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Fundamentalist Church of Jesus Christ of Latter-Day Saints v. Wisan

Citations: 773 F. Supp. 2d 1217; 2011 U.S. Dist. LEXIS 18398; 2011 WL 754286Docket: Case No. 2:08-cv-772

Court: District Court, D. Utah; February 23, 2011; Federal District Court

Narrative Opinion Summary

This case involves a dispute over the management of the United Effort Plan Trust, established by the Fundamentalist Church of Jesus Christ of Latter-Day Saints (FLDS) to support its religious practices. The plaintiffs, members of the FLDS, challenge the state court's intervention in reforming the Trust, arguing it violates their First Amendment rights under the Establishment and Free Exercise Clauses. The state court, citing breaches of fiduciary duty by the trustees including Warren Jeffs, reformed the Trust to prevent its misuse, appointing a Special Fiduciary to manage its assets. Plaintiffs contend this action improperly secularized a fundamentally religious Trust, infringing upon their religious practices. The federal court granted a preliminary injunction to halt the secular management of the Trust, emphasizing the constitutional violations. Additionally, the court addressed procedural defenses raised by the defendants, such as laches and res judicata, ultimately allowing the plaintiffs' claims to proceed. The court's decision underscores the delicate balance between state intervention and religious freedom, affirming that excessive government entanglement with religious entities is unconstitutional.

Legal Issues Addressed

Breach of Trust and Fiduciary Duty

Application: The court recognizes the trustees' failure to defend the Trust and comply with court orders, leading to their suspension and reformation of the Trust by state authorities.

Reasoning: Suspended trustees of the Trust violated the Utah Code by failing to defend the Trust, exposing it to default judgments that could allow creditors to seize its assets.

Establishment Clause of the First Amendment

Application: The court finds that the state's intervention in the reform of the United Effort Plan Trust violates the Establishment Clause by causing excessive government entanglement with religion.

Reasoning: The states' actions in this case violate the Establishment Clause, with the state court unlawfully intervening in the reform of the United Effort Plan Trust, which is fundamentally a religious document central to the FLDS church.

Free Exercise Clause of the First Amendment

Application: The plaintiffs successfully argue that the state's actions interfere with their religious practice by secularizing the management of the Trust, thus infringing upon their Free Exercise rights.

Reasoning: The state's actions are viewed as a violation of the plaintiffs' Free Exercise rights, as they disrupt the religious practice of property sharing under religious leadership, replacing it with a secular framework.

Laches and Res Judicata

Application: The court concludes that the Utah Supreme Court's application of laches does not constitute a judgment on the merits for res judicata purposes, allowing the plaintiffs' federal claims to proceed.

Reasoning: The Utah Supreme Court's finding of laches does not constitute a judgment on the merits for res judicata purposes, allowing for further action in the case.

Neutral Principles of Law

Application: The court indicates that neutral principles can be used in resolving church property disputes, but the state's actions in reforming the Trust did not adhere to these principles, leading to improper entanglement with religion.

Reasoning: Neutral principles of law can be applied by courts in church property disputes without violating the Establishment Clause, provided these principles are general and do not require interpretation of ecclesiastical matters.