In a significant legal development, the Ninth Circuit Court of Appeals has ruled to dismiss a lawsuit filed by James Huntsman, brother of former Utah Governor Jon Huntsman Jr., against the Church of Jesus Christ of Latter-day Saints (LDS). Huntsman had accused the church of using tithing donations for non-charitable activities, including commercial ventures, and sought reimbursement for millions of dollars he had donated over a period of two decades.
Tithing, a practice where members contribute one-tenth of their annual income to the church, became central to Huntsman’s claims. He argued that the church misused these funds, specifically for the development of the City Creek Center in Salt Lake City and to bail out the church-owned Beneficial Life Insurance Company. Huntsman filed his lawsuit in Los Angeles in 2021, asserting that the church had violated California’s fraud laws by misrepresenting the sources of funding for these projects.
In response to the dismissal, a representative of the LDS Church reiterated the institution’s stance, emphasizing that tithing is considered sacred and dedicated to advancing its global mission. The church also defended its financial practices, pointing out that funds used for the City Creek development came from earnings on invested reserve funds, not directly from tithing donations.
The legal battle had seen multiple twists. While a lower court initially dismissed the case in 2021, a U.S. District Court later reinstated it. However, the Ninth Circuit’s recent ruling firmly rejected Huntsman’s claims. The appeals court stated that there was no evidence that the church had misrepresented the funding sources for the City Creek project, and Huntsman failed to prove that the church had lied about its financial practices.
The court also underscored the church’s constitutional right to operate freely without interference in its religious practices. Huntsman’s claims were seen as a potential infringement on this principle, as they would involve judicial review of religious beliefs and practices, which the court found to be a violation of the First Amendment’s protection of religious autonomy.
The court further explained that the LDS Church’s use of “reserves,” which includes tithing funds, was publicly explained by church leaders. Former church president Gordon B. Hinckley had discussed the importance of saving a portion of the church’s annual income for future economic challenges, a practice that was well-documented in court records.
In support of its position, the church presented declarations from Ensign Peak Advisors, the entity responsible for managing the church’s reserve funds. These records confirmed that the City Creek project was primarily funded by earnings from these invested reserves. The church also provided evidence refuting Huntsman’s claim regarding the $600 million allegedly used to support Beneficial Life, arguing that Huntsman had failed to present any specific evidence to substantiate his allegations.
The court’s ruling highlights the ongoing debate over the intersection of religious practices and legal accountability, with the judges finding that the case raised significant concerns about religious freedom. As such, they concluded that Huntsman’s lawsuit, which sought to treat tithing as an ambiguous financial transaction subject to legal scrutiny, represented an infringement on the church’s autonomy.
In sum, the federal appeals court has sided with the LDS Church, affirming its position that the funds for both City Creek and Beneficial Life were not misappropriated, and that the case violated constitutional protections for religious entities.
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