High-profile tithing case set to be reheard in June
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SALT LAKE CITY (ABC4) — The high-profile tithing case brought against The Church of Jesus Christ of Latter-day Saints by former member James Huntsman is set to be reheard by several judges of a federal appellate court this summer.
The latest twist in the case came Friday, when the 9th Circuit Court of Appeals granted an en banc rehearing of the case, meaning it will be heard by Chief Judge Mary Murguia and 10 other judges.
This is set to take place on June 24, when the judges will hear oral arguments in the case in Seattle. Attorneys for the LDS church called the development a “significant win” for the Utah-based faith.
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“We are pleased with the 9th Circuit’s decision to rehear this important case, and we look forward to arguing on behalf of our client before the en banc panel,” said Rick Richmond, a lead trial counsel for the church, in a statement.
The rehearing order came as the court opted to vacate a split 2-1 ruling in August where a three-judge panel ruled to overturn a lower court’s decision to dismiss the case. As it stands, the case is again dismissed, but that could change following the rehearing in June.
Huntsman, the brother of former Utah Gov. Jon Huntsman Jr., sued the church in March 2021, claiming that millions of his tithing dollars were used by the church for noncharitable matters. Similar lawsuits from others have since followed.
Huntsman’s argument centers on tithing, a Christian tradition where members give one-tenth of their annual income to the church. Huntsman accused the church of fraud and deception. He’s demanding the church repay the millions he donated over the course of two decades.
Specifically, Huntsman claimed the church used his donations to build City Creek, a $1.4 billion shopping mall across the street from the church’s downtown Salt Lake City headquarters.
Following the three-judge panel decision last summer to revive the case, the church’s lawyers responded with a petition calling for the rehearing en banc. Part of the church’s argument was that Huntsman’s suit could open all churches to similar litigation from former members.
The church’s attorneys described the lawsuit as a “profound threat to religious liberty,” arguing that the church has historically needed to create commercial enterprises due to widespread persecution and forced migrations, which eventually led the church to settle in Utah.
Since 2003, the church has maintained that it does not use tithing dollars to fund projects like the City Creek mall — rather the church taps into interest from its investments to fund such ventures.
Huntsman’s lawsuit came in the aftermath of a whistleblower complaint filed by David Nielsen, the former senior portfolio manager at Ensign Peak Advisors, which is the church’s nonprofit investment division. Nielsen accused the church of using shell companies to hide the full value of its assets.
Last year, the U.S. Securities and Exchange Commission reached a settlement in that case, fining the church $1 million and Ensign Peak Advisors $4 million. The church’s investment arm was not forced to disclose its investments.