$52,000,000 Judgment

[Gregory Matthews]

A lawsuit related to the Miracle Meadows school has been settled for some $52,000,000!  Miracle Meadows was an independent school, not operated by the SDA denomination.  However denominational officials sat on the Board the governed that school and local Conference publicized it in Conference publications.  

https://atoday.org/record-52-million-settlement-secured-in-miracle-meadows-abuse-lawsuit/

 

 

 

[Gregory Matthews]

Some 29 former students at the school will receive the proceeds from the $51,900,000 settlement after legal expenses are deducted.

The settlement comes from some 14 defendants.

 

 

[Stan]

This is very scary.  It means that no conference, or Union, or division, or GC employee  should sit on or even promote independent ministries.

[Gregory Matthews]

A basic concept in business law is that  those who sit on a Board of Directors are responsible for that actions of that Board.

I am reminded of a Conference President, whom I was once knew very well.  He resigned from the Board of an independent organization, when he become aware of some of its financial irregularities.

Personally I believe that the Odenthal case is instructive.  In that case the State Supreme Court ruled that the local Conference could be tried for a failure to supervise one of its pastors.  Yes, this case differs from the present case.  But, it illustrates that financial issues may be attached to to situations where we do not expect them to be present.

On another issue, in the present COVID-19 case, the Conference may have policy.  But, if  a Conference fails to enforce those policies, it may be subject to liability.