:
a. On April 8, 2018, Stewart was present at the Church
premises and assumed the pulpit during worship services
causing extreme disruption to the services;
b. During his time in the pulpit on April 8, 2018, Stewart
waved the Disciplinary Corrective Action And Suspension
in front of the congregation; told the Board of Directors
that it meant nothing; that the Board of Directors could
take it in front of [the trial court judge] and tell Judge
Bowers that Stewart says it means nothing.
c. During his time in the pulpit on April 8, 2018, Stewart
further proclaimed that he and the [associate minister]
were engaged in spiritual disobedience and would not
recognize the authority of the Board of Directors.
d. From and after April 8, 2018, Stewart continued to
undertake the duties and responsibilities as the Pastor of
[the Church].
e. On April 8, 2018, Stewart utilized social media to
advocate for his position;
f. Stewart announced his intent to conduct a [C]hurch
meeting on April 15, 2018, for the avowed purposed [sic]
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 13 of 34
of taking a “vote of no confidence” and doing away with
the Board of Directors of [the Church].
Id. at 19. The plaintiffs sought the trial court’s enforcement of the Disciplinary
Action that had been imposed on Rev. Stewart, that is, the thirty-day paid
suspension and the sixty-day unpaid suspension. Rev. Stewart filed his
response to the complaint on April 16, 2018.
[19] A hearing on the matter was held on April 17, 2018. On the following day,
April 18, 2018, the trial court issued its order, enforcing the thirty-day paid
suspension but declining to enforce the sixty-day unpaid suspension. The
Court’s order also barred Rev. Stewart (and the associate minister) from
entering the Church’s premises until May 8, 2018. The order reads as follows:
GRANTED, from the bench, the [Canaan II] Plaintiffs’ request
for a temporary injunction regarding enforcement of the 30-day
paid suspensions of the Defendants that the church’s board of
directors imposed on April 7, 2018; and DENIED the Plaintiffs’
request for a temporary injunction concerning the 60-day unpaid
suspensions the board purported to impose for the Defendants’
alleged noncompliance with the terms of the board’s April 7
suspensions of the Defendants. Hence, in accordance with the
terms of the board’s suspension, the Defendants are hereby
suspended with pay until May 7, 2018.
During the period of their suspension, they are barred from the
premises of the church, from using the church van, and from
conducting any business on behalf of the church. They may
resume their responsibilities to the church on May 8, 2018 and
reenter the church premises on that date. Further, this order does
not bar the Defendants from the church parsonage or the rental
property where [the associate minister] resides.
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Finally, the Court stresses that if the Plaintiffs’ objective is to remove
Reverend Stewart, the appropriate mechanism by which to do so is a
properly noticed and conducted congregational meeting. No Court can or
should attempt to run a church or interfere in matters of faith. The scope
of a civil court’s involvement in church governance must be limited. But
the Court reminds the parties to act in accordance with the requirements
of due process and the governing documents adopted by the church.
Id. at 102-03 (internal footnotes omitted and emphasis added).
[20] Shortly after the trial court issued its April 18 order, the Canaan II plaintiffs
called a special meeting to take place at the Church on May 5, 2018, at 4:00
p.m., to determine whether Rev. Stewart’s employment as pastor of the Church
should be terminated. On April 26, 2018, Rev. Stewart filed with the trial court
in Canaan II a verified motion for preliminary injunction, seeking
a preliminary injunction:
(a) Declaring null and void the Notice of Special
Meeting for May 5, 2018[;]
(b) Restraining the Plaintiffs from conducting a Special
Meeting to conduct a congregational vote on
whether to terminate Rev. Stewart until such time
as Rev. Stewart and [the associate minister] can
attend the meeting;
(c) Requiring the parties to finalize [the Church’s]
current membership list;
(d) Requiring the right to vote of all individuals
appearing on the current membership list be [sic]
recognized at any Special Meeting subsequently
called for the purposes of conducting a vote on
whether to terminate Rev. Stewart;
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(e) Permitting counsel for the parties to attend any
Special Meeting called for the purpose of
conducting a vote on whether to retain or terminate
Rev. Stewart; and
(g) [sic] Awarding all other relief as this Court deems
just.
