Editor’s Note: A lawsuit only portrays one side of a story.
SALT LAKE CITY (ABC4) — Plaintiffs who are suing the Church of Jesus Christ of Latter-day Saints over alleged tithing misuse and misrepresentation of church history indicated that they intend to file an appeal to the US Supreme Court.
The lawsuit was dismissed by the District of Utah Court, and attorneys for the plaintiffs filed an appeal with the Tenth Circuit Court of Appeals. The Tenth Circuit Court refused to hear the case in August, and the plaintiffs filed a petition for a rehearing. The court denied that appeal, so with that, the District of Utah Court decision stands.
However, the attorney for the plaintiffs Kay Burningham previously indicated that they intend to petition the United States Supreme Court to hear the case. The Supreme Court only hears 1% of those cases.
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This lawsuit dates back to a class action lawsuit filed by Laura Gaddy in 2019, which was later dismissed. In 2020, Gaddy filed another complaint, this time as a civil racketeer influenced and corrupt organizations (RICO) claim. That claim was partially dismissed and partially granted, on the issue of the church potentially misrepresenting what it uses tithing for.
In 2021, Gaddy, Leanne Harris, and Lyle Small filed another civil RICO claim against the Church of Jesus Christ of Latter-day Saints, largely making the same claims as Gaddy’s previous suits.
First, they alleged that the church misrepresented its own history by the way it teaches about the First Vision, how Joseph Smith translated the Book of Mormon, locations of events in the Book of Mormon, and Joseph Smith’s personal history. That first claim was dismissed on the basis of church autonomy.
Second, they alleged that the church committed fraud by misrepresenting how it would use tithing payments. That claim was also dismissed because the court determined that the plaintiffs failed to prove that the church committed “a pattern of predicate acts,” which is a requirement for a RICO claim.
Other tithing lawsuits
This is one of four lawsuits filed in recent years against the Church of Jesus Christ of Latter-day Saints over tithing. These lawsuits were filed after David Nielson, a former senior portfolio manager with the Church’s investment arm, Ensign Peak Advisors, acted as a whistleblower and claimed that the church misused billions of dollars in tithesincluding to end the City Creek Center mall in downtown Salt Lake City.
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In 2019, James Huntsman, brother of former Utah Governor Jon Huntsman Jr., sued the Churchrequesting the return of the $5 million he tithed while he was a member, claiming that the church used tithing funds for non-charitable matters.
In February 2023, the church agreed to pay $5 million to the US treasury for using shell companies to obscure the size of its investment portfolioafter the SEC raised concerns about the church’s investment reporting.
In November 2023, a group of current and former members of the church filed a lawsuit against the church and Ensign Peak Advisors. They alleged that they donated a total of about $350,000 to the church over the years and that they were led to believe that their donations would only be used for charitable purposes. In January of this year, the church sought to dismiss this lawsuit.
In January 2024, a married couple in California also filed a lawsuit against the church over alleged misuse of tithing funds. They stated that they believed that tithing funds would only be used for charitable and welfare purposes, to be used to build and maintain temples, or for missionary work. They claimed that the church used their tithes to help fund City Creek Center.
Derek Fox contributed to this report.
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