Appeals court sides with Mormon church in lawsuit over use of tithes

The Mormon Church legitimately used tithing funds to finance a commercial shopping mall in downtown Salt Lake City, a federal en banc panel ruled 11-0 on Friday, rejecting fraud claims by a former member.

The opinion by the 9th U.S. Circuit Court of Appeals reversed a three-judge panel and affirmed a Central District trial judge who granted summary judgment to the church. Huntsman v. Corporation of the President of the Church of Jesus Christ of Latter-day Saints, 21-56056 (9th Cir., filed Sept. 28, 2021).

A host of friends of the court lined up behind the church's position, warning that a contrary ruling could open religious organizations to copycat lawsuits and endless litigation.

Instead, the opinion by Circuit Judge Michelle T. Friedland held that "no reasonable juror could conclude that the Church made a 'knowingly false representation of fact'" to the former member who sued over the alleged misuse of his donations. The church has long disclosed that it used tithing funds in part for commercial endeavors, the panel said.

Friedland's opinion was signed by six judges. Five others signed concurrences. The majority held that the church autonomy doctrine had no bearing in the case because the fraud claims did not encroach on matters of church doctrine or policy