Id. at 108-09. The Canaan II plaintiffs filed their response on April 27, 2018.
[21] On May 4, 2018, the trial court held a hearing, and that same day issued an
order making an exception to the temporary restraining order (granted by its
April 18, 2018 order) and permitting Rev. Stewart to attend the May 5, 2018
special meeting. The order reads in relevant part as follows:
This cause came on for hearing May 4, 2018. The Court met
with counsel for the parties. After hearing the arguments of
counsel, the Court orders that Rev. McNeal Stewart and Rev.
Michael Carpenter[, the associate minister,] may be present for
the congregational meeting scheduled for May 5, 2018 at 4:00
pm. Rev. Stewart and Rev. Carpenter may participate in the
meeting by their presence, by exercising their right to speak (5
minutes for Rev. Stewart and 2 min[utes] for Rev. Carpenter) and
by voting. This order is an exception to the Temporary
Restraining Order entered by the Court on April [18], 2018.
Id. at 125.
[22] On May 15, 2018, the plaintiffs filed a verified petition to issue a rule to show
cause as to why Rev. Stewart should not be held in indirect contempt of court
for violating the trial court’s May 4 order. The plaintiffs alleged the following
regarding Rev. Stewart:
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a. Before beginning his five minutes of allotted speaking time
[at the May 5 special meeting], Stewart stood up and read
the Court’s [May 4] Order aloud to the congregation.
b. Stewart then exceeded his five minute limit presentation
by over a minute, despite being told by the timekeeper that
his time had expired.
c. Stewart’s son[, the associate minister,] exercised his right
as a member to speak for two minutes. When the
timekeeper informed him that his time had expired,
Stewart demanded that his son be given additional time to
complete his speech. The son continued speaking.
d. Prior to the voting, Stewart stated to the congregation,
“please come and vote, please come and vote. If you have
an envelope that is a challenge be sure your name is on it
and its sealed. Those votes will be counted after the
count.” These instructions were contrary to the process
agreed to by the attorneys and the Court for the handling
of challenged votes.
e. After a member of the Board of Directors, who was
participating in the voting process, announced that the
results would not be announced until after the attorneys
and the Court had rendered a decision on the challenged
ballots (this statement was made before the votes had been
counted), Stewart informed the congregation, “We did not
do that for the Board of Directors vote on December 2, do
it the way it was done December 2.” Stewart then
announced, “You will count the votes tonight, you will
count the votes tonight.”
f. Stewart continued to instruct the congregation, stating,
“stop it everybody, pull back. They do not want to count
the votes tonight. Everybody pull back. Make sure you
vote and the votes will be counted. That’s what happened
on December 2 and if you do anything different the judge
will disqualify this. Everybody back away, everybody
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back away from the desk, they are trying to disqualify this
vote. Everybody back away from the ballot box.”
g. Stewart is then seen on the video that was recorded,
speaking with the police officer who was present, and
stating, “get the ballots and count them out.”
Id. at 142-43.
[23] On October 21 and 28, 2018, Rev. Stewart published a notice in the Sunday
Church bulletin, calling for a vote by the membership to take place on
November 4, 2018, to determine if the current Board of Directors should be
retained or dissolved. On Saturday, October 27, 2018, Rev. Stewart sent an
email to the Board of Directors that read:
The recent actions of this board along with the past year of
questionable conduct have precipitated my call for a vote on the
dissolution of the current board of directors. I cannot continue to
allow this board to endanger the well[-]being of this great gospel
institution called Canaan Baptist Church. At tomorrow’s church
service I will make the announcement of the agenda that will
govern the called church meeting, any board member who wishes
to speak will be given 5 minutes as I was during my retention
vote. I will present my evidence list of violations and allow for
congregants to have 2 minutes to speak on the behavior of this
current board first. This is an official email from the President of
the Board of Directors of the Canaan Baptist Church and its
rightful Pastor. I will abide by the vote of the church as I hope
you will. The votes of the membership will be counted directly
after the vote, you may select an individual to be at the table
during the vote and the count. This will all be done in front of
the congregation[;] no more back room shenanigans. Please
announced [sic] that person to me by email prior to the vote that
would like to sit at the table.
