THE PRESBYTERY OF WESTERN NORTH CAROLINA STATED CLERK'S REPORT James Aydelotte, Stated Clerk October 24-25, 2008

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1 THE PRESBYTERY OF WESTERN NORTH CAROLINA STATED CLERK'S REPORT James Aydelotte, Stated Clerk October 24-25, 2008 The Stated Clerk presents the following: RECOMMENDATIONS: B-1 OM 1. THAT William Kantonen, James Aydelotte, and Robbin Buchanan be requested to prepare the minutes of this Presbytery meeting for approval at the January 31, 2009 Presbytery meeting. OM 2. THAT the minutes of the July 29, 2008 Stated Meeting of Presbytery be approved as submitted. (The full set of these minutes, including appendices, is available for review at the Stated Clerk's table.) OM 3. THAT the minutes of the ordination of the following be placed into the record of Presbytery: Elizabeth Michaels OM 4. THAT the minutes of the ordination/installation of the following be placed into the record of Presbytery: Michael A. Sears Calvin Lewers Tee S. Gatewood, III OM 5. THAT the minutes of the installation of the following be placed into the record of Presbytery: Randy Hardy 6. THAT the summary report of the Administrative Commission for the Hephzibah Presbyterian Church, Bessemer City become a part of the permanent record of the Presbytery of Western North Carolina. (Stated Clerk Attachment 1) 7. THAT the following be recognized as Corresponding Members: Rev. George Ramsey, Trinity Presbytery Simon Ntumba Tshitenge, New Castle Presbytery & Kananga Presbytery in the Democratic Republic of Congo Etienna Bote-Tshiek, Presbytery of Eastern Virginia & Presbyterian Community of Kinshasa in the Domocratic Republic of Congo

2 B-2 FOR INFORMATION: 8. THAT all those staying overnight at the seventy-eighth stated meeting of the Presbytery of Western North Carolina at Lake Junaluska be reminded to check-in at the Bethea Welcome Center, at the main entrance, for your room key. 9. THAT the seventy-ninth stated meeting of the Presbytery of Western North Carolina will be held on Saturday, January 31, 2009 at the First Presbyterian Church in Asheville, North Carolina. 10. THAT the Christian Education Committee will sponsor a One-Day Retreat for Christian Educators, Telling God s Story, on Saturday, January 17, 2009, at Convocation Hall at the Montreat Conference Center. 11. THAT a Training Event for Adults and Youth, "Let's Celebrate", will be held on Saturday, August 22, 2009, at the First Presbyterian Church, Morganton. The emphasis of this event will be: Evangelism, Revitalization and Transformation. th 12. THAT the Shelby Presbyterian Church celebrated its 150 Anniversary in September th 13. THAT the First Presbyterian Church, Franklin celebrated its 175 Anniversary in September THAT the Westminster Presbyterian Church in Asheville will celebrate its 50 th Anniversary in October THAT the following date has been established for Committee Chair Training for those serving as chair of a Presbytery Committee for 2009: Thursday, January 22, 2009 ~ 10:00 a.m. - 2:00 p.m. First Presbyterian Church, Morganton 16. THAT the following dates have been established for Clerk of Session Training and Reviewing of Church Records: Saturday, March 21, 2009 Saturday, April Saturday, June 6, THAT copies of the Proposed Amendments to the Constitution of the Presbyterian th Church (USA) and Proposed Ecumenical Statements approved by the 218 General Assembly (2008) will be distributed at the registration table at the October Presbytery Meeting and can also be downloaded from the PCUSA website:

