Texas Supreme Court Rules UMC Can Pursue Lawsuit Against Southern Methodist University Over Denominational Departure

The Texas Supreme Court recently delivered a significant ruling regarding the relationship between Southern Methodist University (SMU) and The United Methodist Church (UMC). This decision allows a regional body of the UMC to pursue legal action against SMU as the university attempts to disaffiliate from the denomination, a move that has sparked considerable debate within both the educational and religious communities.

Founded in 1911 by the UMC’s predecessor, SMU has a rich history intertwined with the church. It houses the esteemed Perkins School of Theology, one of 13 seminaries supported by the denomination’s Ministerial Education Fund. As of recent reports, SMU boasts an impressive endowment of $2.12 billion, employs over 1,700 staff members, and caters to approximately 12,000 students. The university is also home to the George W. Bush Presidential Library, further cementing its status as a notable institution in Dallas, Texas.

The court’s ruling, issued last Friday, pertains to the case of Southern Methodist University and Paul J. Ward v. South Central Jurisdictional Conference of the United Methodist Church and Bishop Scott Jones. Justice Debra Lehrmann, who authored the majority opinion, affirmed that the UMC South Central Jurisdictional Conference possesses the statutory authority to sue SMU. This legal standing allows the conference to pursue a breach-of-contract claim, arguing that it is a third-party beneficiary of SMU’s articles of incorporation.

Justice Lehrmann clarified that while SMU is not obligated to act solely for the benefit of the conference, its articles of incorporation create a contractual relationship with the state of Texas. This relationship grants the conference the ability to seek legal recourse in this matter. However, the ruling also favored SMU in part, as the court dismissed the UMC’s claim that SMU had knowingly filed false documents when altering its governing structure.

In a dissenting opinion, Justice Jane Bland expressed concerns that the court’s decision may set a precedent for allowing private contract claims within nonprofit organizations, suggesting that the statutes governing nonprofits do not confer such rights automatically. She argued that mutual agreements should establish contract rights, not state enforcement.

Following the ruling, SMU expressed satisfaction with the court’s decision to dismiss the false-filing claim, reiterating its commitment to its Methodist heritage while moving forward with its mission to provide quality education. “SMU remains proud of its Methodist heritage as we move forward with advancing SMU’s mission and providing enriching education for all students,” stated Megan Jacob, SMU’s director of media and community relations.

The conference responded by affirming that the ruling supports their position that SMU must seek approval from the SCJ for any amendments to its governing documents. They expressed a desire for a peaceful resolution to maintain the historic connection between the university and the church.

This legal battle comes against the backdrop of ongoing debates within the UMC regarding issues such as same-sex marriage and the ordination of LGBTQ+ individuals. In 2019, the UMC General Conference passed "The Traditional Plan," which reaffirmed existing rules on marriage and ordination, leading to significant tensions within the denomination. The SMU Board of Trustees subsequently asserted their authority over the university’s governance, setting the stage for the current legal conflict.

As the case unfolds, it highlights the broader challenges faced by religious institutions grappling with modern societal changes and the implications for affiliated organizations. The Texas Supreme Court’s decision not only affects SMU but also resonates with many other religiously affiliated institutions navigating similar issues amid evolving cultural landscapes.

For more information on the ongoing developments in this case, you can visit The Texas Tribune for in-depth coverage and analysis.

Author