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I pray God’s mercy upon all who sincerely seek Him. All of our
actions should be driving [sic] by a motion to be pleasing in His
eyesight. I have the gravest of concerns for the motivations of
many board members that have shown a disrespect for standards
of behavior and practices for this His Church and a lack of love
as a governing principle for this board.
Appellant’s App. Vol. 3, p. 3.
[24] On October 30, 2018, the Canaan II plaintiffs filed a verified emergency motion
for injunctive relief to stop the planned vote to dissolve the Board of Directors.
The motion alleged that Rev. Stewart’s proposed vote to dissolve the board was
not valid and should not be allowed to occur. On November 2, 2018, the
parties stipulated that the plaintiffs’ motion for injunctive relief was granted and
that the congregational vote scheduled for November 4, 2018, would not take
place. The trial court memorialized the stipulation in a November 2, 2018
order.
[25] On November 5, 2018, the trial court issued an order addressing the
outstanding motions that had been filed in Canaan I. The November 5 order
also addressed the plaintiffs’ May 15, 2018 verified petition to issue a rule to
show cause that sought a finding of indirect contempt on the pastor’s part for
his alleged violation of the trial court’s May 4, 2018 order. In its November 5
order, the trial court eloquently provided the following, in relevant part:
These cases pose something of a moving target for the Court.
There have been numerous hearings to address numerous
pleadings. Attempts by the Court to implore the parties to live
out their faith and resolve their differences in peace and
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 19 of 34
brotherhood have fallen on deaf ears. This Court has no doubt
that each side believes that the problem rests with the other side.
Fault and responsibility are not so clearly divided in this case.
The Court will address all pending motions under advisement in
this Order.
*****
The Court has intentionally delayed entering an Order to address
the more recently filed pleadings in the hope that the parties
would resolve these issues based on the principles and findings of
fact set out in the original Order of October 31, 2017. The parties
apparently are unable to do so. Rev. Stewart and his faction
have argued correctly that it is not proper for the Court to
interject itself into matters of faith or the daily operations of the
church. The Court fully agrees and so stated in the October 2017
Order. The opposing faction of the church, led by the deacons of
the church, argues that Rev. Stewart has willfully ignored the
Orders of this Court and has violated fundamental principles of
fairness and due process. The Court agrees, in part, but hastens
to add that disrespect for the role of the Court and failure to
abide by the spirit of certain Court Orders, is insufficient to
support a finding of indirect contempt as broad as that sought by
the deacons’ faction.
Rev. Stewart appears to be oblivious to the fact that his heavy-
handed approach to the split in the [Church] body has
significantly contributed to the unholy mess in his congregation.
*****
Contempt
...
The Court has previously cautioned Rev. Stewart about his
meddling in the administration of the Court’s Orders. This Court
finds that Rev. Stewart participated in the meeting to an extent
that was not permitted by the Court’s Order. He unnecessarily
read the Court’s Order aloud to the congregation before
beginning his allotted five minutes to speak. Had the Court been
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 20 of 34
present, it would have advised Rev. Stewart that the reading of
the Order counted against his allotted five minutes. Excluding
time spent to read the Order, Rev. Stewart went over his allotted
time. While this violation may appear to be de minimis, it must
be viewed in the context of Rev. Stewart’s other actions,
including his attempt to dictate when the ballots would be
counted and his insistence that his son be allowed to violate his
allotted time. More importantly, Rev. Stewart usurped the role
of Deacon Lawrence Burns, the person who was properly
responsible to moderate the meeting. Rev. Stewart’s insistence
that no white judge could tell him or his church what it could do
is blatantly contemptuous of the Court. The color of the judge’s
skin has nothing to do with the Court’s decision. Rev. Stewart
should be more mindful of the color of the Judge’s robe. It is
disrespect for the position, not the person, which is
contemptuous here. The Court notes that it has never suggested
that it wanted to remove Rev. Stewart from his charge as pastor
of the [Church], that being the matter solely for the church
membership to determine in compliance with its own
Constitution and By-laws.