3 HEPHZIBAH October 24-25, 2008 STATED CLERK ATTACHMENT 1 How your Presbytery was forced to become involved in this matter is detailed in the attached report: The Truth about Hephzibah. (Exhibit A) When a part of the Hephzibah Session, without notifying their own Congregation, much less the Presbytery, attempted to divert all the Church s assets to a quickly contrived corporation, the Presbytery was compelled to defend the Constitution of our denomination. The purpose of the trust clause - - All property held by or for a particular church [i.e. congregation]... is held in trust nevertheless for use and benefit of the Presbyterian Church (USA) (BO: G ) - - is to ensure that the resources built up over many years by faithful church members (the majority of whom may be deceased) cannot be suddenly carried off by currently schismatic persons, but will be preserved for the mission work of your Presbytery. Hiring a competent attorney, the Presbytery won a summary judgement in the Gaston County Superior Court. But, the dissident group insisted on taking this matter to the North Carolina Court of Appeals, which dismissed the suit, awarding the property to the Presbytery. Unanticipated legal expenses over several years were $49, Being now responsible for the facilities, Presbytery had, of course, to maintain them. There were inevitable repairs to be made, especially to the roof, which had apparently been neglected, and for lawn care. These eventually came to $27, plus $24, for utilities (especially heating and electricity) and $6, for insurance. Then, both the church and the manse had to be made ready for sale. Since they had been jointly using a well, separate water systems had to be installed. As the manse had been leased for several years and had not been taken care of, new flooring and other improvements had to be installed. To have a clear title to two separate properties, surveying had to be done, as well as a title search. A realtor had to be hired and his expenses met - - and tribute must be paid to Elder Jim Jones of the First Presbyterian Church in Gastonia for his outstanding work as Presbytery s realtor, often going far beyond normal service. These expenses totaled $20, For well over a year, Presbytery sent Supply Preachers to hold services each Sunday at the Hephzibah Church, resulting in honoria of $25, The minimal expenses of the administrative commission appointed by Presbytery to oversee all these matters were $1, Those appointed to this commission (and recently dismissed with the thanks of Presbytery) were: Rev. Dr. James Bernhardt Mr. Ken Bryant Mrs. Helen Harris Rev. Dr. Billy Lowe Mr. Jimmy Ervin Mr. John Lafferty Rev. Nancy Mugford Mr. Jim Jones The Hephzibah manse was separately sold for $82,500.00, and the church van (after some repairs) for $ Claims to the insurance company for repair to the air conditioning unit, after come negotiation, yielded $4, While the manse was leased at first, Presbytery received $12, in rent (though the tenants left the manse in poor condition).

4 The sale of the church and grounds took a long while, but finally a contract was signed with the First Presbytery of the Associate Reformed Presbyterian Church for $100,000.00, payable over five years, This was particularly pleasing, since a Presbyterian congregation would be once again worshiping at Hephzibah, and they promised to take care of the attached graveyard. As the attached sheet show, total expenses were $154, (Exhibit B) These were largely offset by receipts to date of $147, Since that only includes the first annual payment of $20, for the church, Presbytery can look forward to future payments of $80,000.00, which the Coordinating Council has designated for New Church Development in your Presbytery. All this could have been avoided, of course, if the dissident elders had not violated the Constitution of the PCUSA. But Presbytery trusts that the final result is pleasing to the Head of the one Church of Jesus Christ. To God Alone be the Glory!

