Pure Presbyterian Church v. Grace of God Presbyterian ChurchAnnotate this Case
The Supreme Court affirmed the judgment of the trial court entering an order enforcing a merger agreement between two churches, holding that the trial court had subject matter jurisdiction to adjudicate this dispute.
The two churches in this case entered into a merger agreement memorializing a merger between the churches. When one of the churches (Defendant) decided it wished to withdraw from the “proposed” merger, the other church (Plaintiff), instituted this action. The jury returned a special verdict in favor of Plaintiff, finding that the parties had reached a merger agreement and that Plaintiff had performed its obligations under the merger agreement. The trial court entered a final order in accord with the merger agreement and the jury’s verdict. Defendant sought to vacate the trial court’s order, arguing that the trial court lacked subject matter jurisdiction to enter it. The Supreme Court disagreed, holding that the trial court had subject matter jurisdiction either to adjudicate a breach of contract claim or to issue a declaratory judgment on the merger contract, and a pending bankruptcy did not foreclose the trial court’s adjudication of the merger contract.