Additionally, [the Church] has formed a corporate entity with an
appropriate Constitution and By-laws. While those documents may
impact matters of church operation, they in no way involved the Court in
matters of doctrine or faith, except as the parties have agreed by creating
the corporate entity under which they operate. The sole purpose of the
Court has been to bring order out of chaos by requiring the parties to
follow their governing documents and established standards, such as
Robert’s Rules of Order in running their church meetings. As set out in
much greater detail in its October 2017 Order, the Court’s intervention in
this fashion was warranted by Rev. Stewart’s gross violation of due
process in conducting the meeting at which the deacons who are parties to
this action were removed from office. For example, one of the
deacons, Stanley McCray, was not permitted to speak on his own
behalf until after the vote was taken at a meeting Rev. Stewart
ran. When Rev. Stewart was questioned about this behavior
during an earlier hearing, he did not appear to recognize that his
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actions were in any way wrong. He has given little indication
since that time of recognizing that being the pastor of a church
does not permit him to trample on the rights of others.
Id. at 27-31 (internal footnote omitted and emphasis added).
[26] The trial court ultimately found Rev. Stewart to be in contempt of court,
ordered him confined to the Elkhart County jail for a term of thirty days, and
ordered him to pay $2,500.00 to the plaintiffs’ counsel. The court withheld the
imposition of the contempt commitment, however, thus providing Rev. Stewart
an opportunity to purge himself of the contempt, if he
issue[d] a formal written apology to the Court and assure[d] the
Court he [would] in the future, conduct the business of [the
Church] in accordance with the rule of law and the Orders of this
Court, i.e.[,] comply with the requirements of the Constitution
and By-Laws of the [C]hurch as they may be from time to time
amended and Indiana law governing not-for-profit corporations.
Id. at 31. The trial court, however, enjoined Rev. Stewart to “scrupulously
follow the requirements of: 1) The [Church’s] Constitution and By-laws; 2)
Indiana statutes governing the activities of not-for-profit corporations,
invalidating without limitation the procedures for electing, removing, or
replacing officers and directors; and 3) Specific Orders of this Court set out in
this Order.” Id. at 33-34.
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 22 of 34
[27] Rev. Stewart paid $2,500.00 to the plaintiffs’ counsel on December 4, 2018. He
6
filed his letter of apology with the trial court on November 9, 2018. However,
on November 4, 2018 (the Sunday before the trial court issued its November 5,
2018 order), a member of the congregation initiated a proceeding to form a
resolution committee for the purpose of removing four seated deacons—
including Deacon McCray—from their duties as deacons and as members of
the Board of Directors. This was done with Rev. Stewart’s knowledge but was
unbeknownst to the trial court. On November 12, 2018, and again on
November 15, 2018, Rev. Stewart sent emails to Deacons Stan McCray, Curtis
Brown, Lawrence Burns, and Ron Davis, informing them that they had been
suspended from their duties.
[28] On November 16, 2018, the plaintiffs filed with the trial court a verified petition
to issue a rule to show cause and an emergency request for injunctive relief.
The plaintiffs sought to block the vote to suspend the deacons from their
positions and also requested from the trial court an order:
1. For Rev. McNeal Stewart III to appear and show cause, if
any, why he should not be held in indirect contempt of
court; . . .
3. Enforcing the Court’s Order of November 5, 2018 by
ordering Rev. McNeal Stewart III to be immediately
6
On November 14, 2018, the trial court issued an order stating that Rev. Stewart had filed his letter of
apology but that the trial court found the letter “minimally satisfies the Court’s requirements for suspension
of the commitment for contempt.” Appellant’s App. Vol. 3, p. 77.
