Central Coast Baptist Ass'n v. First Baptist Church of Las Lomas

Central Coast Baptist Association (Central Coast) is a voluntary association of approximately 100 Southern Baptist churches in California’s central coast counties. First Baptist Church of Las Lomas (First Baptist) is a Southern Baptist church in Monterey County that is associated with Central Coast. Central Coast brought this action against First Baptist and against New Life Community Church of Prunedale (New Life) and New Life’s pastor, Hank Holley. Central Coast alleged that an attempted takeover of First Baptist by New Life, a nondenominational church, triggered a reversionary clause in article VII, section 3, of First Baptist’s constitution, which provided that the assets of First Baptist would pass to Central Coast either in the event of a “dissolution or winding up of the organization” or should First Baptist “cease to be a Southern Baptist Church.”

Following a bench trial, the trial court found in favor of Central Coast. The court found that First Baptist had “ceased to function as a Southern Baptist Church,” and that it had “de facto dissolved.” Based on these findings, the court ordered enforcement of the reversionary clause in First Baptist’s constitution, and…