Thirty-seven Maryland churches sought to leave The United Methodist Church and take their properties with them, but the Appellate Court of Maryland has said the churches must pay to leave.
On Oct. 5, the state appellate court affirmed a lower court ruling that the disaffiliating churches are subject to the UMC’s Book of Discipline and its “trust clause,” including provisions mandated by regional conferences.
The UMC Book of Discipline says: “All assets owned by any Methodist Church … whether incorporated, unincorporated or abandoned shall be held by the trustees of the church in trust for the United Methodist Church and are subject to the discipline, usage and ministerial appointments of the United Methodist Church, as from time to time authorized.”
Maryland UMC policy required the churches exiting to pay 50% of the assessed value of the real property they wanted to retain, in addition to other payments required under the disaffiliation process. In 2023, the churches filed suit against the Baltimore-Washington Conference of the UMC, its board of trustees and Bishop LaTrelle Easterling.
That suit in Anne Arundel County Circuit Court in 2023 was decided in favor of the denomination by summary judgment. The court ruled the First Amendment’s ecclesial abstention doctrine prevented civil courts from resolving claims that require interpretation of church doctrine and governance.
Then the 37 churches appealed.
Now, the state appeals court has affirmed the denomination and agreed the ecclesial abstention doctrine precludes the court’s consideration of internal church workings.
One issue at play here is that the UMC previously allowed a temporary “exit window” that let thousands of churches exit with their property if they met specific exit terms. This was in recognition of a well-publicized schism in the UMC over issues of human sexuality.
That free exit window closed Dec. 31, 2023, and the UMC Judicial Council has declared the “trust clause” back in full force.
Courts in Florida, Georgia, Louisiana, North Carolina and Pennsylvania have ruled similarly to the Maryland courts.
In Maryland, the 37 congregations did not use the open window to exit because they were protesting the financial terms imposed by the Baltimore-Washington Conference. During this open window, the UMC allowed regional conferences to add local conditions. The BWC added a rule the congregations said made their exit practically impossible.
That special condition was the 50% property fee, which reportedly would have resulted in a combined $10.8 million payout to the conference. Rather than paying the 50% fee before the window expired, the 37 churches banded together and sued the conference, arguing the conference and bishop were violating the Book of Discipline and committing fraud by inventing financial penalties.
Now, the 37 churches face four options: (1) Pay the fees to exit; (2) Walk away from the denomination and their properties; (3) Stay in the denomination; or (4) Appeal to the Maryland Supreme Court.
None of the 37 churches has yet announced what action they may take. The Baltimore-Washington Conference of the UMC includes about 560 congregations.
Another 25 churches paid the required fees and left the regional conference of the UMC during the prescribed exit period.
The case is The Methodist Church of Cape St. Claire, et al v. The Baltimore Washington Conference of the United Methodist Church, et al.