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confined to the Elkhart County Correctional Facility for a
term of thirty (30) days;
4. Injunctive relief nullifying the suspension of the Deacons
and prohibiting the Defendants from taking any action to
remove the Deacons or any member of the Board of
Directors without following the Constitution and By-laws
of [the Church]; Indiana’s Non-Profit statutes; and this
Court’s Orders;
....
Id. at 79-80.
[29] A hearing on the matter was held on January 4, 2019. The plaintiffs were
represented by counsel. Rev. Stewart was informed of his right to counsel,
however, he chose to appear as a self-represented litigant. At the conclusion of
the hearing, the trial court issued its order that provided in relevant part:
The issue before the Court is whether there was a violation of the
Court’s Order of November 5, 2018[,] which included a finding
of contempt and sanctions against McNeal Stewart. Those
sanctions included a 30[-]day commitment to the Elkhart County
Security Center, a $2,500 payment of attorney fees for the
opposing parties and requirements of a formal letter of apology
and the following of the requirements of the constitution and
bylaws of [the Church], the Orders of this Court and the law of
the State of Indiana as it pertains to a not for profit corporations
[sic]. Having heard the evidence[,] the Court concludes that
McNeal Stewart has violated the Order of the Court. The Court
now orders McNeal Stewart remanded to the custody of the
sheriff to carry out the 30[-]day sentence without good time
credit. The Court notes that the commitment pertains only to
[Canaan II] and not to [Canaan I].
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 24 of 34
Id. at 198.
[30] On January 8, 2019, Rev. Stewart filed his Notice of Appeal. That same day,
he filed with the trial court a “Motion for Bond Pending Appeal and Stay of
Order.” Id. at 199-202. The trial court denied his motion on the following day.
On January 16, 2019, Rev. Stewart filed with this Court a verified emergency
motion for stay and recognizance bond pending appeal. We granted his motion
on January 17, 2019, and set a recognizance bond of $100.00. The trial court
then entered an order setting Rev. Stewart’s bond at $100.00. Rev. Stewart
posted bond on January 18, 2019, and was released from jail. Rev. Stewart
now appeals.
[31] The specific issues Rev. Stewart raises on appeal, consolidated and restated, are
as follows:
1. Whether the trial court’s orders issued in Canaan II are
void ab initio because the trial court lacked subject matter
jurisdiction over the Canaan II action;
2. Whether the trial court abused its discretion when it found
Rev. Stewart in contempt of court for violating the trial
court’s November 5, 2018 order and ordered him to serve
thirty days in the Elkhart County jail;
3. Whether the trial court’s May 4, 2018 and April 18, 2018
orders denied Rev. Stewart due process of law “by being
issued without requiring [the] plaintiffs to post a bond
pursuant to Ind. Trial Rule 65(C)[;]” and
4. Whether Rev. Stewart is entitled to a refund of the
attorney fees he paid to the plaintiffs’ counsel.
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Appellant’s Br. pp. 4-5. Finding issue number one dispositive, we do not reach
issues two and three. We address issue four by separate order of this court.
Subject Matter Jurisdiction
[32] We now turn to whether the trial court had subject matter jurisdiction over
Canaan II to adjudicate the matter. Subject matter jurisdiction concerns the
power of the court to hear and to determine a general class of cases to which the
proceedings before it belong. Santiago v. Kilmer, 605 N.E.2d 237 (Ind. Ct. App.
1992), trans. denied. “When a court lacks subject matter jurisdiction, any action
it takes is void.” Perry v. Stitzer Buick GMC, Inc., 637 N.E.2d 1282, 1286 (Ind.
1994). The lack of subject matter jurisdiction can be raised at any time, and, if
the parties do not question it, the trial court or Court of Appeals is required to
consider the issue sua sponte. Albright v. Pyle, 637 N.E.2d 1360 (Ind. Ct. App.
1994). The issue of jurisdiction is a question of law. Nishikawa Standard Co. v.
Van Phan, 703 N.E.2d 1058 (Ind. Ct. App. 1998). Thus, because we are faced
with a pure question of law, our review will be de novo. Serletic v. Noel, 700
N.E.2d 1159 (Ind. Ct. App. 1998).