5 The Truth About Hephzibah Exhibit A (Page 1 of 3) [This account has been compiled by several who were on the Commission or who supported its work. Though every effort has been made to ensure factual accuracy, this is not a legally comprehensive document.] The Hephzibah Administrative Commission was first convened in Lincolnton, NC on August 23, Presbytery Executive Bill Taber led an orientation session on the situation of the Hephzibah Church (hereafter referred to as HPC). We were told that the church was a small church that, like many, had struggled to call a pastor. Presbytery staff had met with the leadership, after their previous part-time stated supply pastor had completed his ministry, to discuss their options, give the names of potential pastors, and encourage creativity in seeking pastoral leadership for their next pastor. But, following a period of Sunday supplies, the church had been approached by an individual, who identified himself as a Presbyterian minister, who offered to fill their pulpit on a consistent basis. The Session was enthusiastic for such an arrangement and agreed to terms with this person. After several weeks, or months, of this arrangement, and the congregation content with the individual, the leadership inquired of the Committee on Ministry whether this person could become permanent in some form. The Executive Presbyter sought to verify the credentials of the minister, who had not to that date sought permission to labor within the bounds of the Presbytery. It was discovered that the individual had been an ordained PCUSA minister, but had been charged with unprofessional behavior in a presbytery in another state. The minister either renounced the jurisdiction of the church or refused to face the charges, so his ordination was set aside. When this news was reported to the HPC Session, there was anger directed, not at the minister who had been secretive toward them, but to Presbytery, whose diligence had uncovered the duplicity. The leaders then indicated their intention to leave the denomination and stay with the non-ordained person as their minister. Thus, the Commission was appointed to ascertain the source of the disagreement and seek to effect a reconciliation. As an outcome of this first meeting, it was decided to meet with the HPC Session and also to request a congregational meeting to discover all the concerns of the church s members. The initial meeting with the Session on September 6, 2001 was cordial. The elders expressed frustration that the church had not been able to find a pastor. They felt that some effort was being made to limit them in their search for pastoral leadership. They also expressed anger at their perception of General Assembly statements on two issues abortion and the ordination of homosexuals. The Commission was receptive to their concerns and encouraged the elders to find common ground with other churches in the Presbytery who shared their views, and encouragement was given for them to be in contact with Presbyterians Pro-life and other groups within the denomination with whom they might find fellowship. The Wee Kirk Conference was suggested as a place for them to discover some ideas for the life of HPC. The meeting ended with prayer and handshakes, and conversation was cordial as the elders showed the Commission around the ample facilities. Commission members felt that there was reason to believe a positive direction could be found. Whether it was prior to the later congregational meeting on September 16, 2001, or after, an accidental discovery drained the hopeful enthusiasm from the Commission. Attorney John Lafferty discovered in conversation with another attorney that the property of the HPC had been transferred into the name of a new corporation, the Hephzibah Evangelical Presbyterian Church. What is more, the Commission discovered that the property transfer had occurred prior to the Commission s first meeting with the HPC Session on September 6. In further conversation in later weeks with members who did not support the transfer of the property, it was discovered that no congregational meeting was called for such a purpose. The Commission

6 Exhibit A (Page 2 of 3) was told by church members, who felt that something was out of order in the process, that slips of paper had been given to members asking them their feelings about the transfer, but no meeting with opportunity for discussion or dissent was called. In conversation with the Stated Clerk of the area Presbytery of the Evangelical Presbyterian Church, it was discovered that no request to be received by that denomination had ever been made by the HPC Session. In any case, the congregational meeting called by the Commission to hear the concerns of the congregation on September 16 was overrun with disorder. On one side sat a group of 30 or so members and on the other, a group of perhaps 6 or 8. When members were asked to speak of their hopes for the future of the congregation, the floor was taken by one member of Session who read aloud selected excerpts of General Assembly documents available on the internet and who also angrily accused the Commission of failing to support the elder s personal interpretation of those documents. Failing to bring order to the meeting despite numerous attempts to do so, the Commission called for adjournment. In the following weeks, Commission members were contacted by some HPC members, at least one of whom was an ordained elder, who felt that the Session was taking actions they were not permitted to take. After the revelation of the unconstitutional property transfer, members of the Commission began to understand why the members who dissented from the Session action did so. Once the Commission was fully apprised of the property transfer situation, it was clear that the original goal of the Commission, to effect reconciliation, was likely not going to be an achievable primary goal. Several actions of the Commission occurred in short order. One, which in retrospect was perhaps imprudent, was the decision to change the locks on the church doors. It is hoped that presbyters can understand the Commission s motivation when faced with the actions of the HPC Session. The Commission felt that such action would make it clear that the HPC action was illegal before the law, disorderly before the covenant of the church as delineated in the Book of Order, and a breach of fellowship among the members of HPC, whose voice in membership was not honored. Further, because the church van had been removed from the church lot by someone in the church, there was question and concern about valuable property in the building that could be removed, given that the Session had already taken action to transfer property. The angry response of some members indicates that the Commission s action only inflamed the situation. However, the Session s action to transfer the property was finally set aside by North Carolina state courts, and the order of the PCUSA was upheld. Second, the Commission appointed a Stated Supply to fill the pulpit of the continuing HPC congregation, and though the relationship was strained, an agreement was made to share the facility with the schismatic part of the church. Despite the allegations that there were no continuing members of the church living in the area, there were some members who attended the worship led by the Stated Supply, and who welcomed the care that was offered by the Presbytery. The Stated Supply situation continued for several months. Third, efforts were made to continue dialogue with the leadership group of the now-called Hephzibah Evangelical Presbyterian Church to no avail. The Commission indicated to the group the illegality of their actions in hope the group would relent and somehow reverse their actions. The Commission, guided by the Executive Presbyter/Stated Clerk, and with the advice of attorneys within the Presbytery, began the legal processes to fend off the action of the leadership group. At great expense of nearly $40,000, these efforts were ultimately successful as the Gaston County Superior Court issued a summary judgment for the Presbytery, and, in an appeal by the HEPC, the NC Court of Appeals decided in favor of the Presbytery.

