Falwell’s church wins right to incorporate

LYNCHBURG, Va. — In response to a lawsuit from Jerry Falwell, a federal court in Virginia has ruled that the state’s 18th century law barring churches from incorporation is unconstitutional.

“Unlike other groups in Virginia, members of ‘a church or religious denomination’ are unable to incorporate the organization to which they belong,” wrote U.S. District Judge Norman K. Moon in a decision issued April 15. “They are therefore denied the benefits of incorporation because of their religious status.”

Falwell and the trustees of his Thomas Road Baptist Church in Lynchburg argued that the law denied their constitutional right to free exercise of religion. With incorporation, the church would gain limited liability, the opportunity to sue and be sued as an organization and the power to enter contracts, the court said.

Ken Schrad, spokesman for the State Corporation Commission, told Religion News Service April 17 that the commission has decided not to appeal Moon’s ruling. He said Falwell’s church would be granted a charter of incorporation “so long as the filing meets all the requirements.”