[33] The United States Supreme Court has long held that the First Amendment to
the United States Constitution, applicable to the states through the Fourteenth
Amendment, requires civil courts to refrain from interfering in matters of
church discipline, faith, practice, and religious law. Watson v. Jones, 80 U.S.
679, 20 L. Ed. 666 (1871). Thus, civil courts are precluded from resolving
disputes involving churches if “resolution of the disputes cannot be made
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 26 of 34
without extensive inquiry . . . into religious law and polity . . . .” Serbian Eastern
Orthodox Diocese v. Milivojevich, 426 U.S. 696, 709, 96 S. Ct. 2372, 2380, 49 L.
Ed. 2d 151 (1976). The basic law in Indiana is that courts will not interfere
with the internal affairs of a private organization unless a personal liberty or
property right is jeopardized. Lozanoski v. Sarafin, 485 N.E.2d 669 (Ind. Ct.
App. 1985), trans. denied. “Thus, the articles of incorporation and by-laws of a
not-for-profit corporation are generally considered to be a contract between the
corporation and its members and among the members themselves.” Id. at 671.
[34] We have held that “personnel decisions are protected from civil court
interference where review by the civil courts would require the courts to
interpret and apply religious doctrine or ecclesiastical law.” McEnroy v. St.
Meinrad Sch. of Theology, 713 N.E.2d 334, 337 (Ind. Ct. App. 1999), trans. denied,
cert. denied, 529 U.S. 1068, 120 S. Ct. 1675, 146 L. Ed. 2d 484 (2000).
Ecclesiastical matters include “a matter which concerns theological
controversy, church discipline, ecclesiastical government, or the conformity of
the members of the church to the standard of morals required of them.”
Watson, 80 U.S. at 733, 20 L. Ed. 666; see also Serbian Eastern Orthodox
Diocese, 426 U.S. at 713, 96 S. Ct. at 2382, 49 L. Ed. 2d 151 (specifying
ecclesiastical matters are “matters of discipline, faith, internal organization, or
ecclesiastical rule, custom, or law”).
[35] The United States Supreme Court, however, has instructed that the First
Amendment does not prohibit courts from opening their doors to religious
organizations. Presbyterian Church in the U.S. v. Mary Elizabeth Blue Hull
Court of Appeals of Indiana | Opinion 19A-PL-149 | December 11, 2019 Page 27 of 34
Memorial Presbyterian Church, 393 U.S. 440, 89 S. Ct. 601, 21 L. Ed. 2d 658
(1969); see also Konkle v. Henson, 672 N.E.2d 450, 455 (Ind. Ct. App. 1996) (First
Amendment “does not entirely prohibit courts from opening their doors to
religious organizations.”). Instead, a court can apply neutral principles of law
to churches without violating the First Amendment. Konkle, 672 N.E.2d
450. The First Amendment only prohibits the court from determining
underlying questions of religious doctrine and practice. Id. However, the
application of neutral principles of law to a church defendant has occurred only
in cases involving church property or in cases where a church defendant’s
actions could not have been religiously motivated. See Brazauskas v. Fort
Wayne–South Bend Diocese, Inc., 714 N.E.2d 253 (Ind. Ct. App. 1999), trans
denied.
[36] Rev. Stewart’s argument is, in essence, a challenge to the trial court’s subject
matter jurisdiction over the Canaan II action. He maintains that the trial court
“exceeded its subject matter jurisdiction” when it became involved in his
suspension from his Church duties and in the retention vote regarding his
continued employment, thus rendering the trial court’s orders in the matter void
ab initio. Appellant’s Br. p. 28. The plaintiffs (hereinafter referred to as
“McCray”) contend that the trial court’s orders in Canaan II “were properly
granted and are valid because they do not violate the church autonomy doctrine
and are within the [t]rial [c]ourt’s jurisdiction.” Appellees’ Br. p. 15.
