Texas Supreme Court Hears Argument Over Whether Church May Challenge SMU’s 2019 Charter Amendments

The Supreme Court of Texas heard argument in Southern Methodist University v. South Central Jurisdictional Conference of the United Methodist Church (No. 23-0703) on whether the conference has statutory authority under the Texas Business Organizations Code to challenge amendments SMU filed with the Texas secretary of state in 2019.

The question presented at argument Tuesday was chiefly whether the conference may proceed under section 22.002 of the Texas Business Organizations Code (often litigated as ultra vires claims) or whether ecclesiastical-abstention and church-autonomy principles require dismissal. Petitioners’ counsel, Miss Ho, argued that SMU is an independent, nonmember nonprofit and that section 22.002 limits the class of parties who may bring these challenges, meaning the conference lacks statutory authorization to sue. Respondent counsel, Sonny McIntyre, said the conference is a controlling or founding entity with enforceable rights under the governing documents and related provisions of chapter 22, and that dismissal would leave the conference without a remedy.

Why it matters: The dispute reaches beyond these parties. A ruling for SMU could leave nonprofit corporations able to amend governing documents without deference to founding religious bodies; a ruling for the conference could…