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Religion & Law

: Religion Clause

Utah High Court Finds Church's Theft of Funds Violates Anti-Racketeering Statute

By Howard M. Friedman

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In Hill v. Estate of Owen A. Allred, (UT Sup. Ct., May 1, 2009), the Utah Supreme Court held that an elaborate scheme by a religious group and some of its followers to steal $1.54 million from a woman who thought the funds were being used to purchase a ranch violates Utah's Pattern of Unlawful Activity Act. The statute, Utah Code Ann. § 76-10-1605, allows an award of double damages and attorneys' fees to plaintiff, Virginia Hill, who was injured by a pattern of unlawful activity. Drawing on federal precedent, the court rejected defendants' claim that conversion of Hill's money involved only a single episode of criminal activity.

The court also reversed the trial court's holding that Hill could not be awarded punitive damages because of "unclean hands." She had failed to produce tax returns showing she had paid taxes on the funds converted by defendants. Since the damages she was awarded were not based on doctrines of equity, the court concluded that "the hygiene of her hands was never at issue." Friday's Salt Lake Tribune reports on the decision.

Full post as published by Religion Clause on May 03, 2009 (boomark / email).

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