Timeline for MBC legal battle with agencies

The legal dispute between the Missouri Baptist Convention (MBC) and five of its agencies was triggered by theological and political positions taken by moderate/liberal Missouri Baptists. The majority of voting messengers to the MBC’s annual convention have affirmed the theologically conservative direction of the convention by electing conservative presidents every year since 1998. By the summer of 2000, moderate and liberal leaders in the state, who had carefully controlled all committee/trustee appointments to convention entities – and the flow of news – realized they were about to lose their majority of seats on the MBC Executive Board (since the president has Nominating Committee appointment power) and ultimately trustee appointments at the five entities.

Once it became inevitable that conservatives would gain control of the Convention, moderate/liberals – many with connections to the Cooperative Baptist Fellowship (CBF) and the Baptist General Convention of Missouri (BGCM) – made plans to seize the five entities by illegally amending the charters to the entities so they – and only they – could name their successors to the trustee boards. As a result, they broke Missouri law because their charters state that only the MBC can elect/approve trustees and approve charter changes. Refusing to submit to binding Christian arbitration, the defiant trustees set in motion a legal battle that has now entered its 51st month.

September 2000 – The Baptist Home trustees amend its charter – without MBC approval – to be self-perpetuating.

October 2000 – Moderates and liberals, fearful of losing a third straight presidential election, try to raise $250,000 to fund a campaign against a conservative candidate for MBC president. Windermere corporation ratified by convention, with MBC right to elect trustees.

January 2001 – Windermere board starts functioning.

March 2001 – Real estate deed transferred from Executive Board to Windermere corporation (WBCC).

July 2001 –WBCC board votes July 30 to amend charter – without MBC approval – to be self-perpetuating. Jim Hill is present as a trustee, but abstains.

August 2001 – Missouri Baptist College board votes to be self-perpetuating, without MBC approval.

October 2001 – Jim Hill resigns as MBC Executive Director on Oct. 4. On Oct. 5 the Missouri Baptist Foundation votes to get a judge’s order secretly from Cole County Circuit Court to amend its charter and then does so – without MBC approval. On Oct. 19 Word & Way trustees amend its charter – without MBC approval. On Oct. 30 messengers to the MBC’s annual meeting in Cape Girardeau vote by more than 3-to-1 margin to escrow $2.1 million earmarked for the five entities, and to “take all steps necessary” to restore the five agencies to former relationship.

November 2001 – Baptist Home lawyers threaten to have MBC-elected trustees to Baptist Home arrested for criminal trespassing if they attend an open meeting of the renegade trustees. Later, lawyers with some of the five agencies threaten to sue the MBC and individual Executive Board members if they do not release the $2.1 million held in escrow. 

April 2002 – The MBC legal task force releases the findings of three legal opinions from prestigious law firms which said the trustees of breakaway entities had broken Missouri corporate law.

May 2002 – Several meetings between MBC leaders and heads of the five entities were attempted in an effort to avoid a law court. MBC leaders agreed to take the controversy before mutually agreeable Christian arbitrators, but the five entities heads refused. Several attempts since at reconciliation have also been rejected by the agency lawyers.

June 2002 – Board members at a called MBC Executive Board meeting voted, 33-9, “to take all legal steps necessary to restore the five agencies to their former legal relationship” with the MBC.

June 2002 – The MBC Executive Board strips Word & Way of its standing as the official newspaper of the convention.

August 2002 – The MBC, represented by the Executive Board and six local churches, file a petition for declaratory judgment in Cole County Circuit Court in Jefferson City, asking the court to rule whether the five entities had broken Missouri law by amending their charters without MBC approval, and whether MBC still had the right to elect trustees.

October 2002 – The five entities file for dismissal of the MBC lawsuit, claiming that the churches and the Executive Board lacked standing to represent the Convention.

November 2002 – Judge Thomas Brown III rules against the entities’ motions to dismiss the case, allowing the churches and the Executive Board to continue to represent the Convention. A motion at the MBC’s annual meeting to drop legal action against the five entities was defeated by a more than 5-1 margin.