According to McCray, this matter falls within the jurisdiction of the trial court
because the Church is incorporated under Indiana’s not-for-profit statutes, and
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the trial court’s determinations did not require it to delve into matters of
doctrine or faith. We disagree.
[37] In Stewart v. Kingsley Terrace Church of Christ, Inc., 767 N.E.2d 542 (Ind. Ct. App.
2002), this Court held that the trial court properly dismissed the minister’s
wrongful termination claim for lack of subject matter jurisdiction because the
trial court would have had to “engage in the impermissible scrutiny of . . .
doctrinal and/or church polity issues . . . .” Id. at 547. We noted,
The United States Supreme Court has long held that the First
Amendment to the United States Constitution, applicable to the
states through the Fourteenth Amendment, requires civil courts
to refrain from interfering in matters of church discipline, faith,
practice, and religious law. Thus, civil courts are precluded from
resolving disputes involving churches if “resolution of the
disputes cannot be made without extensive inquiry . . . into
religious law and polity . . . .” Accordingly, this court has held
that “personnel decisions are protected from civil court
interference where review by the civil courts would require the
courts to interpret and apply religious doctrine or ecclesiastical
law.”
Id. at 546 (citations omitted).
[38] Emmanuel House of Prayer Church of God in Christ, Inc. v. Hall, 787 N.E.2d 1020
(Ind. Ct. App. 2003), as corrected (June 17, 2003), involved an action to enforce
a settlement agreement between the church and a bishop. We summarized the
case as follows:
In this case, Bishop Hall’s complaint for injunctive relief requires
the trial court to interpret ecclesiastical doctrine. Specifically,
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Bishop Hall alleges that, as Jurisdictional Bishop of Indiana, only
he can appoint the lead pastor of the Church. As a result, Bishop
Hall’s complaint alleges that the church violated various
provisions within the Official Manual with the Doctrines and
Discipline of the Church of God in Christ (“the Official
Manual”) when it appointed Gregory Williams as lead pastor. In
addition, Bishop Hall has alleged that the Church’s actions have
had an adverse effect on the Church’s finances and property. As
a result, Bishop Hall requested that the trial court temporarily,
preliminarily, and permanently enjoin the Church “from
preventing the orderly and proper transition of pastoral
leadership,” and “from interfering with the orderly and proper
process of the Church of God in Christ, Inc. . . . .”
Id. at 1025 (internal citation omitted). We reversed the trial court’s order to
enforce the settlement agreement, finding that the trial court lacked subject
matter jurisdiction. We held that “[b]ecause there are few matters more
ecclesiastical in nature than selecting the lead pastor of a church, the trial court
erred when it accepted jurisdiction over the complaint.” Id.
[39] Here, we likewise find that the trial court erred in accepting jurisdiction over
McCray’s complaint. Canaan II was initiated by McCray because Rev. Stewart
allegedly would not abide by the Disciplinary Action that the deacons imposed,
specifically, the thirty- and sixty-day suspensions. Thereafter began the filing by
the parties of a series of pleadings with the trial court, seeking injunctive relief
to prevent one another from engaging in internal Church proceedings that
might result in the removal of individuals from Church leadership. However,
the substance of McCray’s claim in Canaan II does not allege a church property
dispute as that term has been employed in First Amendment cases. To the
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contrary, the overarching dispute is regarding who is entitled to control over the
Church—Rev. Stewart or certain deacons. As the Supreme Court explained
in Hosanna–Tabor Evangelical Lutheran Church & Sch. v. EEOC, 565 U.S. 171,
188-89, 132 S. Ct. 694, 706, 181 L. Ed. 2d 650 (2012),
Requiring a church to accept or retain an unwanted minister, or
punishing a church for failing to do so, intrudes upon more than
a mere employment decision. Such action interferes with the
internal governance of the church, depriving the church of
control over the selection of those who will personify its beliefs.
By imposing an unwanted minister, the state infringes the Free
Exercise Clause, which protects a religious group’s right to shape
its own faith and mission through its appointments. According
the state the power to determine which individuals will minister
to the faithful also violates the Establishment Clause, which
prohibits government involvement in such ecclesiastical
decisions.
