Month: July 2017

On June 5, 2017, the Supreme Court decided Advocate Health Care Network v. Stapleton, which is consolidated with Saint Peter’s Healthcare System v. Kaplan, and Dignity Health v. Rollins. The Employee Retirement Income Security Act of 1974 (ERISA) requires that employee retirement plans contain certain safeguards, but exempts “church plan[s]” from these requirements. Under 29 U.S.C. 1002(33)(A), the term “church plan” means “a plan established and maintained… by a church or by a convention or association of churches which is exempt from tax….” After a controversy involving an Internal Revenue Service determination that the church plan exemption did not encompass pension plans established and maintained by two orders of Catholic sisters for the employees of their hospitals, Congress amended the statute to add subsection (C), which provides: “A plan established and maintained for its employees (or their beneficiaries) by a church or by a convention or association of churches includes a plan maintained by an organization, whether a civil law corporation or otherwise, the principal purpose or function of which is the administration or funding of a plan or program for the provision of retirement benefits or welfare benefits, or both, for the employees of a church or a convention or association of churches, if such organization is controlled by or associated with a church or a convention or association of churches.” -- Plaintiffs in this case are a group of employees who work for church-affiliated non-profits. Plaintiffs sued the non-profits, alleging that their retirement plans are subject to ERISA and that by failing to adhere to ERISA’s requirements the non-profits have breached their respective fiduciary duties. Defendants moved for summary judgment, but the district court denied the motions because it determined that a plan established and maintained by a church-affiliated organization was not a church plan within the meaning of the statutory language. The U.S. Court of Appeals for the Seventh Circuit affirmed. -- By a vote of 8-0, the Court reversed the judgment of the Seventh Circuit. In an opinion by Justice Kagan, the Court held that under ERISA, a defined-benefit pension plan maintained by a principal-purpose organization -- one controlled by or associated with a church for the administration or funding of a plan for the church's employees -- qualifies as a "church plan," regardless of who established it. All members joined her opinion except for Justice Gorsuch, who took no part in the consideration or decision of the case. Justice Sotomayor filed a concurring opinion. -- To discuss the case, we have Eric Baxter who is Senior Counsel at The Becket Fund for Religious Liberty.

For today's show, we dive deeper into the Supreme Court's recent decision in Trinity Lutheran v. Comer with guest lawyer Andrew Seidel from the Freedom From Religion Foundation. First, however, we answer a question from Patron Christopher Arguin regarding cross-examination that was inspired by TTTBE #30. In the main segment, Andrew and Andrew continue to discuss church-state separation and the First Amendment. Next, our friend Seth Barrett Tillman provides us with an update on the CREW v. Trump lawsuit regarding emoluments. Finally, we end with the answer to Thomas Take the Bar Exam Question #31 regarding the Statute of Frauds.  Listen and find out if Thomas's improbable one-question winning streak will continue -- and don't forget to play along by following our Twitter feed (@Openargs) and/or our Facebook Page and quoting the Tweet or Facebook Post that announces this episode along with your guess and reason(s)! Recent Appearances None!  But this is your last chance to join the guys at the Inciting Incident 100th Episode Live Spectacular in Carlisle, PA on July 14, 2017!  Get your tickets now! Show Notes & Links

1. We first spoke with Andrew Seidel regarding Trinity Lutheran during Episode 82.
2. Here is a link to the Trinity Lutheran v. Comer decision.
3. We first discussed Trinity Lutheran during our three-part "You Be The Supreme Court" series; part 1 (Episode 14) is available here, part 2 is available here, and part 3 is available here.
4. This is the letter that the Missouri Attorney General sent indicating that, post-election, Missouri would change its policy.
5. Finally, please check out Andrew Seidel's great work at the Freedom From Religion Foundation.

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