December 2002 – Defendants counter-sue MBC, alleging breach of contract, because, among other things, the nominating committee followed new “guidelines” in 2001 and did not nominate some trustees requested by the five agency presidents.

April 2003 – MBC-elected trustees for the five agencies begin meeting, so that a smooth transition is possible when the five agencies are returned to MBC accountability.

August 2003 – Attorneys begin taking depositions. Allegiant Bank loans $18.75 million to Windermere for Wilderness Creek project.

October 2003 – Messengers approve an Executive Board recommendation to formally remove the rebel trustees at the five agencies. They also overwhelmingly approve the establishment of a $1 million line of credit to fund the MBC’s continuing legal costs.

November 2003 – Judge Brown reverses his November 2002 decision and rules the convention is not a member of the Missouri Baptist College corporation. Church Mutual files a lawsuit against MBC to avoid paying legal fees on policies to MBC.

March 2004 – Judge Brown reverses his November 2002 decision and rules that the Ex. Board and churches lack standing to represent MBC, and dismisses petition.

April 2004 – MBC appeals Brown’s dismissal to the Missouri Court of Appeals, Western District, in Kansas City.

August 2004 – Windermere defaults on debt, now $21 million, to National City Bank, the successor to Allegiant Bank.

May 31, 2005 – Missouri appeals court issues a unanimous 3-0 decision in favor of the MBC, reversing Judge Brown’s March 2004 dismissal, and ruling that the Executive Board has standing to represent MBC, along with messengers.

August 2005 – A Missouri appeals court rejects a request by agency lawyers to rehear and overturn the court’s May 31, 2005 ruling in favor of the MBC.

August 2005 – Agency lawyers file motion to transfer (appeal) to the Missouri Supreme Court, which denies the appeal, returning the case to Cole County. Windermere contracts to sell 941 acres to Bill Jester’s businesses. Mr. Jester is unable to obtain financing, so this contract did not close.

October 2005 – Former MBC Executive Director Jim Hill is deposed, admitting that, even before Baptist Home broke away, he had obtained a legal opinion stating that MBC agencies could not lawfully change charters to be self-perpetuating, unless MBC approved.

Nov. 12, 2005 – Windermere breakaway board (WBCC) deeds 941 acres to National City Bank. At the same time, WBCC re-finances with 2 California banks, who take a mortgage on the remaining 350 acres. The re-finance plan was arranged by California Plan for Church Finance, an agency of the California Baptist Foundation, which took a fee of $1.2 million to set up a bond program to try to sell bonds to private investors during 2006. The mortgage notes come due on Nov 15, 2006.

Dec. 1, 2005 – Word and Way runs a story quoting WBCC chairman Arthur Mallory, after a Nov. 17 board meeting. The story says: “At the meeting, a trustee asked if selling some of Windermere’s property was an active consideration. Mallory responded that property would not be sold because to do so would disrupt development plans.” Dec. 7, 2005, Word and Way ran a clarifying story, again quoting Mallory, that began: “Windermere Baptist Conference Center will sell some property as part of its long-range strategic plan.”

February 2006 – National City Bank deeds the 941 acres to the Jester Companies.

June 2006 – MBC wins injunction against WBCC prohibiting further transfer of land, as well as further debt or timber harvesting. However, the injunction applies only to WBCC and the 350 acres it retains, not to Jester and the 941 acres. The Jester companies collaborate with WBCC on joint development plans to include lake homes, condos, and a retirement home.

August 2006 – five agencies file pleadings claiming MBC lacks standing and that only Attorney General can bring lawsuits about corporate charters. 

September 2006 – MBC files motion to strike this defense. Judge Brown declines to strike, but postpones ruling on issue until motions for summary judgment are filed.

October 2006 – MBC files motions for partial summary judgment, asking court to declare MBC standing once for all. Hearing expected in November. Meanwhile aggressive development work by Jester Companies continues, with plans for lots along the shoreline in Windermere Cove.