7 Exhibit A (Page 3 of 3) It is hard to know what else the Commission could have done, faced with a dishonest minister, a duplicitous rump Session that willingly deceived both the Presbytery and its own congregation, and a highly charged atmosphere, where any calm, reasoned discussion was impossible. The choice before the Commission was either to stand up for the order of the church and the justice required in the situation, or fold and give in entirely to the schismatic group. Many voices in the church wish to make an argument that the Hephzibah case is an example of Presbytery authority run amok. On the contrary, this was an unfortunate example of a Session taking unto itself authority not granted in the agreed upon order of our church. And it is an example of the great difficulties caused by churches that seek to act outside of the covenants under which presbyteries, churches, elders and ministers have promised to abide. Those who served on the Commission did not have anything to gain or lose in serving but served out of love for the church, seeking to maintain order in the church for the sake of the whole church, as well as for the people of the Hephzibah Church. It was deeply disappointing for everyone on the Commission to not be able to find a way to be reconciled, and to have to take action in civil court to enforce the covenants that ought to be obeyed as a matter of conscience before Christ. In summary: The trustees of the church fraudulently attempted to transfer property titles and cash to a separate, non-profit organization, and made themselves trustees of the second non-profit organization. Such an act is not legal in the state of North Carolina. Also, this second non-profit organization was chartered without notice to the Presbytery or to the congregation itself. No required notice was given. This is against the law of North Carolina. The trustees of the corporation could have been brought to civil court for their egregious breach of trust, but the Presbytery Commission did not desire to punish. The Commission simply worked to preserve and protect the real property and assets entrusted to the denomination. This was done without vote by the members of the original non-profit organization and without authorization to make such a transfer. The Presbytery of WNC, attempting to protect its right of access and property, had the locks changed. Keys were provided to a member of the Hephzibah Evangelical congregation. They were not locked out. Additionally, the church remained open and supplied for a period of years at the expense of Presbytery. The Presbytery attempted to mediate the differences and were part of legal mediation proceedings on two occasions. Each time, the Presbytery Commission offered to allow the Hephzibah Evangelical Church to purchase the property at considerably less than the appraised value, but that was declined.

8 Exhibit B Hephzibah Commission Final Report Name Total EXPENSES: Legal Expenses 49, Real Estate Expenses 20, Maintenance/Repair Costs 27, Utilities 24, Insurance 6, Supply Preaching 25, Commission Expense 1, TOTAL EXPENSES 154, RECEIPTS: Legal Exp Assistance (PC(USA)) (27,374.54) Sale of Hephzibah Manse (82,500.00) Sale of Hephzibah Church* (20,000.00) Sale of Hephzibah Van (700.00) Insurance Claim (A/C) (4,360.00) Rent and Offerings (12,225.54) TOTAL RECEIPTS (147,160.08) Net Account Balance 7, * Yearly installments of $20,000 each to be received over a 5 year period - to be designated to support New Church Development.