Rev. Robert H. Schuller
Crystal Cathedral: Schullers lose in court
http://www.ocregister.com/news/creditors-378830-cathedral-claims.html
Published: Nov. 26, 2012 Updated: Nov. 28, 2012 10:12 a.m.
Bankruptcy Court decision means family will get a
fraction of what it sought from Crystal Cathedral ministry./ THE ORANGE COUNTY REGISTER
The Rev. Robert H. Schuller, who propelled the Crystal Cathedral into one of the most recognized churches in the world, lost the bulk of his multimillion-dollar claims against his former ministry in U.S. Bankruptcy Court on Monday.
Judge Robert Kwan in Los Angeles ruled that Schuller, his wife, daughter and son-in-law did not provide evidence to back most of their claims.
"It's just a travesty after all that they've given and all that they've done," said daughter Carol Schuller Milner.
Schuller and his wife, Arvella, filed a number of claims, including a $5 million claim for breach of contract and another for an unspecified amount for copyright infringements. Kwan rejected most of the claims and instead awarded $615,625 to Schuller and nothing to his wife.
"This was a complete victory for the creditors and the church," said attorney Todd Ringstad, who represents the creditors.
With the ruling, "we have a thousand-plus checks to write" to creditors who have been awaiting payment since the church filed for bankruptcy protection in 2010, said attorney Nanette Sanders.
John Charles, chief executive of the Crystal Cathedral, said in an email: "A long and difficult period in the history of the Crystal Cathedral is over.
"The ruling will enable the final creditors to be paid and give us the money we need to move on with our ministry, spreading a message of hope and love to the people of Orange County and, through the 'Hour of Power,' to the world," Charles wrote. "The trial was painful for everyone involved, and our congregation is ready to move on. We love the Schullers and wish them well."
The elder Schullers, their daughter, Milner, and son-in-law Tim Milner will now be among the unsecured creditors vying for a piece of about $17 million available for disbursement. The creditors are owed about $14 million, Sanders said.
Kwan rejected most of the $272,000 in claims submitted by the Milners, and instead allowed $10,615 to Schuller's daughter for a housing allowance and $67,000 for Tim Milner for two of his claims.
After the creditors are paid, any remaining money will go to the Crystal Cathedral Ministries, which sold its Garden Grove campus to the Catholic Diocese of Orange and is looking to move to another site next summer.
At the heart of the case were claims for breach of contract, copyright infringements and intellectual property rights.
The Schullers argued that for decades they generously donated their books and other materials to benefit the Crystal Cathedral. But the ministry exploited their intellectual property, the Schullers said.
When they retired, Schuller entered into a transition agreement with the ministry that would compensate him for the rest of his life and he would continue his role as ambassador to the ministry. Both Schuller and his wife are in their 80s. But after the Crystal Cathedral entered bankruptcy, all payments stopped.
Kwan said that Schuller failed to establish that the ministry infringed on his copyrights or violated the terms of "the broad license" he gave for use of his works. The judge further ruled that Schuller did not establish an amount of damages for any alleged infringement.
Schuller owns the rights to his dozens of books. As for who owns the rights to the "Hour of Power" television program, Kwan said the Schullers did not prove they did. The show that has been televised around the world is copyrighted under the Crystal Cathedral Ministries.
In his ruling, Kwan called Schuller an employee. The Crystal Cathedral Ministries "had substantial oversight over Dr. Schuller, in that it was able to assign additional projects to him, and had broad discretion over when and how long Dr. Schuller worked."
The judge called the transition agreement between Schuller and the ministry "an employment contract" once he stepped down as senior pastor. Schuller was to continue as chairman of the Crystal Cathedral board of directors and be a "roving ambassador" for the "Hour of Power," among other things. Under an employment contract, Schuller is limited to one year's compensation, including one year of housing allowance and health insurance premiums.
Milner called the characterization of her father as the ministry's employee "a little comical."
Earlier in the trial, attorneys documented Schuller's prominence worldwide. During a Nov. 15 hearing, for example, among the exhibits that were debated for inclusion or exclusion were letters written to former Russian President Mikhail Gorbachev and President George H.W. Bush.
"Man's justice is unpredictable," Milner said Monday evening. "We are pretty surprised because it seemed like a lot of the evidence was disregarded."
Milner said she was unsure whether the family would appeal. The focus, she said, will be on how to help her parents financially.
"If any of us kids had stability, it wouldn't be so bad," Milner said. "The problem is we all were wiped out."
Several of Schuller's children worked in top-ranking positions at the Crystal Cathedral. Schuller's son, Robert A., became the senior pastor when his father stepped down. He was replaced by his sister, Sheila Schuller Coleman, who left earlier this year and began a new church. Their parents also severed their ties with the ministry and resigned from the board. The only remaining Schuller at the cathedral is grandson Bobby, a visiting Sunday pastor whose sermons are viewed on the "Hour of Power."
Of Monday's ruling, Milner said her father – who appeared at times forgetful while testifying recently – did not completely understand his standing in the case. "He still thinks the church is his ally."