[40] Regarding subject matter jurisdiction over complaints that allege a failure by a
church to follow its prescribed procedures, we find the analysis in a case from a
sister jurisdiction to be applicable and persuasive. In Hundley v. Collins, 131 Ala.
234, 32 So. 575 (1902), the petitioner, following a meeting of the congregation,
was removed as a member and deacon of the Christian Church of Huntsville
based on a disorderly conduct charge. The petitioner petitioned the trial court
for a writ of mandamus, alleging that the church had improperly removed him
as a member and deacon because he was not given notice of the meeting and
the congregation had not actually voted on the charge of which he was accused.
The trial court denied the petition, and the petitioner appealed. The Alabama
Supreme Court affirmed the judgment denying the petition, stating:
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There were no property interests involved, nothing touching
what are termed the temporalities of the church, as
contradistinguished from its spiritualities. The petitioner had no
pecuniary interests, in any direction, involved in the proceeding,
and it did not touch any of his civil rights at any point. It may
be, the church proceeded irregularly according to common usage
in such cases; but it is averred, that this church “is of the
denomination known as ‘Disciples of Christ,’ of which
Alexander Campbell was the original preacher, if not the
founder,” and that “each church is of itself independent, not
subject to the control of any higher or other ecclesiastical
judicature.” As an ecclesiastical body, therefore, it was a law
unto itself, self-governing and amenable to no court, ecclesiastical
or civil, in the discharge of its religious functions. It could make
and unmake its rules and regulations for the reception and
exclusion of members, and in reference to other matters; and
what other body religious or civil could question its right to do
so? Certainly, if it violated no civil law, the arm of civil authority
was short to reach it. Admitting, therefore, as we must on
demurrer, that petitioner had no notice of this proceeding, and
that it was irregular according to common usage, the church
being independent, and not subject to higher powers, and being a
law unto itself for its own procedure in religious matters, what it
did towards the expulsion of petitioner was not unlawful, even if
it was not politic and wise. If the civil courts may in this instance
interfere to question the exclusion of petitioner, they may do so,
in any instance where a member of that or any other church is
removed, on the allegations of irregular and unfair proceedings
for the purpose. This would open a door to untold evils in the
administration of church affairs, not consistent with the
principles of religious freedom as recognized in this country,
where there is no established church or religion, where every
man is entitled to hold and express with freedom his own
religious views and convictions, and where the separation of state
and church is so deeply intrenched in our constitutions and laws.
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These views are in accord with the decisions of other States and
of the Supreme Court of the United States.
Hundley, 131 Ala. at 242-43, 32 So. at 578. Accordingly, the Alabama supreme
court held that the trial court had no jurisdiction over the matter, even where it
was alleged that the petitioner’s removal from the church was not in accordance
with church procedure.
[41] The instant matter arises from Rev. Stewart’s suspension from his pastoral
duties for his alleged failure to act in accordance with the Church’s Bylaws.
Regardless of whether the parties, at times, failed to adhere to the Church’s
Bylaws, at bottom, this is a dispute over the Church’s leadership. As such, this
matter, at its core, is purely ecclesiastical and one which the trial court lacked
subject matter jurisdiction to adjudicate.
[42] Based on the foregoing, we conclude that the trial court erred in finding Rev.
Stewart in contempt of court and ordering him to serve thirty days in the
Elkhart County jail because it did not have subject matter jurisdiction to decide
Canaan II. Thus, we reverse, remand, and instruct the trial court to dismiss
Canaan II (Cause No. 20D02-1804-PL-65). All orders issued by the trial court
in Canaan II are void ab initio. By separate order of this court, and issued
simultaneously with this opinion, McCray’s counsel is ordered to return to Rev.
Stewart the $2,500.00 that Rev. Stewart paid to counsel on December 4, 2018.
[43] The judgment of the trial court is reversed, and we remand for further
proceedings consistent with this decision.
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Kirsch, J., and Altice, J., concur.
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